Minister Highlights Significance of Digital Transformation for Global Economic Recovery

Minister of Foreign Affairs Retno LP Marsudi (Photo by: PR/Rahmat)

Minister of Foreign Affairs Retno LP Marsudi underscored the significance of digital transformation for global economic recovery.

“International collaboration and cooperation must continue to be encouraged so that digital transformation can contribute to world economic growth, including for developing countries,” the Minister said in her remarks at the Digital Economy Working Group (DEWG) Kick-Off Meeting, Tuesday (03/15).

The DEWG is a working group under the Sherpa Track G20 taking place for the first time under the Indonesian Presidency. The DEWG aims to discuss cooperation in digital connectivity, digital entrepreneurship, reduce the digital skills gap, and data flow. The kick-off meeting marks the beginning of a series of DEWG meetings under the theme “Achieving a Resilient Recovery: Working Together for a More Inclusive, Empowering, and Sustainable Digital Transformation”.

In particular, the Minister stated three focuses of international cooperation that need the attention of digital economy players in the G20.

First, an international collaboration to encourage inclusiveness and bridge the global digital divide.

The Minister noted that 96 percent of those without internet access reside in developing countries. For this reason, she encourages the G20 to become a driving force for global investment to build quality and affordable digital infrastructure.

Second, strengthening global cooperation in digital literacy is considered crucial to help people fully benefit from digital transformation. According to Retno, the two sectors that need to be targeted for capacity building are local MSMEs and the Government.

“International cooperation is very much needed to facilitate the strengthening of digital capacity for developing countries, including in the financing aspect,” she said.

Third, international cooperation to build a secure digital ecosystem.

With an estimated potential loss from global data breaches of up to US$5 trillion by 2024, the digital security aspect is a big question. For this reason, the Minister highlighted that privacy guarantees, secure payment mechanisms, and clear consumer protection are vital to rebuilding trust.

The Minister also expressed belief that the DEWG will be an important beginning to strengthen the future global digital order and encourage the sustainability of the discussion of the digital economy as a central issue of the G20. (PR of Ministry of Home Affairs/UN) (FI/MUR)