Landscape of the Digital Economy in Indonesia
Yudho Giri Sucahyo, Universitas Indonesia
The reduced price of the Internet in 2007 is an important milestone of e-‐ commerce booming in Indonesia which leads to great development of Digital Economy. As the fourth most populous country in the world and heavy users of social media, Indonesia is a big market. However, the number of Internet users in Indonesia is still less than one third of the total population, which is far short of the true potential of Digital Economy in Indonesia.
The success of Digital Economy will be determined by both Internet-‐based technologies and policies. We will look at the Indonesia’s current condition on internet-‐based technologies which are information systems, infrastructure, information, and people. Successful disruptive applications such as GO-‐JEK (a local startup on transporation sector like Uber) and its impact to daily life of the citizens will be discussed. Digital divide of IT infrastructure will be reviewed since it is a challenge not just for domestic constituencies, but for global firms that wish to develop and serve the market.
Personal information protection and data localization are two important issues related to information. Localization regulation that was introduced in 2013 has produced significant foreign investment in Indonesia’s IT sector. This increased investment will need competent IT human resources and we will look at Indonesia’s strategy on increasing ICT human competency. Moreover, we will also look at the existing IT-‐related policies and discuss its alignment with upcoming regional trade agreement such as TPP (Trans-‐Pacific Partnership) and RCEP (Regional Comprehensive Economic Partnership).