New studies: How advanced is the digital transformation in Indonesia?

Indonesia is one of the 20 largest economies in the world, with an economic growth rate of 5.31 per cent in 2022. However, the economy is still based on the extraction of natural resources and products from low-tech industries. How can the country rely more on knowledge and innovation and transform itself into an inclusive and knowledge-based economy?

The “Digital Transformation Landscape” study provides answers to these questions. It delves into Industry 4.0, digital agriculture and green technologies and provides a nuanced portrait of Indonesia’s digital transformation efforts. Comparative analyses with Nigeria, Turkey and Vietnam offer insights into Indonesia’s global position. By showing policymakers, citizens and the private sector the path to a future where innovation, resilience and inclusion are the foundation for prosperity, the study makes an important contribution to the National Development Plan 2025-2029.

Small and medium-sized enterprises (MSMEs) play a crucial role in strengthening the global and Indonesian economies, as evidenced by their significant contribution to GDP and their ability to create jobs. In the case of Indonesia, MSMEs have a market share of 61 per cent. Although the country has sufficient basic digital infrastructure, the actual utilisation of technology by MSMEs remains relatively low. How can the situation change? The study “Development of Digital Skill Path for MSMEs” addresses this question. It included multi-stakeholder discussions with digital technology training providers and an online survey to collect data on the training courses attended by MSMEs.

Read more about the Digital Transformation Landscape study and the Development of Digital Skill Path for MSMEs study.