Indonesia's Potential and Challenges Facing the Strengthening of the Digital Economy

Based on data from the Central Statistics Agency (BPS), the growth of Information and Communication Technology (ICT)-based industries over the last five years (2011-2015) has increased by 10,7 percent. Higher than the national economy of 6,56 percent. It is estimated that this figure will continue to grow in tandem with various national initiatives such as the President's dream to make Indonesia strong in the world digital economy in 2020.

In addition to regulations, infrastructure support that is starting to spread evenly also contributes. The reason is that with easier access to technology, digitizing services can be enjoyed by various groups. From upscale to grassroots. The most significant is none other than the use of the internet. The increase in its use has brought about various opportunities in the national digital business.

In discussion attended by the Minister of Communication and Informatics, experts, and corporate representatives some time ago, said that currently there are many indications of the progress of the Indonesian ICT industry. The allocation of capital expenditure in the ICT sector has also been observed to increase. IDC data shows that this year's value will reach Rp 201,76 trillion or an 8,5 percent growth from the previous year.

Opportunities, challenges and confidence in the ICT sector

The President believes that the strength of Indonesia's digital economy can be the largest in Southeast Asia. By 2020, the industry's potential is targeted to reach $130 billion. To realize this vision, the President prioritizes digital startups so that they can easily get access to capital. One of them is through massive deregulation of the e-commerce business.

Various design, roadmap, legislation, to support continues to be intensified through various programs. It looks quite ideal when you see the variety of technology industries that continue to develop providing alternative solutions in Indonesia. Investors were not quiet enliven this frenzy. This means that trust is starting to form, from the consumer side, stakeholders, to investors. In fact, belief alone is not enough to be the beginning of a sweet story.

There are also many challenges to be solved. What is clear in front of the eye is competition. To strengthen the digital sector as a pillar of the national economy, a great involvement of the stakeholder and driving the national economy. If you look at the digital landscape in Indonesia today, in every segment there are foreign players fighting for the same potential.

Competition is unavoidable because it becomes a business driving node. This can be anticipated with various approaches that have been arranged from an early age. It can be said that this sector is still green, not too messy. Regulatory role for employ this sector Being fertile is a priority, both through proper regulation, easier access, and efforts to improve quality in the supporting sectors.

Consumers realize the importance of digitization

Various survey results argues that Indonesian consumers have started to form relevant consumption patterns. Various growths occurred here and there. Basically, consumers have begun to understand the role of digital technology in making their lives easier and digital actors are taking this opportunity well. The power of Indonesian consumers, which has been mentioned a lot, has also become a magnet for foreign companies and investors to come.

One example of an indication of the strengthening of national digital consumption is DailySocial research results related to public confidence in non-cash payment instruments for various needs. This growth is in line with the needs of digital players to gain traction in their services. Even though the service on-demand and e-commerce is still the favorite, it is believed that other categories are following its popularity in user acquisition.

Consumers have realized the importance of digitalization to make their daily life more effective. This awareness has now become a great potential that is being hunted by many parties. It is proper that what is needed by consumers can be fulfilled by domestic service and product providers. Many still need to be matured to realize these goals with the help of various parties, both the government, the private sector, to independent human beings as innovators.