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Darmin Nasution: "Digital Economy to Support Entrepreneurship"

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Submit by denok on January 11, 2017 | Comment(s) : 0 | View : 884

Dr. Darmin Nasution
Dr. Darmin Nasution
Coordinating Minister for the Economy Affairs of Republic of Indonesia Dr. Darmin Nasution delivered, "The world, including Indonesia, entering the era of digital economy, namely development of information technology as a support for economic activities. He delivered this in front of thousands of Brawijaya University academic communities, Thursday (5/Jan/2017), in a Senate open meeting to celebrate the 54th Brawijaya University anniversary. On the occasion, he delivered his scientific oration titled "Digital Economy to Support Entrepreneurship".

Indonesian strategy in developing digital economy, according to Darmin, is understood as Indonesian economic development in digital era. Therefore, development should be conducted in overall/ecosystem and inclusive, involving all parties and all communities where digital as a platform allows the creation of added value. "Therefore adjustments to policies are necessary to use digital maximally," he said.

In 2020, the government of Indonesia has targets to put Indonesia as the largest digital economy country in South East Asia. At the time, will be created 1,000 digital start-ups with business valuation around USD 10 Billion, e-commerce growth reaches 40% annually and e-commerce transaction reaches USD 130 Billion. The focus of Indonesian digital economy development will be based on UMKM (Usaha Mikro Kecil Menengah/Small and Medium Enterprises) and also start-ups.

Among strategies on Indonesian digital-economy development are encouraging extension and improvement of economic activities efficiently and globally connected. In addition, conducted also efforts to encourage creation, innovation and invention on new innovation among young generations. Furthermore, the government also tries to give certainty and simplicity in doing business by using e-commerce.

Digital-based transactions, according to Darmin should be used as a tool on equalization of economic growth. Inclusive movement on digital transaction is an effort in empowerment of Indonesian digital economy power. In January 2016, recorded that Indonesian mobile cellular reaches 315 million, 126% of the total population. Of the number, 51.8 percent are active internet users.

In 2015 was recorded that numbers of Small and Medium Enterprises reached 59.3 million with contribution around 57.6% of the total Gross Domestic Product.

Compared to conventional model, e-commerce has several advantages for consumers like faster access anywhere and anytime, many choices and could have price comparison quickly. Meanwhile for merchants, e-commerce could make supply chain more efficient, faster product marketing and promotion, market expansion and also cheaper transaction cost. The government support given to business actors were such as in form of infrastructures like a million .id domain and science techno-park and also aggregator/consolidator in distribution.

At least there are five life cycles in start-up business including idea, seed, early, mid and late. "90% of our start-up have failures in idea and seed cycle. Therefore, both stages become funding targest," Darmin said. In both steps, private investors do not want to go since they have not seen the forms and still in ideas, thus it was too risky and will give higher risk of default.

E-commerce roadmap principles, delivered by Darmin were including openness to all parties, legal certainty and protection towards national, SMEs and start-up interests.

Furthermore, in his presentation Darmin gave details of Presidential Decree draft on e-commerce which contained of such matters as consumer protection, establishment of executive management, human resources education and development, communication infrastructure, logistics and cyber security. [Denok/Humas UB/trans. Denok]

 

 

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