Speaking at the Digital Finance Economy Festival 2024 in Jakarta on Thursday (1/8/24,) Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto said that Indonesia ranked second as a digital investment destination in Southeast Asia in 2023, according to reporting from Antara News.
The minister said investment in Indonesia’s digital economy sector reached almost USD 22 billion in 2023, second only to Singapore with USD 141 billion, but higher when compared to Vietnam (USD 18 billion) and Malaysia (USD 17 billion).
He said that the achievement was inseparable from the government’s efforts to push the expansion of payment system digitalization.
Indonesia’s competitiveness rose 11 ranks to 45th place in 2023. In 2019, the country was 56th in competitiveness rankings, say Antara News.
In his presentation, Hartarto highlighted that the positive trend of digital technology adoption in ASEAN in 2022 also helped drive the value of ASEAN’s digital economy to USD 194 billion, with Indonesia’s share reaching 40 percent.
The e-commerce sector remains the main sector supporting Indonesia’s digital economy.
According to the minister, several factors supported ASEAN’s digital market share progress. First, there were 460 million Internet users in ASEAN countries in 2022.
Second, more than 90 percent of rural communities were users of digital services in the region.
Third, the value of venture capital investment in the ASEAN region reached USD 13 billion in the first half of 2023.
Therefore, he said that the digital economy niche market in ASEAN could be one of the targets of Indonesia’s digital economy. In addition, Indonesia is home to startups and has 15 unicorns and 2 decacorn companies, reports Antara News.
On the same occasion, President Jokowi said that amid global economic uncertainties, Indonesia needs to use all existing instruments to continue growing and one of the fields that is considered to have big potential is the digital economy sector.
“I have repeatedly spoken about Indonesia’s digital potential opportunities in the future. (Our) Digital economy will grow fourfold by 2030, reaching around USD 210 billion to USD 360 billion,” he said, according to Antara News.
Source: Antara News
Stock image by Gerd Altmann from Pixabay
