FM Retno Underlines the Importance of Digital Transformation to Support Global Economic Recovery

Jakarta, 15 March 2022 – With a 15.5% contribution to world GDP, digital economy has the potential to support global economic recovery. Therefore, Indonesia’s G20 Presidency places digital transformation as one of its priority sectors. “International collaboration and cooperation must continue to be encouraged so that digital transformation can contribute to global economic growth, including for developing countries,” said Minister for Foreign Affairs, Retno L.P. Marsudi, in her remarks at the Digital Economy Working Group (DEWG) Kick-Off Meeting on March 15, 2022.

Digital Economy Working Group (DEWG) is a working group under G20 Sherpa Track held for the first time under Indonesia’s Presidency. DEWG aims at discussing collaboration on digital connectivity, digital entrepreneurship, reducing the digital skills gap, and data flow. The Kick-off meeting is the start of DEWG series of meetings, with the main theme of “Achieving a Resilient Recovery: Working Together for a More Inclusive, Empowering, and Sustainable Digital Transformation”.

FM Retno identified three focuses of international cooperation that digital economy stakeholders in the G20 need to pay close attention to. First, international collaboration to promote inclusiveness and bridge the global digital divide. FM Retno noted that 96% of the world’s population who are not connected to the internet are from developing countries. She called on the G20 to become a driving force for global investment to build quality and affordable digital infrastructure.

Second, strengthening global cooperation in digital literacy, which is crucial to help people fully benefit from digital transformation. According to her, the two sectors that need to be targeted for capacity building are local MSMEs and the government. “International cooperation is very much needed to facilitate the strengthening of digital capacity for developing countries, including in the financing aspect,” she continued.

Third, international cooperation to build a secured digital ecosystem. Estimated potential loss from global data breaches can reach up to USD 5 trillion by 2024, thus the digital security aspect remains a big question. For this reason, FM Retno said that privacy guarantees, secure payment mechanisms, and clear consumer protection are important to rebuild trust. The discussions in DEWG, she believes, will be an important beginning to strengthen the future global digital order and encourage the sustainability of the discussion of digital economy as a central issue in G20.

The Digital Economy Working Group (DEWG) Kick-Off Meeting is an event facilitated by the Ministry of Communication and Information of the Republic of Indonesia. This initial meeting was attended physically by the Indonesian Minister of Communication and Informatics, and virtually by the Indonesian Minister of Foreign Affairs and the Coordinating Minister for the Economy of the Republic of Indonesia. The series of meetings in DEWG will lead to the Digital Economy Ministers Meeting (DEMM), which will be held on September 1-2 in Bali

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