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back to home | Jakarta, July 13th, 2022 | B20 Secretariat

B20-G20 Dialogue Focuses On Accelerating Digital Inclusion And Transformation 

Jakarta, July 13th, 2022

B20-G20 Dialogue: Digitalization Task Force


The B20 Indonesia Digitalization Task Force successfully held a hybrid G20-B20 dialogue forum, Thursday (7/7/2022) in Jakarta. This meeting discussed a number of recommendations prepared by the B20 Indonesia Digitalization Task Force during a series of panel discussions that had been carried out. 


In the dialogue, which was attended by global business leaders, the General Chair of the Indonesian Chamber of Commerce and Industry (KADIN)/B20 Indonesia Chairman Arsjad Rasjid, together with the Chair of B20 Indonesia Shinta Kamdani and the B20 Indonesia Digitalization Task Force Chair Ririek Adriansyah, gave their views and opened this forum. 


In addition, the Indonesian Minister of Communication and Informatics Johnny G Plate, Director General of Vocational Education at the Ministry of Education and Culture, Research and Technology Kiki Yuliati, Deputy for Entrepreneurship at the Ministry of Cooperatives and SMEs Siti Azizah and G20 Indonesia Digital Economy Working Group Chair Mira Tayyiba. 


In his keynote address, Minister of Communication and Information of the Republic of Indonesia Johnny G Plate appreciated the steps and recommendations proposed by the B20 Digitalization Task Force in the B20-G20 Dialogue. According to the Minister of Communication and Informatics, the world is currently being digitized and the digital economy will be bigger in the global market. 


"Although we are shown with enormous economic potential, there are challenges in front of our eyes that we must also face together, of course with public-private collaboration. One of them is regarding the digital divide, especially in developing countries," said Plate, Thursday (7/7/2022).  


The government, said Plate, was greatly helped by the discussion and recommendations from the B20 Digitalization Task Force, which is in line with the main vision of the G20 Indonesia Presidency to create an inclusive, empowering and sustainable digital ecosystem. 


In line with the Minister of Communication and Information, the General Chair of the Indonesian Chamber of Commerce and Industry who is also the Chairman of B20 Indonesia, Arsjad Rasjid, said that the world has changed due to technological disruption. Around 52 percent of companies have gone bankrupt or were acquired because they couldn't keep up with the digitalization trend. 


Arsjad said that in Indonesia, this also happened, but not only for large companies but also for MSMEs, which are the backbone of the Indonesian economy. There are 64.2 million MSMEs, which contribute to 61 percent of the GDP or more than IDR 8.5 trillion and provide employment for 97% of the workforce. 


"The Covid-19 pandemic has paralyzed almost 80-90 percent of MSMEs, especially during Community Activities Restrictions. But on the other hand, this pandemic is a blessing in itself for some MSMEs, especially those who have successfully transitioned to e-commerce or adopted digital sales," said Arsjad.


According to the BI 2021 survey, 20 percent of Indonesian MSMEs were able to mitigate the impact of the pandemic by digitizing their business and successfully utilizing online marketing media. This means, said Arsjad, through digitalization, Indonesia can achieve the next economic growth of up to USD 150 billion in 2025 as well as the potential to add 20 million net jobs by 2030. 


To achieve this goal, Arsjad said we must overcome the challenge of the digital infrastructure gap which is still not evenly distributed geographically and centered in big cities. The second challenge is the lack of digital skills or digital literacy which will make Indonesia face a shortage of 9 million skilled workers in the digital technology sector. 


Initiatives from KADIN Indonesia

To address this challenge, Arsjad said KADIN Indonesia has launched several initiatives to empower, educate, and accelerate digital literacy for businesses and MSMEs through the WikiWrausaha Platform and the Vocational Task Force which help the government change the national vocational education curriculum to apply digital skills relevant to the industry in the future. 


"We invite the business community to take part in investing in the development of digital infrastructure and connectivity throughout the country, support and provide input on the revitalization of national vocational programs to be more digital and provide internships in the industry," said Arsjad. 


Meanwhile in the opening speech, Chair of B20 Indonesia Shinta Kamdani said the B20-G20 dialogue was designed to be a platform for public and business collaboration to express their concerns and propose their solutions. This dialogue, said Shinta, is expected to produce something concrete. 


“I am very optimistic that our policy recommendations will bring tremendous contributions to society in the future. Throughout the process, the formulation of these policy recommendations was full of conflicting debates and arguments, which were able to encourage the diversity of thoughts and aspirations from more than twenty countries, with different circumstances and abilities,” explained Shinta.


Shinta believes that the policy recommendations that will be submitted to the G20 leaders will be the key to achieving significant improvements in the current digital era. The recommendations put forward clearly touch on several values ​​that we are very crucial and important, namely universal, sustainable, resilient, inclusive, and scientific. 


Furthermore, Shinta explained that the B20 Wiki platform for MSMEs is intended to be part of the global supply chain and the One Global Women Empowerment (OGWE) platform combines existing capacities and networks to accelerate efforts to empower women entrepreneurs and women in the world of work globally. 


"In the spirit of strengthening the relationship between the business community of G20 member countries and around the world, we created B20 Connect to facilitate network interactions and explore new business opportunities through trade and investment matching," explained Shinta. 


Shinta stated that as a business community, B20 Indonesia aims not only to create goals but also to provide progress and tangible benefits to encourage digitalization actions through collaboration and partnerships with the government and other stakeholders to achieve the aspired vision. 


Inclusive Policy Recommendations

B20 Digitalization Task Force Chair Ririek Adriansyah said that the task force he leads focuses on discussing efforts to overcome the digital divide. Ririek explained, the digital divide refers to the growth gap between those who enjoy the inclusion of the digital economy and the ecosystem, and those who are outside of digital reality.


In this context, Ririek continued, the B20 Digitalization Task Force wants to ensure that digitalization can drive future growth, as well as ensure that it can bridge the digital divide, which ultimately results in an inclusive digital transformation.


In addition, Ririek continued, the government is said to be ready to support digital inclusiveness to support one of the goals of the G20 implementation. Ririek conveyed that his task force made four recommendations. 


"First, encourage universal connectivity by making sure to encourage universal access to participate in the digital economy and government services ensuring inclusion and eliminating the digital divide," said Ririek.


Second, bringing breakthroughs for a sustainable and resilient digital economy, with the aim of accelerating the development of digital infrastructure. Third, ensuring a digital-ready mindset for individuals and MSMEs and enabling MSMEs to have access to digital platforms. Finally, promote and implement technology security standards that underlie practices that support enterprise efforts to protect networks.


Responding to the recommendations of the B20 Digitalization Task Force, the G20 Indonesia Digital Economy Working Group Chair Mira Tayyiba said that the main government Presidency was greatly helped by the collaboration of the business world and industry which contributed to ensuring that public policies including policies related to digital could benefit people at all levels of society. . 


“We believe this collaboration will enable the government to set fair and practical policies, and create a better policy space in the digital sector. The G20 Indonesia Digital Economy Working Group also encourages collaboration between innovation actors such as startups, venture capitalists, corporations and the government to support digital innovation," he explained. 


Recognizing the important role of the digital economy in many aspects of life, the G20 Indonesia Digital Economy Working Group is also committed to gaining more significant economic benefits from digitalization to achieve a resilient recovery.  


The highlight of this event was a panel session which was divided into 4 according to the discussion of policy recommendations that had been produced by the B20 Digitalization Task Force. The discussion, in addition to involving policy makers from members of the B20 and G20 forums, also involved top executives of multinational companies and government representatives from each member country. 


B20 Digitalization Task Force Deputy Chair Fajrin Rasyid, who was the coordinator of the panel discussion at this meeting, explained that the formulation of the task force recommendations has very strict principles and methods so that the policy recommendations submitted can be followed up, inclusive and have an impact. Digital transformation, said Fajrin, is very important, but there are some major challenges that we face today in terms of digital adoption worldwide. 


“We have arranged a panel session that will discuss further concrete follow-up of the policy recommendations together. This panel discussion session will also generate ideas to address the most pressing challenges today that will drive the direction of global economic policies," he said.


Representatives from India attended by Alkesh Kumar Sharma, Secretary of the Ministry of Electronics & Information Technology of India and Ananth Khrisnan, CII National Council Member/Executive Vice President and CTO at Tata Consultancy Services Limited, gave a statement regarding the importance of Indonesia's G20-B20 legacy for G20-B20 2023. 

 

 

This event is supported by:

 

Main Sponsors:

PT Astra International Tbk, PT Bayan Resources Tbk, PT Indika Energy Tbk, and Sinar Mas

 

Knowledge Partner:

Boston Consulting Group (BCG)

 

Network Partners:

Business at OECD, Global Business Coalition, International Chamber of Commerce, World Economic Forum, World Bank Group