Trade Minister: Indonesian Digital Economy to Grow Eightfold by 2030

Minister of Trade Muhammad Lutfi delivers press statement on Downstreaming of Digital Economy, Thursday (10/6) in Jakarta. (Photo by: Rahmat/PR)

Indonesian digital economy has bright future and is predicted to grow up to eightfold by 2030, Minister of Trade Muhammad Lutfi has said.

“The growth of the digital economy will reach eightfold from Rp632 trillion to Rp4,531 trillion. E-commerce will play a crucial role with 34 percent growth or equivalent to Rp1,900 trillion, followed by several other sectors, namely B2B (business-to-business) with an increase of thirteen percent or equivalent to Rp763 trillion and health-tech with an increase of eight percent or equivalent to Rp471.6 trillion,” he said in a press statement in Jakarta, Thursday (10/6).

Meanwhile, he added, Indonesia’s Gross Domestic Product (GDP) will grow from Rp15,400 trillion to Rp24,000 trillion by 2030.

“Indonesia’s GDP will reach Rp323 trillion or 55 percent bigger than ASEAN’s GDP, and the figure will increase to Rp417 trillion by 2030,” he added.

The Minister further said that there is still a lot of potential for the country’s digital economy. For example, to date, the e-commerce still only serves the food and beverage industry of Rp18 trillion from its total potential of Rp3,669 trillion, thus there is still huge room to grow.

In a bid to optimize the potential of the digital economy, he added, a number of things must be improved, including telecommunications infrastructure and digital consumer protection.

“The human resources with special skills in technology are also one of the important basic pillars. Likewise, the innovation ecosystem is also important to revive the digital economy, as well as public services, the digital economy, and good digital governance and strategy,” he explained.

Lutfi emphasized that regarding the downstreaming of the digital economy, Indonesia must also be able to make the most of new wave technology developments such as 5G technology, IoT (internet of things), blockchain, artificial intelligence (AI), and cloud computing.

“We hope that the digital economy will improve Indonesia’s growth, at least in the logistics and industrial sectors. In addition, with the digital economy, the target of logistics sector is to cut cost from 23 percent today to 17 percent,” he said. (TGH/UN) (EST/MUR)