Indonesia: Indonesia’s digital innovation: progressing on the island of Java, limping in the eastern region

- in World News


Digital innovations like Go-Jek’s online transport service , Tokopedia online trading and public “protest” services REPORT! will not be enjoyed by the community as long as they do not have access to adequate information and communication technology and equipment. Good infrastructure does not guarantee that this digital innovation can be enjoyed by everyone if they do not understand how to use a laptop or smart phone. The Central Bureau of Statistics shows significant inequality between western Indonesia and eastern part of Indonesia in access to technology and technical capabilities of the use of information and communication technology (ICT). At least four provinces in Java have a high ICT Development Index (IP-ICT) and are above the national IP-ICT. In contrast, the five provinces with the lowest IP-ICTs are all located in the eastern part of Indonesia. Therefore, the reports we make show urgency for governments, as key actors, and assisted by communities, universities and business groups to trim the digital divide. Innovation opens opportunities and cuts bureaucracy Digital innovation allows people to access the resources they need, be they information, opportunities, and capacity building. The increasingly rapid flow of information, supported by increasingly advanced technology, allows people to access the desired information according to their individual tastes. It is undeniable that the development of digital innovation in Indonesia has encouraged efficiency in living everyday life. The presence of various online transport and e-commerce applications is an example of digital innovation that acts as an intermediary between people as consumers and service providers. This innovation makes the interaction process between the two sides more efficient because it is done online. The buyer does not need to spend more effort to visit the seller, and the seller can manage his working time more flexibly. In a slightly different example, the presence of financial technology services such as Amartha allows people who have difficulty gaining access to conventional banking to obtain business capital more easily. The standard of living of the people can also increase for the better thanks to the presence of digital innovation. In the context of public services, digital innovation also opens public communication taps with government and enables community participation in planning, implementation and implementation of development in Indonesia. The presence of the REPORT app ![tooltip id=”4500c2f113202943ff1ae30d00c9d4ac”] [/tooltip](Aspirations and Complaints Service Online Rakyat) become one example of digital innovation that allows the community to convey aspirations to the government. This will have an impact on a more transparent, accountable, and participatory government. Facilitate but born a new imbalance The development of ICT gave birth to various innovations that have now been present in various aspects of Indonesian society life. The Internet of Things Technology enables devices to be controlled via the Internet. Artificial intelligence , as a system that can think and act like humans, has the potential to replace the role of customer service in serving customer complaints. While blockchain technology enables the information to be stored securely so as to encourage transparency and eliminate the role of intermediaries. Although it has the potential to realize more inclusive development, digital innovation in Indonesia also potentially exacerbates the imbalance that is still happening. One indication can be seen from changes in the landscape of actual employment are increasingly open, specific, and diverse, but require the ability to use higher technology. The lack of access and the level of capability of technology in Indonesia, especially between western and eastern Indonesia, makes the benefits of various digital innovations can only be enjoyed by people in the western region. On the contrary, the people of eastern Indonesia will be left behind because they have not had the same opportunity in terms of access and digital knowledge. Digital innovations that are mushrooming in Indonesia can only be enjoyed by people who have access and adequate ICT resources. In fact, the existence of qualified ICT infrastructure is still limited in Java and Sumatra, where four out of five internet users in Indonesia are on both islands. In addition, rural communities that already have smartphones and gained new internet access are in the range of 42-48 percent, far below the urban community that smart phone penetration and internet access has reached 71-72 percent . Not only that, new internet access can be enjoyed 21 percent of lower economic class society, very lame when compared with internet penetration in upper-class society reached 93 percent. On the other hand, there are still many Indonesians who do not have sufficient technical skills to be able to use various ICT tools. By 2017, Indonesian internet users have reached 143.26 million people , but the utilization of ICT by the people of Indonesia is still dominated by instant message exchange activities (89 percent) and social media (87 percent). That is, ICT has not been fully utilized by the community for the improvement of competence or other productive activities. This condition makes not all people get equal opportunity to access information, capacity building, to convey aspiration to government. Only people with access to and adequate ICT resources can enjoy the benefits of digital innovation in Indonesia. Equity of basic digital infrastructure Therefore, we emphasize the importance of equal distribution of basic infrastructure coupled with digital literacy . Efforts to equalize the infrastructure have become the priority of the Indonesian government, especially through the Palapa Ring project . While many civil society took a role in initiatives such as the National Movement of Digital Literacy . For greater perceived impact, local governments also need to take the initiative to adopt similar programs. We propose three agendas of change to maximize the potential of digital innovation in Indonesia. First , a comprehensive regulatory framework and attention to various aspects. Currently, Indonesia still does not have the same standards and tend to stutter in dealing with digital innovations such as online transportation and financial technology. In addition, Indonesia also does not have a clear regulation related to the protection of personal data. This shows how Indonesia is still lagging behind other ASEAN countries such as Malaysia and Singapore . Second , the multistakeholder approach which enables the involvement of each relevant actor (academician, business, government and civil society) according to their respective capacities. The vision of Indonesia’s digital economy needs to be aligned with the role of the Ministry of Research, Technology and Higher Education and the academic sector in order to provide digital talent that suits the needs of the digital industry. Third , a clear control mechanism in guarding digital innovation in Indonesia. Indonesia’s current digital economic policy is still structured overlap by various institutions without the coordination of a special institution. This is in contrast to other ASEAN countries that have moved quickly to establish specialized institutions responsible for digital economic issues, such as Thailand or Malaysia . Looking at global trends, digital innovation that is happening in Indonesia is a necessity. What must be ensured is how this innovation becomes a more inclusive developmental driver, rather than making wider inequality.[tooltip type=”box” html=”Input Your Content Here” box_background_color=”#eeeeee” box_opacity=”0.95″ box_padding=”10″ box_border_color=”#3F3F3F” box_border_width=”1″ box_border_radius=”0″ id=”4500c2f113202943ff1ae30d00c9d4ac” /]

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