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Equitable Business Digitalization in Indonesia

Jakarta, 01 April 2024

Business digitalization in Indonesia has experienced rapid development in recent years. However, there is still a significant gap between Java Island and areas outside Java Island. Based on data from BPS, West Java, East Java, and Central Java are the three provinces with the highest percentage of business digitalization in Indonesia.

The question is, how can we equalize business digitalization in order to increase economic circulation throughout Indonesia? One way that can be done is to activate not only large e-commerce platforms such as Shopee and Tokopedia, but also utilize various e-commerce platforms according to the needs of micro and informal businesses.

However, there are several obstacles that hinder equitable digitalization in Indonesia. One of the reasons is the lack of digital education. The Indonesia E Commerce Association (idEA) has conducted an outreach in Eastern Indonesia and found that the majority of smartphone users still use the device only as a communication tool through WhatsApp and have not utilized it for other purposes, especially in developing their businesses.

The Ministry of Trade (Kemendagri) has set the main priorities in the equitable distribution of business digitalization in Indonesia. The top priority is infrastructure, followed by digital knowledge. Adequate infrastructure will ensure easier access for businesses in different parts of Indonesia. In addition, digital knowledge is also very important to reach businesses that are still unfamiliar with or do not fully understand the potential of digitalization.

To achieve better equity in business digitalization, there needs to be synergy between the government, businesses, and the community. The government can provide programs and subsidies to build digital infrastructure in unreached areas. In addition, the government can also increase access to digital education by organizing training and workshops for businesses in the region.

Businesses also need to take the initiative to harness the potential of digitalization in running their businesses. They need to learn how to use e-commerce platforms that suit their business needs and characteristics. In addition, they also need to improve their digital knowledge and skills in order to optimize the use of technology in doing business.

The community also has an important role in the equitable distribution of business digitalization. They need to become active consumers in shopping online on e-commerce platforms managed by businesses outside Java. Support from the community will provide encouragement for business actors to continue to develop their businesses by utilizing digitalization.

Equitable digitalization of businesses in Indonesia is an important step to increase the overall economic turnover. With adequate infrastructure and sufficient digital knowledge, it is expected that businesses throughout Indonesia can grow and develop through the use of digital technology. The synergy between the government, business actors, and the community will be the key to success in achieving sustainable digitalization equity in Indonesia.

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