Indonesia Could Be the Largest Digital Economy in Southeast Asia by 2030: Minister

Indonesia's Minister of Cooperatives and SMEs Teten Masduki has asked meatball soup and noodle vendors to join the online business. He stated that Indonesia will soon become the largest digital economy with the potential to reach Rp4,500 trillion in Southeast Asia by 2030.



He said, "Hence, Mr. President Joko Widodo (Jokowi) understands very well that our huge digital economy in Southeast Asia must also be enjoyed by meatball soup vendors." Masduki also mentioned that the President had asked him to guide meatball noodle soup vendors to enter the digital ecosystem as it will allow them to grow their businesses further.

The government of Indonesia is targeting thirty million small, medium, and micro enterprises to enter the digital market. It includes a target of 19.5 million MSMEs this year. Minister Masduki also said that he is optimistic that the target will be achieved, especially if the noodle and meatball soup vendors choose to participate actively.



Bambang Haryanto, the Chairman of the Association of Chicken Noodle and Meatball Soup Vendors (Papmiso), shared some positive news in this regard. He said 1,200 out of the fifty thousand Papmiso members are already connected to online businesses. Also, GoFood accommodates 62,700 food vendors, and Grab Food has 120,000 food vendors to offer their food products via an online application.

The Minister expressed hope that 50,000 members of Papmiso will go online in the next two years. The Cooperatives and SMEs Ministry is willing to help noodle and meatball soup vendors so that they can obtain business registration numbers (NIB). When they do that, they will have better access to banks to obtain capital assistance per the people's business credit (KUR) scheme. It will also make it easier for them to obtain distribution permits and halal certificates.

President Jokowi opened a virtual shadow puppet show during the occasion that Papmiso organized. The event was organized to celebrate the 77th Anniversary of the Independence of the Republic of Indonesia. The event was attended by hundreds of noodle and meatball soup vendors belonging to thirty-four provinces.

This event also included a fashion show. It also included a free meal of three thousand bowls of meatball noodle soups for everyone in the audience. During the event, the President advised all meatball soup and noodle vendors to use digital technology. It would help businesses to grow faster and even create job opportunities.



Rising Investment Value of Indonesia

According to research by Google, Temasek, Bain & Company that was released last year, the investment value of Indonesia's digital economy during Q1-2021 was US$ 4.7 billion. It has exceeded the highest value for the last four years. With this feat, Indonesia became Southeast Asia's most popular investment destination and even surpassed Singapore.

In addition to great investment value, Indonesia also has potential which can strengthen opportunities for accelerating the development of the digital economy. Only last year, the value of e-commerce reached IDR 401.25 trillion. It also had a transaction volume of 1.73 billion.

Sources:

https://en.antaranews.com/news/245589/indonesia-to-be-largest-digital-economy-in-se-asia-by-2030-minister

https://thefastnewz.com/indonesia-to-be-largest-digital-economy-in-se-asia-by-2030-minister/

https://www.ekon.go.id/publikasi/detail/4026/coordinating-minister-airlangga-digital-economy-in-indonesia-is-the-highest-among-southeast-asia-countries

 

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