Digital technology playing significant role in national trade: govt

Jakarta (ANTARA) – Digital technology is playing a significant role in national trade, and this is particularly evident in the growth of e-commerce transactions, according to an official with the Coordinating Ministry for Economic Affairs.

“The impact of technology on trade is reflected in e-commerce transactions and an increase in sales figures,” Muhammad Rudy Salahuddin, deputy for coordination of creative economy, entrepreneurship and competitiveness of cooperatives and small and medium enterprises at the ministry, said during the Indonesia Digital Conference, held virtually here on Tuesday.

Research conducted by Google, Temasek, and Bain & Company has shown that digital technology is playing a very important role in Indonesian trade, namely through e-commerce transactions, he added.

Indonesia is leading in Southeast Asia in terms of digital economy, which was valued at US$40 billion in 2019 and rose 11 percent to US$44 billion in 2020, he noted.

Google, Temasek, and Bain & Company have also predicted that the value of Indonesia’s digital economy transactions in 2025 will reach US$124 billion, he added.

Digital economy transactions in the country have been supported by the e-commerce network, which is projected to cross the US$32-billion mark this year and reach US$83 billion by 2025, he informed.

Meanwhile, daily transactions using digital technology or e-commerce have reached 4.8 million in Indonesia, up from the second quarter average of 3.1 million, he said.

Since the social distancing measures imposed by the government in March, 2020, the number of e-commerce’s consumers have shot up by 51 percent, he added.

Furthermore, the product demands of online shopping have also surged five to 10 times, thereby helping boost the national economy, he continued.

Digital technology has also contributed to several sectors, such as ride and food hailing (US$5 billion), online media (US$4.4 billion), online travel (US$3 billion), and e-commerce (US$32 billion), he said.

Source: Antara News