The Adoption Of The Latest Technology Unlocks Promising Economic Potential In Indonesia

Foto: IST

The Adoption Of The Latest Technology Unlocks Promising Economic Potential In Indonesia

Monday, 16 Dec 2024

The Fourth Industrial Revolution has instigated fundamental changes across various facets of life, particularly in the widespread adoption of the latest digital technologies, including Artificial Intelligence (AI), Big Data, the Internet of Things (IoT), and Machine Learning (ML).

Indonesia boasts a substantial digital population and promising economic potential. Consequently, the nation has significant opportunities to emerge as a key player in the implementation and adoption of these new technologies. However, achieving this goal necessitates concerted efforts to promote innovation and the development of Information and Communication Technology (ICT) in Indonesia.

"The implementation of new technologies, especially those rooted in Industry 4.0, holds immense potential to transform various industrial sectors," stated Jamalul Izza, ST, MM, the Chairman of the Indonesia Digital Innovation & Achievement Awards (IDIA) 2024, and also the Chairman of the Indonesian Internet Foundation, in a written statement in Jakarta on Sunday, December 15, 2024.

It is noted that Indonesia ranks fifth globally in terms of active internet users, following the Philippines, Brazil, Thailand, and Colombia. The number of active mobile phones in the country has reached 354 million, surpassing the current population of 280 million.

The Covid-19 pandemic, which compelled approximately 270 million Indonesians to remain at home, has further accelerated the growth of digitalization, particularly in the digital economy. E-commerce services have revolutionized shopping habits in recent years, with transaction values projected to exceed US$ 130 billion by 2025.

Digital finance, encompassing digital payments, online loans, and digital investments, has also emerged alongside the rapid expansion of the digital economy.

The digital economy is expected to experience a fourfold growth by 2030, with values ranging from US$ 210 billion to US$ 360 billion. The digital payment sector is predicted to grow by 2.5 times by 2030, reaching a value of US$ 760 billion.