President Calls on Businesses to Close the Digital Gap

President Joko Widodo has called on Indonesian e-commerce players to be prepared for global competition, as he wants to see the nation move faster in closing the digital gap.

“In this digital era, the changes are swift. I was surprised when I visited Silicon Valley [in California]. As soon as I entered, I could feel that we are getting left behind,” the president was quoted as saying at the opening of the Indonesia E-Commerce Summit and Expo in ICE BSD in Tangerang, Banten, on Wednesday (27/04). In his speech, Joko reiterated his goal of improving Indonesia’s global e-commerce presence. The government’s target of establishing a $130 billion digital economy by 2020 is centered on e-commerce development and technology awareness.

In 2014, e-commerce transactions accounted for around Rp 150 trillion ($12 billion), with 72 million Indonesians actively using the Internet. The total number of Indonesians accessing the Internet has increased by 50 percent since 2013. Joko also hopes to see Indonesian entrepreneurs compete globally.

“I am thinking of increasing the numbers of developers and startups to match other the other countries that started years before us,” Joko said. He added that this might take the form of workshops, incubators and venture capital to form a digital ecosystem. Moreover, he also reminded entrepreneurs to improve their businesses, as one of the largest e-commerce companies in China recently expanded to Indonesia.

Indonesia has become a lucrative location for the global market and the government would support e-commerce to form a bridge between small and medium businesses and rural products nationwide, the president said.