COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/114/SET.M.EKON.3/03/2023

Optimizing the Potential of Digital Economy Growth, the Government Encourages the Creation of a Conducive Digital Ecosystem

Jakarta, March 29th, 2023

The digital economy sector is considered to be one of the triggers for accelerating recovery and increasing economic resilience. In Southeast Asia, the value of the digital economy in 2021 is USD 174 billion and predicted to reach USD 1 trillion in 2030. In addition, the total "online population" in Southeast Asia has also reached 440 million people and projected to increase so that the digital economic potential is also increasing.

Meanwhile in Indonesia, the digital economy is also experiencing rapid development, one of which is driven by the contribution of start-ups as part of the digital ecosystem. To date, Indonesia is the 6th ranked country with the highest number of start-ups, reaching 2,506 units with 9 Unicorns and 2 Decacorns namely GoTo and J&T Express.

"Start-ups play an important role in creating jobs, increasing welfare, and contributing to a sustainable economy through the innovative solutions that they offer," said Coordinating Minister for Economic Affairs Airlangga Hartarto when delivering a virtual keynote speech at the Press Conference of the Economic Research Institute (LPEM) Studies Launching, University of Indonesia (UI), regarding the Social Impact of the GoTo Ecosystem in 2022, Wednesday (29/03).

According to a study by LPEM of Faculty of Economics and Business (FEB) UI, in 2022, GoTo start-ups are projected to be able to provide added value of IDR 349 ​​trillion to IDR 428 trillion to the national economy, equivalent to 1.8% to 2.2% of GDP, originating from company and partner activities in the GoTo ecosystem. In addition, the GoTo ecosystem is also considered capable of increasing employment opportunities for 0.8% to 1.2% of the total working population in 2022 through merchant and seller business activities.

Furthermore, Coordinating Minister Airlangga said that GoTo also plays a role in advancing MSMEs through various integrations of on-demand, e-commerce, and financial services. GoTo also helps MSME on-boarding programs on digital platforms. In 2022, as many as 20.76 million MSMEs have entered the digital ecosystem.

For this reason, in order to create a conducive digital ecosystem, support from all parties is needed, starting from the Government, industry, associations, academics, to the general public. Support will be provided by the Government in the form of regulations that support the growth of the digital industry, development of technology infrastructure, and training for workers in the digital field.

In addition, the industrial sector can also provide support by innovating and collaborating to expand markets and increase the competitiveness of Indonesia's digital products and services. On the other hand, the community can also contribute by continuing to learn and improve digital literacy so that they can optimally utilize digital technology and protect themselves from potential risks.

"I hope that GoTo can also continue to innovate to provide superior solutions and consistently help facilitate the transformation of MSMEs, support the achievement of the target of 30 million MSMEs on-boarding in 2024, facilitate the issuance of Business Identification Number (NIB) for MSMEs, support MSME local products, and be able to increase literacy and training for MSMEs," concluded Coordinating Minister Airlangga. (dft/fln/map/fsr)

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Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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