The Digital Komodo Dragon: How Indonesia can capture the digital trade opportunity at home and abroad

The Digital Komodo Dragon: How Indonesia can capture the digital trade opportunity at home and abroad

With Indonesia’s government’s aim for the country to become Southeast Asia’s largest digital economy by 2020, digital trade will be crucial not only as a way to increase and diversify the country’s export base but also for helping local businesses leverage digital technologies across every sector of the economy. The value that digital trade creates for the domestic economy today is estimated at IDR 125 trillion, but can grow by more than 18 times to reach IDR 2,305 trillion by 2030. Some of the largest beneficiaries are expected to come from the traditional sectors, such as agriculture and infrastructure.

Besides creating value from abroad through digital exports, digital trade also supports large productivity improvements in Indonesia’s domestic sectors. Yet, traditional economic measures struggle to adequately capture both the value of digital trade to exports and Indonesia’s domestic economy. However, appreciating the value of digital trade is crucial when formulating trade and economic policy.

This report assesses (a) the current and future value of the digital trade opportunity for Indonesia’s exports and the domestic economy; (b) perceived concerns relating to digital trade abroad and how these could be addressed without unduly impeding digital trade flows; (c) priority areas Indonesia could focus on in order to fully harness the benefits while managing the potential risks of digital trade.

The research by AlphaBeta was commissioned by the Hinrich Foundation and launched in Jakarta together with the Indonesian E-Commerce Association (iDEA) and the Centre for Strategic and International Studies (CSIS).

Click here for the full report in English and here for the version in Bahasa Indonesia or below for more.

More

Related Articles

Healing with Algorithms: Creating a safe environment for AI’s integration into healthcare

Healing with Algorithms: Creating a safe environment for AI’s integration into healthcare

Artificial Intelligence (AI) has the potential to transform diagnostics, medical research, and patient experiences. Despite this, several obstacles stand in...

13 Mar 2024 AI Policy Lab reports
Connecting Fiji: The opportunity for growth and prosperity from subsea internet investment

Connecting Fiji: The opportunity for growth and prosperity from subsea internet investment

The widespread adoption of digital technologies, such as Artificial Intelligence, will require investments in digital infrastructure to ensure connectivity and...

7 Feb 2024 Reports
The Economic Value of A2P SMS in Mexico

The Economic Value of A2P SMS in Mexico

The increased connectivity enabled by digital technologies has changed communication patterns throughout economies and societies and played an important role...

25 Jan 2024 Reports
Telecoms and Government Regulators: Top 10 Focus Areas for 2024

Telecoms and Government Regulators: Top 10 Focus Areas for 2024

The world of telecommunications is changing. New applications have failed to emerge for 5G or gigabit broadband, with more focus...

18 Dec 2023 Opinion