A few years ago,
lecturer Novistiar Rustandi wondered how he could help more
Indonesians earn university degrees so that they can get better
jobs.
He knew that a degree is now
compulsory to get a decent job. But many of those who want to get a university
degree don’t have the time or access to attend classes.
With a few colleagues,
Novistiar developed an e-learning platform to help solve this problem. They
established a digital startup, offering services for universities to develop
online courses.
“Lecturers can now teach from
their homes and students have the flexibility to study at their own
pace,” explained Novistiar.
In recent years, more startups
have sprung in Indonesia seeking new opportunities in the digital economy - the
issue highlighted by the World Bank’s 2016 World Development
Report, titled Digital Dividends.
“Digital technology is a new
platform of resources,” said Philips Vermonte, Executive Director of the Center
for Strategic and International Studies, where the Jakarta launch of the
report was held. “Indonesia should really start to think of how to take advantage
of this opportunity.”
Digital technology has grown
rapidly but many have not fully benefited from these developments. Four billion
people globally still lack internet access. Yet the potential
is enormous, since the internet is more evenly spread than income.
According to the report, in
order to reap the digital dividends, internet access must be made
universal, affordable, open, and secure. Otherwise the dividends will be
enjoyed only by a few.
“At the moment, digital technology
in Indonesia mostly benefits the middle class who have internet access and
companies who provide services that are accessible online,” said Nadiem
Makarim, CEO of Gojek Indonesia, an app-based motorcycle taxi
service which delivers goods and offers rides to commuters. “For the
digital economy to be more inclusive, the government should help make internet
access available for more people.”
" Digital technology is a new
platform of resources. Indonesia should really start to think of how to take
advantage of this opportunity. "
Philips Vermonte
Executive Director of the Center
for Strategic and International Studies (CSIS)
“We are in the process of
developing a fiber optic network to connect all districts in the country,” said
Rudiantara, Minister for Communication and Information Technology. “We plan
that by 2019, we will have a reliable internet connection across the country
through the Palapa Ring.” 'Palapa' refers to the Palapa Oath, made in the
14th century, to unite the islands of the archipelago.
But infrastructure alone is not
enough. A thriving digital economy requires a strong 'analog' foundation,
comprising of enabling regulations, skills and institutions that are
suited to the needs of each country.
“The digital economy will face
similar challenges as with the ‘analog’ economy, which Indonesia still hasn’t
really managed to overcome: weak infrastructure, murky regulations and
poor planning,” said Ilham Habibie, Head of the National Information Technology
and Communication Board.
Tensions over regulations are not
new in Indonesia. Recently the capital of Jakarta saw large demonstrations
by taxi drivers demanding a ban of online taxi services, arguing that
the unregistered services violate local regulations.
“Clear regulations are
important,” said Mari Pangestu, who served as both Minister of Trade
and Minister for Tourism and Creative Economy. “But they should not be regulations
that will become a burden and prevent anything from happening.”
OPINION
Technology has been growing,
including in Indonesia. Lots of entrepreneurs who have seen this as an
opportunity, like gojek and grab engaged in online transportation. Even gojek
had already penetrated the world of other services like package delivery,
delivery of food and others. However, the benefits of the digital era have not
been felt by all people. This was probably caused by social inequalities in terms
of knowledge. Many were not able to access the internet. Or maybe they can
access it but they do not know how to utilize the maximum.
Many challenges for Indonesia to
be able to survive in the world of the digital economy. As we know, these days
happen on a large scale demonstration conducted by taxi drivers who insist on
the closure of digital/online transport services because it is considered
illegal. In my opinion, the real problem is not in the company's legal or
illegal. Because some of these companies are already taking care of the
legality of their business. And if the legality had been obtained, I'm not sure
the problem is considered completed. As such, the problem is too much price gap
between analog/offline and digital/online transportation. Online transportation
clearly has more value by presenting easy access for consumers and that is
their advantage. But besides that, the rate offered was far more affordable
than the online transportation services so that automatically the market will
be more likely to choose online transportation services. Therefore, it needs a
clear regulation of the government to determine a reasonable price and agreed
upon by both parties of both employers of online transportation services as
well as offline. Even the most liberal countries in the world like America was
having a clear regulation for their market position. Liberal does not mean
indefinitely. We still needed regulations regarding limits to regulate the
continuity of the market.
SOLUTION
1. Education
Education in Indonesia have only
emphasis on theory rather than applied knowledge or skill. So many young
Indonesian who holds Bachelor degree, despite they still being unemployed
because of lack of skills and expertise specifications. To take advantage of
the digital economy is necessary youths who dare to take the opportunities that
exist to use into a new market where producers and consumers meet in a digital
platform. Beside to the lack of effective system of education in Indonesia,
there're gaps of knowledge also affect the digital economy in Indonesia. So
many people in Indonesia who have not been able to be open with the digital
economy and prefer to survives in analog. That is because of lack of knowledge
about how to utilize this digital era.
2. Regulation
Government regulations are very
important for the development of the digital economy in Indonesia for the
better future. But that does not mean regulation is everything. Digital economy
and regulation can go hand in hand. Along with the development of the digital
economy, government regulations will also be developed following the
development of their cases. We recommend that the government began to act
quickly to make regulations related ideal growing digital economy. As we know,
somehow the regulations in Indonesia are still overlapping. It is expected that
the government may make regulations which are support the digital economy. It
will help the digital startups in Indonesia.
