KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Digital Platforms and Impactful Innovation: Towards Sustainable Development in Indonesia

Digital platforms have unique features that can be leveraged to advance the public interest and achieve sustainable development goals. These were key insights from a Research Seminar and Dialogue on 21 August 2024 by regional technology policy think tank, Tech for Good Institute (TFGI), and the Indonesian Chamber of Commerce and Industry (Kadin). The presentation and dialogue was based on TFGI's latest report - "Leveraging Digital Platforms for Public Benefit".

Based on consultations with digital platforms and stakeholders from the public and private sectors, the report highlights how digital platforms are not just catalysts for economic growth.

While digital platforms have transformed critical economic sectors across ASEAN, from e-commerce to digital financial services, food delivery, transport, travel, education, healthcare, and logistics, they have also responded to crises, promoted social inclusion and access to basic services, and encouraged environmentally friendly practices. The report includes illustrative examples of the beneficial public impact of digital platforms developed by the public and private sectors.

The report also highlights the need for increased collaboration across sectors to realise the potential of digital platforms for an inclusive, equitable and sustainable digital future.

Digital Platforms and Indonesian Society

The report presentation was followed by a dialogue with Theodore Sutarto (Assistant Deputy Minister, Coordinating Ministry for Economic Affairs), Samsu Sempena (Director of Technology, PMO Prakerja), Tirza Munusamy (Head of Public Relations, Grab Indonesia), Noudhy Valdyrno (Director of Public Policy and Business Development Indonesia, Ant International) and Dr. Ming Tan (Founding Executive Director of Tech for Good Institute). The discussion revolved around digital platforms as part of a broader digital ecosystem that has transformed the lives of many in Indonesia. Indonesia has witnessed rapid growth and acceleration in its digital economy, accounting for 42 per cent of ASEAN's digital economy by 2021.

Assistant Deputy Minister, Coordinating Ministry for Economic Affairs, Theodore Sutarto spoke about some of the unique characteristics of Indonesia's digital economy - an abundant e-commerce market, a young and tech-savvy population, and an entrepreneurial spirit. These factors have fuelled innovation and adoption. Mr Sutarto also mentioned the important role of the public and private sectors in addressing the remaining challenges in the growth of the digital economy, such as infrastructure and literacy gaps.

PMO Prakerja's Director of Technology, Samsu Sempena highlighted that digital platforms can also simplify government services and processes. He mentioned how PMO Prakerja, the government's skills upgrading programme, leverages the platform's system to enable Government to People (G2P) cash transfers and vocational training across the country.
Head of Public Relations, Grab Indonesia, Tirza Munusamy emphasised the importance of digital platforms in everyday life, expanding economic opportunities for both small businesses and consumers. She also highlighted how the pandemic is driving a change in attitude towards platform services, from what was initially considered a luxury to an everyday necessity accessible to many.

Director of Public Policy and Business Development Indonesia, Ant International, Noudhy Valdryno emphasised how digital platforms promote the development and competitiveness of micro, small and medium enterprises (MSMEs). For example, platforms provide access to digital financial services while building the infrastructure for many small businesses to automate and improve their processes. Through platforms, MSMEs are further expanding their reach, benefiting previously underserved communities across the Indonesian archipelago.

Tech for Good Institute Founding Executive Director Dr Ming Tan emphasised the need to align innovation with country and regional development goals. Business innovation is needed so that the benefits of technology can be felt by the whole society.

Digital Platforms and Long-term Development

The dialogue also showed how platforms have unique features such as efficiency, scale, accessibility and agility, which can be leveraged for economic, social and environmental progress. Kadin's Indonesia Emas 2045 Roadmap outlines four strategic pillars for Indonesia's further progress, including Enhancing Resilience, Driving Prosperity, Strengthening Inclusion, and Enhancing Sustainability. All speakers emphasised the need for continued partnerships and linkages across public, private and impact sectors to make progress in these areas. One example is sustainability, where platforms can partner with governments and the private sector to reduce the carbon footprint of businesses and shift to a green and circular economy.

Vice Chairman of Communications and Informatics, Firlie Ganinduto highlighted Kadin's efforts in paving the way for a resilient and innovative digital industry, ensuring that by 2045, Indonesia stands as a global leader in technology and economic excellence - as our vision for a Golden Indonesia 2045.

Ultimately, all speakers highlighted vital policy areas and regulations needed to maximise their impact. These included a robust framework for data governance to facilitate data sharing. Regulation must also balance innovation and competition, especially in financial services. The panel concluded by emphasising the need for policies that build trust between government, business and society.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry