President Watanabe: With Digital Economy, Indonesia’s Future is Promising

ERIA’s President, Tetsuya Watanabe, spoke at the high-level panel during the Indonesia Economic Outlook Seminar with the theme ‘Optimism in Strengthening National Economy Amidst Global Dynamics’ held by the Coordinating Ministry for Economic Affairs of Indonesia. Other high-level panelists including the Minister of Energy and Mineral Resources, Arifin Tasrif; the Vice Minister of State-Owned Enterprises, Kartika Wirjoatmodjo; and the Rector of the University of Indonesia, Prof Ari Kuncoro. The panel discussion was moderated by Andini Effendi, a renowned Indonesian journalist.

The panel, titled ‘Policy Strategy to Support a Sustainable Economic Growth’ discussed a wide-range of issues, from energy transition and the new economic model to human resources development and digital innovation.

President Watanabe emphasised the importance of digital innovation in supporting sustainable economic growth for Indonesia. He highlighted ERIA’s research, which suggests that Indonesia’s digital transformation agenda is expected to increase the country’s competitiveness, improve manufacturing performance, and improve productivity.

Moreover, President Watanabe highlighted Indonesia’s position as one of the largest markets for start-up investments in the region. Simultaneously, the country boasts a rapidly growing online market, with ERIA’s research predicting an average annual increase of 25% from 2021 to 2025.

Addressing sustainability, President Watanabe stated, ‘One critical challenge for Indonesia is how to integrate sustainability into the digital economy to ensure that digital innovation becomes sustainable and inclusive. Digitalisation and sustainability can flourish together, and it could help Indonesia achieve its twin goal of economic growth and net-zero target.’

In conclusion, President Watanabe underscored the need for Indonesia to support the development and application of new technologies to support its economic growth and net-zero target.

Minister Airlangga Hartarto, in his opening speech, said that amidst global uncertainty, the fundamentals of Indonesia’s economy are well-maintained and well-prepared. The inflation rate remains relatively low and under control, while economic growth exceeds the global average.

In his keynote address, President Joko Widodo expressed optimism about the Indonesia Economic Outlook for 2024, citing economic progress and a stable domestic political situation, even amid the upcoming general election in 2024. He also emphasised the necessity for stronger public-private partnerships and the strengthening of the digital economy.

This seminar drew high-level participants, including ministers, ambassadors, high-ranking government officers, CEOs, academia, heads of international organisations, and media leaders.