Digital Economy
From The Report: Indonesia 2024
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Digital technologies play a crucial role in Indonesia’s burgeoning economy, driven by a competitive telecommunications sector and rapid growth in financial technology and e-commerce. The Covid-19 pandemic significantly accelerated the migration of business operations, education and social interactions online, highlighting the importance of digital infrastructure. Indonesia’s young population and the government’s emphasis on integrating digital skills into the education system offer substantial opportunities for further expansion in the digital economy. The government is also focused on modernising the economy by attracting increased private and foreign investment in advanced manufacturing, renewable energy and smart cities. However, achieving these goals requires addressing various regulatory, geographical and socio-economic challenges.
Amid these hurdles, Indonesia’s government has been proactive in updating digital policies to enhance protections for consumers, businesses and investors. Issues such as high spectrum costs, uneven infrastructure distribution and low-quality service delivery in underserved areas need to be tackled. Nevertheless, these challenges present significant opportunities for growth and investment. Recent changes to the country’s business and investment laws are expected to create a more favourable environment for international investors, further bolstering the country’s digital sector and overall economic development.
This chapter contains an interview with Kusumo Martanto, CEO and co-founder of Blibli.