Jakarta, The Gulf Observer: Indonesia is experiencing a digital economy boom, Tourism and Creative Economy Minister Sandiaga Uno said at the Asian Creative and Digital Economy Youth Summit (ACE-YS 2023), here on Sunday.
“We are probably an Asian tiger that is growing rapidly in creative and digital economy ecosystems,” he stated at the event held at the Taman Mini Indonesia Indah (TMII) in Jakarta.
Based on the study by Google, Temasek, and Bain & Company, Indonesia’s digital economy in 2022 was expected to reach US$77 billion or grow 22 percent from 2021. The number is expected to double to US$130 billion in 2025.
Much of that growth has been driven by e-commerce, but more subsectors, such as the game, music, film, and animation industries, have shifted to the digital realm, therefore contributing to the digital economy.
Meanwhile, the growth of e-commerce’s gross merchandise value (GMV) in Indonesia is estimated to increase from US$59 billion in 2022 to US$95 billion in 2025.
“Not only e-commerce, but (in the digital economy), we also look at (online) transportation, online food delivery, online travel, such as Traveloka, Tiket.com, and online media. So, (Indonesia’s) digital economy as a whole, is expected to reach US$400 billion in 2030,” Uno said.
He said Indonesia needs 600 thousand digital talents every year for the next nine years. However, currently, only 400 thousand digital talents can be produced every year through the education sector.
Uno explained that there is a gap of 200 thousand talents that need to be made available. According to him, this can be done by using innovation, research, artificial intelligence, and gamification to educate young people on digital skills and knowledge.
“If (the gap) is not filled, it will slow down our digital economy and greatly impact our target of becoming a developed country by 2045,” he said.