Bappenas Encourages Digital Transformation as the Crux of Indonesia’s Economic Transformation

The Ministry of National Development Planning/Bappenas continues to encourage digital transformation to increase demand for digital products, digital content, and digital devices so that Indonesia is ready to become a supplier of digital products.

The use of digital technology will create jobs and improve people’s welfare which can push Indonesia to become a high-income country, and is an effective strategy to get Indonesia out of the middle-income trap before 2045. Based on the 2020 Internet World Stats, Indonesia has the world’s fourth-largest internet user rate behind only China, India, and the United States. The number of Indonesian internet users in 2021-2022 is 210.03 million, with 191.4 million active users on social media. In the global ranking, Indonesia also has a digital gap in terms of internet speed, which is still relatively low compared to other countries, as well as in data security.

“The development of the digital industry is an inseparable part of digital transformation, and this digital transformation is part of the core of Indonesia’s economic transformation so that Indonesia can become a developed country, a high-income country,” said Bappenas’ Deputy of Economic Affairs Amalia Adininggar Widyasanti during the Closing the Gap: Digital Divide in Indonesia event on Thursday (11/5).

Amalia emphasized that the solution to the digital divide between regions is to develop digital infrastructure. However, digital infrastructure development will not be effective if people do not take advantage of the availability of the infrastructure. Therefore, it is necessary to increase the community’s digital skills.

“I propose that the Closing the Gap: Digital Divide in Indonesia event is not just about equalizing access from all of our regions or women so that they can get more access. However, how do we use digital technology to increase the welfare and income of the people because we must become a high-income country if we do not want to be stuck in the middle-income trap,” Amalia said.

Bappenas, along with Telkom Indonesia, launched the 2023-2045 Indonesia Digital Industry Development Master Plan at the 2022 Indonesia Development Forum Peak Event titled “The 2045 Development Agenda: New Industrialization Paradigms for Indonesia’s Economic Transformation” in Bali, on 21-22 November 2022, to support Indonesia should not only become a digital industry user, but also a digital market as well as a producer.