Digitalization Becomes a New Economic Driver

Digitalization has provided a lot of opportunities to accelerate economic growth. However, it turns out that only 21 percent of MSMEs have been able to take advantage of digital technology.

KOMPAS/PRIYOMBODO (PRI)

Activities at the electronic payment company Doku office in Jakarta, Tuesday (22/10/2019). Indonesia's digital economy ecosystem is maturing along with the rapid growth of the country's digital industry.

JAKARTA, KOMPAS — Digitalization, which has developed rapidly in the last two years, is expected to become a new engine of economic growth. However, amid the bright prospects, there are challenges that should be anticipated so that digitalization will not widen the gap in Indonesia’s economic recovery.

The digitalization trend is seen in the rapid growth in the value and volume of digital transactions. According to data provided by Bank Indonesia (BI), the value of digital banking transactions reached a total of Rp 11.10 quadrillion (US$758.68 billion) in the first quarter of 2022, a 34.9 percent increase compared to the figure recorded in the first quarter of 2021.