The Role of Digital Platforms in Indonesia’s Economic Recovery

TFGI’s Indonesia Launch Dialogue on 13 January 2022 explored the opportunities and challenges posed by this rapid adoption of the Platform Economy, and its potential to contribute to the economy's recovery from the Covid-19 pandemic.

Indonesian consumers have embraced digital platforms. 81% of mobile internet subscribers have adopted digital payments via mobile wallets as of May 2021, the Tech for Good Institute’s (TFGI) Platform Economy report shows. This adoption is higher than in other countries in the region, such as Singapore, Vietnam and the Philippines. 

TFGI’s Indonesia Launch Dialogue on 13 January 2022 explored the opportunities and challenges posed by this rapid adoption of the Platform Economy, and its potential to contribute to the economy’s recovery from the Covid-19 pandemic. 

Speakers included: 

  • Dr Bambang Susantono, Vice President, Knowledge Management & Sustainable Development, Asian Development Bank, and Advisory Board Member, Tech for Good Institute 
  • Edy Widjaja, Partner & Lead, Southeast Asia Financial Services Practice, Bain & Company
  • Dr Bambang Brodjonegoro, Chairman, Indonesia Forum Foundation
  • Ridzki Kramadibrata, President, Grab Indonesia
  • Mira Tayyiba, Secretary-General, Ministry of Communication and Information Technology of the Republic of Indonesia 

Here are three takeaways from the dialogue:

  • Both network infrastructure and digital literacy are needed to increase digital accessibility.  As of 2020, 12,500 villages across Indonesia do not have internet connectivity, according to the Indonesian Internet Service Providers Association. Public-private collaborations will be critical to boost their development, alongside the government’s ongoing investments in network infrastructure. Tier two and three cities require further attention to be adequately equipped with the infrastructure and digital literacy to participate in the platform economy, alongside their companions in tier one cities like Jakarta and Surabaya.
  • Indonesia must be vigilant against the growth of inequality. With the Covid-19 pandemic, economies risk falling into K-shaped recovery, in which businesses with smaller capital lag behind those with greater capital. With this looming risk of an economic catastrophe, the participants challenged the platform economy to support the sustainable growth of MSMEs, which were disproportionately hurt by the pandemic. While platforms are enabling MSMEs to expand their reach online, there remains the risk of a “digital paradox”, where a shift to digital widens rather than reduces social and economic gaps between those adopting digital technology and those who have not. 
  • As digital adoption continues to expand in Indonesia, three key areas require work to ensure a sustainable transition: talent, competition and data protection. Participants highlighted the need to strengthen digital talent, calling for public and private sector investment in the labour force and SMEs – which accounted for 97% of employment, based on data from the Indonesia Government as of 2018. In addition, participants cautioned that the rapid growth of digital businesses could result in a winner-takes-all situation, stifling competition and resulting in monopolies. Personal data and consumer protection were also discussed as new and necessary focus areas in the digital economy, with others suggesting that collaborations between platforms and institutions will benefit businesses and consumers alike in the data safety realm. 

Catch up on the dialogue below:

(English) The Role of Digital Platforms in Indonesia’s Economic Recovery: Dr Bambang Susantono

(English) The Role of Digital Platforms in Indonesia’s Economic Recovery: Ming Tan

(English) The Role of Digital Platforms in Indonesia’s Economic Recovery: Panel Discussion

(English) The Role of Digital Platforms in Indonesia’s Economic Recovery: Mr. Edy Widjaja

(Bahasa) The Role of Digital Platforms in Indonesia’s Economic Recovery: Dr Bambang Susantono

(Bahasa) The Role of Digital Platforms in Indonesia’s Economic Recovery: Ming Tan

(Bahasa) The Role of Digital Platforms in Indonesia’s Economic Recovery: Panel Discussion

(Bahasa) The Role of Digital Platforms in Indonesia’s Economic Recovery: Mr. Edy Widjaja

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Mouna Aouri

Programme Fellow

Mouna Aouri is an Institute Fellow at the Tech For Good Institute. As a social entrepreneur, impact investor, and engineer, her experience spans over two decades in the MENA region, South East Asia, and Japan. She is founder of Woomentum, a Singapore-based platform dedicated to supporting women entrepreneurs in APAC through skill development and access to growth capital through strategic collaborations with corporate entities, investors and government partners.

Dr Ming Tan

Founding Executive Director

Dr Ming Tan is founding Executive Director for the Tech for Good Institute, a non-profit founded to catalyse research and collaboration on social, economic and policy trends accelerated by the digital economy in Southeast Asia. She is concurrently a Senior Fellow at the Centre for Governance and Sustainability at the National University of Singapore and Advisor to the Founder of the COMO Group, a Singaporean portfolio of lifestyle companies operating in 15 countries worldwide.  Her research interests lie at the intersection of technology, business and society, including sustainability and innovation.

 

Ming was previously Managing Director of IPOS International, part of the Intellectual Property Office of Singapore, which supports Singapore’s future growth as a global innovation hub for intellectual property creation, commercialisation and management. Prior to joining the public sector, she was Head of Stewardship of the COMO Group and the founding Executive Director of COMO Foundation, a grantmaker focused on gender equity that has served over 47 million women and girls since 2003.

 

As a company director, she lends brand and strategic guidance to several companies within the COMO Group. Ming also serves as a Council Member of the Council for Board Diversity, on the boards of COMO Foundation and Singapore Network Information Centre (SGNIC), and on the Digital and Technology Advisory Panel for Esplanade–Theatres on the Bay, Singapore’s national performing arts centre.

 

In the non-profit, educational and government spheres, Ming is a director of COMO Foundation and Singapore Network Information Centre (SGNIC) and chairs the Asia Advisory board for Swiss hospitality business and management school EHL. She also serves on  the Council for Board Diversity and the Digital and Technology Advisory Panel for Esplanade–Theatres on the Bay, Singapore’s national performing arts centre.

 

Ming was educated in Singapore, the United States, and England. She obtained her bachelor’s and master’s degrees from Stanford University and her doctorate from Oxford.