G20 DEWG sets course for global digital economy, says minister

Jakarta, March 15, 2022 –

Over the past two years, digital economic activities have become one of the pillars supporting the world and Indonesia’s recovery from the COVID-19 pandemic.

Communications and Information Technology Minister Johnny Gerard Plate said Indonesia’s G20 presidency is a historic boost for the country to set the course for the development of the global digital economy.

“[The moment] strengthens the strategic role in navigating the development of the global digital economic landscape, he said at the kick-off meeting of the Digital Economy Task Force in Central Jakarta on Tuesday, March 15.

According to Minister Johnny, the discussions, which will take place from March to September 2022, are also important impetuses for Indonesia to guide dialogues between countries on issues of governance of the global digital ecosystem.

“Ministry of Communication and Informatics [MCI] who is in charge of DEWG will continue to streamline digital issues in working groups and engagement groups to bring greater collaboration and cooperation on digital issues,” he explained.

Under the theme “Recover Together, Recover Stronger”, the Indonesian G20 Presidency proposes three priority agendas, namely inclusive global health architecture, digital transformation and sustainable energy transition.

Digital transformation is an agenda discussed by at least 12 working groups and 10 engagement groups under Sherpa Track. The Digital Economy Working Group (DEWG) will discuss three priority issues, namely (1) connectivity and post-COVID-19 recovery; (2) digital skills and digital literacy; and (3) cross-border data flow and free flow of data with confidence.

“All are the main prerequisite issues for optimizing digital transformation, including the digital economy,” said Minister Johnny.

Equitable digital transformation

According to Minister Johnny, digital economic activity is showing significant growth in both empowerment and people participation, which encourages equitable digital transformation.

In 2022, there are 4.9 billion Internet users worldwide, including 204 million in Indonesia. There were 64.2 zettabytes of traffic and data consumption in 2020 and it is expected to triple to 181 zettabytes in 2025.

“Global data consumption is expected to grow with a CAGR of 26.9% from 2020 to 2025,” he explained.

Citing data from the Ministry of Commerce in 2021, he said that in Indonesia, the digital economy continues to grow with a gross value of goods amounting to 70 billion US dollars in 2021 and is expected to reach 315, 5 billion US dollars in 2030.

“Massive and rapid growth in data consumption will drive the development of data centers [cloud computing] and the growth of the global digital economy,” he said.

He pointed out that maximizing the potential of the digital economy through the development of cloud computing and ICT infrastructure can foster significant and inclusive digital economic growth.

“The Indonesian government, under the directive of President Joko Widodo, continues to roll out the development of upstream digital infrastructure [upstream ICT Infrastructure]including backbone networks for fiber optic, microwave link, broadband satellite and base transceiver station across the country,” he explained.

In addition, the Government is encouraging the development of the downstream digital infrastructure (downstream ICT infrastructure) with cloud computing technology. It is made so that the digital infrastructure can be used to support investment.

“Government continues to encourage government cloud developments [national data center] and private cloud [private data center] both by Indonesian domestic companies and foreign investment,” Minister Johnny said.

According to him, the development of upstream and downstream ICT infrastructure is a direct response to the progress and growth in the use of digital space.

“[The growth] takes place in the sectors of economics, finance, digital commerce, education technology, health technology and digital government,” he said.

Indonesia Advancement Showcase

Minister Johnny said the G20 DEWG will be a showcase for advancing Indonesia’s digital transformation as it will host various side events that will support three priority issues discussed at the negotiating table.

“One of them is the G20 Digital Innovation Network [DIN] which facilitates cooperation between government and private actors in digital innovation globally as a generator of global economic recovery from the COVID-19 pandemic,” he explained.

He said that at the Digital Transformation Expo (DTE), MCI will showcase a multi-sectoral, inclusive, empowering and sustainable digital transformation journey in Indonesia.

“DTE will convey an important message to the world that Indonesia’s digital transformation spirit is not broken amid the COVID-19 pandemic and is even growing and can be seen from birth. new unicorn startups during this pandemic, like like J&T Express, OnlinePajak, Xendit, Ajaib and Kopi Kenangan,” he explained.

Minister Johnny said that the DTE as a side event will be held in conjunction with the G20 summit in Bali in November.

He thanked all parties who participated in the preparation of the DEWG meeting.

Through the DEWG meeting, we will continue to facilitate the achievement of strategic agreements that will manifest in the DEWG’s suite of activities, he said.

He called on all parties to support and succeed the DEWG agenda in Indonesia’s G20 Presidency. “Let’s create a resilient recovery for Indonesia and the world by achieving inclusive, empowering and sustainable digital transformation. Recover together, recover stronger,” he said.

The event was attended by the Minister in charge of the coordination of maritime affairs and investment, Luhut Binsar Pandjaitan. Participants who presented online were the Coordinating Minister for Economic Affairs, Airlangga Hartarto; Foreign Minister Retno Marsudi; Houlin Zhao, Secretary General of the International Telecommunication Union (ITU); and Armida Salsiah Alisjahbana, Under-Secretary-General of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Other participants were the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Rebeca Grynspan; Chair and Alternate Chair of the Digital Economy Working Group (DEWG) 2022; and key MCI executives.

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