Remarks of President of the Republic of Indonesia after the Opening of the 2024 Festival of Digital Finance Economy Indonesia and Creative Works Indonesia, Jakarta Convention Center (JCC), Jakarta, August 1, 2024

Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullahi wabarakatuh.

Good morning,

May prosperity be upon us all.

Distinguished Ministers of the Indonesia Onward Cabinet,

Distinguished Governor of Bank Indonesia (BI), along with the members of the BI Board of Governors;

Distinguished Chairperson of the Board of Commissioners of the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS), along with all their staff;

Your Excellencies, Ambassadors of Friendly Countries;

Distinguished leaders of the People’s Consultative Assembly (MPR) who are also present this morning;

Business leaders in the economic and financial sectors;

Distinguished Ladies and Gentlemen.

Amidst the global economic slowdown, amidst global economic uncertainty, we must be able to utilize all instruments, seize all opportunities to continue growing.

I have repeatedly mentioned the potential and opportunities of Indonesia’s digital future. The digital economy will grow fourfold by 2030, reaching USD210-360 billion, or if converted to rupiah, it could be around Rp5,800 trillion. Digital payments will also grow, expected to increase 2.5 times by 2030, reaching USD760 billion, or Rp12,300 trillion. These are very significant numbers. Additionally, we are supported by the demographic bonus peak in 2030, where 68% of the population will be of productive age, including Gen Y, Gen Z, and Gen A.

Currently, the number of active mobile phones in Indonesia has reached 354 million, exceeding our population of 280 million. This means that one person can own more than one mobile phone. With 185 million internet users, the potential is immense.

Therefore, digital transformation, particularly in the fields of economy and finance, is very important. Especially with the rapid technological advancements today. Many sectors have begun to shift to AI, from administration, services, to entertainment. For example, Elon Musk has already created an AI catwalk. The models use the faces of world figures, including Elon Musk himself, President Donald Trump, President Kim Jong-Un, Speaker of the U.S. House Nancy Pelosi, Tim Cook, Prime Minister Justin Trudeau, Hillary Clinton, Mark Zuckerberg, and President Barack Obama.

This will become a business potential in the future. Clothing and products are transformed into digital forms, marketed digitally through AI catwalks and digital showcases. They can later be purchased digitally and paid for using digital payments.

Imagine if our MSME products could achieve this, as we have a very large number of MSMEs—64 million. Certainly, the digitalization of MSMEs will boost our digital economy and digital payments growth. Therefore, I emphasize that this digital transformation must be inclusive and fair. Communities in remote areas, lower economic groups, micro-economies, and MSMEs must all have equal access and opportunities, and must receive the same protection.

I urge the OJK and BI to enhance public protection in the digital economy sector. Our financial literacy is still low, as I recall, approximately 50% of the population is still vulnerable to fraud and digital crime. Therefore, prepare a consumer protection system. Do ensure the security of consumer data. The small people must not become the ones who suffer losses.

That concludes my remarks. And with the recitation of bismillahirrahmanirrahim, this morning, I officially open the Indonesian Digital Financial Economy Festival, and I launch the blueprint for the Indonesian Payment System 2025-2030.

Thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(AS/MUR)