Wednesday, 16 October 2019

Govt Eyes 11pct Digital Economy Contribution to GDP in 2020

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Laila Afifa

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  • TEMPO.CO, Jakarta - Communication and Informatics Minister Rudiantara said that the digital economy is targeted to contribute 11 percent of the country’s Gross Domestic Products (GDP) in 2020. He assessed the growth of the sector will be the highest among other ASEAN countries.

    “Referred to the research by Google Temasek and Bain & Company, the potential of Indonesia’s digital economy will reach US$133 billion. So, from the figure we can calculate that its contribution to GDP will be at 11 percent,” said Rudiantara at The Hermitage Hotel, Menteng, Central Jakarta, Thursday, October 10.

    Meanwhile, he predicted this year’s figure will be around 9 percent, slightly increases from the target of 8.5 percent in 2018. However, last year’s realization at 7.3 percent was lower than the target.

    According to the minister, the development of the digital economy in Indonesia is marked by the recent birth of new unicorn, OVO, following Gojek, Tokopedia, Bukalapak, and Traveloka. The digital payment service firm reportedly has booked a valuation of up to US$2.9 billion per March 2019.

    Rudiantara foresaw that the country’s digital economy will further develop by the emergence of new unicorn from the education or health sector at the end of this year. Also, Indonesia will possibly have four to five new unicorns in 2020.

    FRANCISCA CHRISTY ROSANA