Entering the second month of Expo 2020 Dubai, Indonesia once again demonstrated the nation’s strength in the digital economy that is expected to increase investment, establish trade relations and grow international tourism.

 

“Indonesia is ready to become the most promising digital market in Southeast Asia. This is supported by the ongoing work of various industry sectors in the country to enable inclusive and sustainable economic growth,” said Minister of Trade of Republic of Indonesia Muhammad Lutfi.

 

Firstly, with its abundant resources, talent and technological strengths, Indonesia is quickly becoming a key part of the global supply chain. In the trade sector, it is strengthening its capabilities to produce various essential commodities, such as steel, nickel and copper. Indonesia is also increasing efforts to digitize and empower the many micro, small and medium enterprises (MSMEs) in the country, so that more can contribute to national exports.

 

Secondly, Indonesia’s ongoing efforts to grow its digital ecosystem is also aligned with its vision to build a circular economic system. By 2045, Indonesia aims to become a developed country with an economic system that maintains the maximum value of products, raw materials, and resources.

 

Trade Minister Lutfi believes Indonesia will become the most promising market for foreign investment with the government’s ongoing efforts to accelerate trade and tourism as well as the exponential growth of Indonesia’s digital and circular economy.

 

“The COVID-19 pandemic forced millions of Indonesians to shift their communication and social activities to online spheres, therefore we have witnessed the rapid development of digital economy growth. Since 2015, the Gross Merchandise Value (GMV) in the digital economy has grown by more than 40% annually. This growth trend has increased even more after the pandemic to 42% in April 2020. These figures show that Indonesia is emerging to be the most promising digital market in Southeast Asia at least by 2025,” said Lutfi.

 

Based on these figures, Lutfi explained the GMV in the Indonesia digital economy is projected to reach US$ 130 billion, a growth rate far above other countries in Southeast Asia.

 

In addition, Lutfi said the current development of Indonesia’s digital economy is closely linked to the nation’s growth enablers, such as  PT Telekomunikasi Selular (Telkomsel) and PT AplikasiKarya Anak Bangsa (GoTo), which have built the foundation of Indonesia’s digital economy.

 

Telkomsel is Indonesia’s leading digital telecommunications company that has provided the country with key digital connectivity solutions as well as developing an inclusive and sustainable digital ecosystem for the past 26 years. With the support of more than 237,000 base transceiver stations (BTS), Telkomsel enables 169 million users throughout Indonesia to stay connected including in remote areas. As part of the nation’s key infrastructure, Telkomsel continues to contribute to the growth of Indonesia’s digital economy by being the first 5G operator, providing innovative value-added digital platforms and services, transforming the industry with IoT, Big Data, and Digital Ads as well as encouraging the development of a digital lifestyle for all levels of society.

 

“Telkomsel has been at the forefront in accelerating Indonesia’s digital ecosystem and improving the quality of life for all levels of society. At Expo 2020, we are showcasing our technology innovations and digital solutions that contribute to the acceleration of Indonesia’s digital & creative economy sector, especially in advancing cross-sectoral industries, which we hope can encourage more investment and collaboration in Indonesia, be it for investment, trade, or the tourism sector,” said President Director of Telkomsel, HendriMulyaSyam.

 

Meanwhile, GoTo, as the leading technology group in Indonesia, combines on-demand logistics, e-commerce, and financial services through the Gojek, Tokopedia and GoTo Financial brands. It is the first platform in Southeast Asia to host these three essential use cases in one ecosystem, serving over 100 million monthly active users, with potential for accelerated growth in the years to come. As the tech and innovation crown jewel of Indonesia, GoTo offers an unparalleled selection of goods and services, enabling consumers to shop, buy food and groceries, book a taxi, arrange deliveries, pay bills and more in one convenient place. The digital ecosystem that GoTo built will continue to provide strong support for the development of the trade, investment and tourism sectors in Indonesia.

 

“GoTo has always believed in the potential of Indonesia’s digital economy, with our business built around using technology to enable inclusive growth from day one. Indonesia has a large and growing online population, so we know that there is still a lot more we can do to provide greater convenience for consumers and empower more small businesses. With our expertise and deep presence in Indonesia, we are optimistic that we will be able to bring the benefits of the digital economy to more people and make Indonesia a true digital powerhouse globally,” said GoTo Chief Executive Officer Andre Soelistyo.

 

The support from GoTo and Telkomsel along with other startups and telecommunications companies in Indonesia opens up greater opportunities for Indonesia’s aspiration to become the world’s leading digital economy.