By Ian Liu, Tech For Good Institute

In the policy brief by the Center for Indonesian Policy Studies, titled “Indonesia’s Strategies for Joining the ASEAN Digital Economy Framework Agreement, it states that as the DEFA becomes the region’s springboard to achieve a thriving digital economy potential of $2 trillion by 2030, it can also establish conditions for a resilient digital society across the region by prioritising inclusivity, embracing sustainable digitalisation practices, and investing in talent and skills development.

However while ASEAN’s digital economy holds immense promise for growth and development, it’s crucial to consider the societal implications driving it.

Closing the Gap in the Digital Divide: Prioritising Inclusivity

Eyes are on ASEAN’s digital economy, as it holds immense potential to drive growth and development. However, this potential can only be fully realised and sustainable if it is made inclusive and accessible to all segments of the region. Data from the 2023 e-Conomy SEA report underscores the importance of digital inclusion for the underserved, particularly in non-metro areas where access to digital technologies and opportunities remains limited.

To address this challenge, concerted efforts between the public and private sectors, involving the community on the ground, are necessary. By directly engaging with the communities, governments and businesses—particularly the millions of micro, small, and medium-sized enterprises (MSMEs), which account for some 97% of all businesses in the region—can ensure that the process and outcome of digital initiatives are localised and fit-for-purpose. This entails being culturally sensitive, linguistically accessible, and addressing the unique challenges faced by different demographic groups. This means not only continuing the strengths of ASEAN’s existing policies and initiatives to expand access to digital infrastructure and technologies but, more importantly, considering the ASEAN DEFA to provision forward-looking support and resources to enable under- and unconnected communities and businesses to fully participate in the digital economy, thus establishing ASEAN as a stronger economic bloc. Initiatives such as providing digital literacy training, promoting affordable internet access, and fostering entrepreneurship among these underserved populations can help empower individuals and communities to leverage digital technologies for their socio-economic advancement.

Prioritising inclusivity in all aspects of digital development not only reduces the digital divide but also ensures that digital products and services are sustainable, as they are continuously designed with the needs of the users in mind.

Addressing Climate Issues: Embracing Sustainable Digitalisation

In addition to considering and providing for inclusivity across all areas of the digital economy, ASEAN member states must also take the opportunity to address the pressing climate issues exacerbated by rapid economic growth and digitisation. There are several ways to do this. For example, the Tech for Good Institute’s report, “From ‘Tech for Growth’ to ‘Tech for Good’,” shares the essentials for enabling sustainable digitalisation practices – commitment, cooperation, coordination, and co-creation. The report also highlights the potential of digital technologies to drive sustainable, equitable, and inclusive development. The ASEAN DEFA may consider leveraging and adapting these insights, with the aim for ASEAN member states to minimise their environmental footprint while maximising the positive impact of digital technologies on society and the environment.

Sustainable digitalisation can begin at any level by simply adopting (or with a little more effort, adapting) environmentally friendly practices – imagine if this were done throughout the digital economy value chain, from design and production to consumption and disposal. It is wise to note that sustainable practices are no longer just a cost center supported by larger businesses but have become economically viable and community-centric. These practices include leveraging renewable energy sources to power data centers, reducing e-waste through responsible recycling and disposal practices, and promoting digital solutions that contribute to environmental conservation and climate resilience. By integrating sustainability principles into digital development strategies, ASEAN member states can mitigate the environmental impact of digitalisation and contribute as a region towards global efforts to combat climate change.

Furthermore, sustainable digitalisation can create new opportunities for green innovation and entrepreneurship to drive economic growth. By investing in clean energy technologies, eco-friendly manufacturing processes, and smart infrastructure solutions, ASEAN can take the opportunity to position the bloc responsibly towards a managed or low-carbon economy. Moreover, by aligning digitalisation efforts with sustainability goals, the ASEAN DEFA can attract investment from environmentally conscious consumers and investors, further accelerating the shift towards a more sustainable economy and society.

Improving Digital Skills and Talent Development: Nurturing a Future-Ready Workforce

Finally, it is essential to continuously invest in digital talent and skills development to realise the potential of ASEAN’s digital economy. The ASEAN DEFA recognises the importance of human capital development in driving digital transformation and economic growth. However, digital skills and talent are a collective challenge for the region. There is hence a pressing need for concerted efforts to nurture and mentor a future-ready workforce equipped with the skills and competencies required to not only survive but to thrive in this digital age.

Enhancing digital skills and talent requires open collaboration between governments, educational institutions, industry stakeholders, and civil society organisations. This includes revamping education and training programs to incorporate technical best practices and processes, focusing on interoperability within technology and systems, and recognising standards and certifications.

Additionally, talent development should also improve soft skills such as cross-cultural communication, diversity, and inclusion in community collaborations, and fostering a culture of innovation and entrepreneurship. As automation and artificial intelligence reshape the nature of work, these soft skills will become increasingly important for individuals to remain relevant and employable. Therefore, ASEAN member states should consider policy reviews for improvements to encourage the exchange of digital skills and talent between countries – enabling individuals to cultivate a holistic set of skills to thrive in a diverse, cross-border professional environment and ensure that the ASEAN workforce remains competitive and adaptable in an increasingly digitised and interconnected world.

In conclusion, while Indonesia’s strategies to capitalise on its existing strengths in joining the ASEAN DEFA are well-founded and imperative, a comprehensive approach is crucial to tackle the challenges of inclusivity, sustainability, and talent development. By prioritising inclusivity, embracing sustainable digitalisation practices, and investing in talent and skills development, both Indonesia and ASEAN member states can fully unleash the ASEAN DEFA’s potential for the digital economy, paving the way for a more equitable, resilient, and prosperous future for their societies.