Redefining Indonesia's Digital Economy

Militcyano Samuel Sapulette and Pyan Muchtar
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Militcyano Samuel Sapulette: Economic Research Institute for ASEAN and East Asia (ERIA)

No PB-2022-06, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: The Indonesian digital economy is the largest and most attractive investment destination amongst the Association of Southeast Asian Nations (ASEAN) Member States (AMS). The sector has grown more than fourfold in the last 4 years and has supported other sectors. Amid the exponential growth, digital businesses are facing what is called a 'tech winter' in which startups are likely to experience slowdowns or even bankruptcy. In addition, although the digital transformation helps businesses improve productivity and drive economic growth, it has consequences for employment and wages, particularly for less skilled workers. While the potential of the digital economy must be continuously harnessed, some key initiatives need to be implemented to mitigate its negative effects.

Pages: 5 pages.
Date: 2023-01-10
New Economics Papers: this item is included in nep-ict and nep-sea
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Citations: View citations in EconPapers (2)

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