Indonesia Ranks First in Digital Economy Adoption

According to a McKinsey report titled "Digital India: Technology to transform a connected nation," Indonesia ranks first as the country with the fastest growth in adopting the digital economy. The growth index of digital economy adoption is calculated based on the level of digital application by individuals, businesses, and the government across three pillars: digital foundation (availability and download speed), digital reach (data consumption per user), and digital value (usage in digital payments or e-commerce). Indonesia scored 99%, followed by India at 90%, China at 45%, and Russia at 44%.

Digital economy adoption presents an opportunity for Indonesia by 2025. Considering the increase in economic growth, the digital economy can increase labor participation and productivity in Indonesia. The digital economy contributes to connecting job demand with labor providers through online platforms more efficiently than traditional methods.

The digital economy can also boost productivity by up to US$120 billion per year. Estimates of digitalization usage include increases in the manufacturing sector (US$34 billion), retail (US$24.5 billion), transportation (US$15.5 billion), mining (US$14.8 billion), agriculture (US$11 billion), media (US$7.9 billion), health (US$6.6 billion), the public sector (US$4.8 billion), and finance (US$1.8 billion).

(Read Databoks: "Inilah Potensi Ekonomi Digital Indonesia")