Accelerating National Digital Transformation, KADIN Proposes Ministry of Digital

Firlie H Ganinduto – Deputy Chairperson for Communication and Information at the Indonesian Chamber of Commerce and Industry

Solo, 29 March 2022 – One of the primary goals that the Indonesian government hopes to achieve while serving as the G20 Presidency in 2022 is digital transformation and inclusiveness. During the pandemic, the fast spread of digitization around the world has made digital inclusion an unavoidable goal. Moreover, digitization affects not only economics but all aspects of society, including government administration and public services.


In the Dialogue Forum I themed the role of the government in supporting the digitization of the Indonesian territory at the B20 Indonesia side events, namely the Digitization of the Archipelago Expo and Summit (DNES) 2022, Firlie H Ganinduto, Deputy Chairperson for Communication and Information at the Indonesian Chamber of Commerce and Industry, said the central government needs to follow other countries that already have a Ministry that is focused on developing digitization.


“At the moment, digital licensing is handled separately. From the initial process to regulations, the Digital Ministry is expected to be able to handle all digital developments, whether they are related to the economy, public services, or state administration. Countries such as China, Thailand, and France have developed it,” Firlie remarked.


Firlie believed that the government is currently focused on digital transformation, particularly the digital economy, which has enormous potential in the future. It is estimated that by 2025, the digital economy will contribute around 22% to the global economy, with a market value of 120 billion dollars.


“However, it appears that a separate ministry dedicated to digitalization issues is required in order to stimulate even more massive digitization in all areas of life. There has to be a ministry dedicated to dealing with the digitization transition in the regions if it is to be accelerated,” he stated


If the government creates a digital ministry, Firlie believed it should be entrusted with fundamental governance of the digital and creative economy, as well as public services with complicated difficulties. This governance is necessary so that the government considers all elements of digital transformation, including the economy, consumer protection, and labor security.


“The nuance has so far been used to address the issues of transition in the 4.0 age. However, the national grand plan for the digital economy sector, as well as state administration or high-quality digital public services, must be prepared and are what we are waiting for,” Firlie said.


Firlie also hoped that the 2022 DNES forum, a side event to the B20 Indonesia 2022, would bring together the digital industry and local governments to help communities that have yet to be connected to the digital connection. He also hoped that the Ministry of Home Affairs will continue to push the use of the internet for all service operations in the future. This, of course, must be accompanied by the creation of a massive, high-quality, and equitable technology, information, and communication (ICT) infrastructure, as well as skilled human resources trained in digital literacy.


The major obstacle in digitizing services, according to Jamalul Izza, chairman of the Indonesian Internet Foundation (GIIF), is digital infrastructure. This infrastructure includes all physical devices, computerized devices, methods, systems, and procedures required for the use of data. Fiber optic cable technology, international or intercity backbone networks, data centers, internet exchanges, wireless networks, cellular technology, and other technologies also fall under this category.

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