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    The Growth of E-Commerce in Indonesia Is Ordinarily Better than China


    BANDUNG - Minister of Communication and Information (Kominfo) RI Rudiantara said in the latest report released last August, the McKinsey research institute projected that Indonesia's e-commerce market value would reach US $ 65 billion or around Rp 910 trillion in 2022.

    "That figure is up eight times compared to last year which was worth US $ 8 billion or Rp 112 trillion," he said when giving a scientific oration in Unpad, Tuesday (09/18/2018).

    In the report titled The Digital Archipelago, McKinsey suggests that the evolution of online trade in Indonesia today resembles that of China in 2010. This figure is assessed based on electronic retailing (e-tailing) and internet penetration, Gross Domestic Product (PDB) per capita, retail spending, and urbanization.

    As a note, the growth of online trade in China rose from 3% in 2016 to 16% at present. So it is very possible for the Indonesian e-commerce market to grow at the same or faster speed, because Indonesian people are very fond of using smartphones, including social media.

    While in the broader context, the digital economy in Indonesia in 2020 is estimated to reach 130 billion US dollars or Rp. 1,831 trillion. With these achievements, the next two years the digital economy will contribute around 11% of Indonesia's gross domestic product (PDB).

    "But of course it's not as easy as turning your palm to achieve all of that. There are at least seven main issues in the digital economy that must be a common concern, "he said.

    The seven issues are: human capital, start-up funding, taxation, cyber security, ICT infrastructure, consumer protection, and logistics.

    According to him, in the same place a year ago, President Joko Widodo expressed his concern about human resources with digital skills.

    "His emphasis at that time was that we must anticipate facing rapid digital changes. We must dare to change. Over the years, our universities have not changed their faculties. Why don't we dare to change the faculty of Economics into a faculty or department of logistics management, retail management,or online store ? The world has changed. This is what we have to anticipate. otherwise, it is impossible for us to win competition with other countries. "

    The same thing happened with the Industrial Revolution 4.0 which rested entirely on digitalization. The Industrial Revolution 4.0 is feared to re-cut the amount of labor on a large scale as happened in previous revolutions. Robots, machines, and digital applications have begun to take over human jobs that require basic, mechanical, routine, or high-precision skills.

    "We will enjoy the blessing of demographic bonuses in the years 2028-2031, namely the condition in which the ratio of the number of labor force is in the range of twice that of the number of non-productive age. In those years the dependency ratio is projected to reach 44 percent, or every 100 productive people bear 44 non-productive people, "he concluded. (jo)

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