Coordinating Ministry for Economic Affairs, Atma Jaya and Microsoft Form a Digital Alliance Working Group to Empower Indonesia’s Digital Economy

 |   Indonesia News Center

Jakarta, 17 February 2022 – Along with Indonesia’s vision to become the leading digital economic country in Southeast Asia, the optimization of technology usages, such as cloud computing and artificial intelligence, is highly important. Therefore, the Coordinating Ministry for Economic Affairs (CMEA) of the Republic of Indonesia, Atma Jaya Catholic University, and Microsoft Indonesia are collaborating to initiate Digital Alliance Working Group. This marks a strategic partnership between the government, academia, and the private sector to accelerate the realization of Indonesia’s digital economy agenda through the use of technology. 

This working group will spearhead a collaborative platform that actively involves more stakeholders to exchange insights and experiences on the use of technology in recovering Indonesia’s economy – especially post-COVID-19. These stakeholders include leaders in government, industries, civil society organizations, associations, and state-owned enterprises. 

Rizal Edwin, Digital Economy Deputy Assistant, Coordinating Ministry for Economic Affairs of the Republic of Indonesia said, “In order to boost the acceleration of digital economic development, we need tangible efforts. One of them is through collaboration and synergy among the government, technology company, which in this case is Microsoft Indonesia, and academician, such as Atma Jaya Catholic University.” Therefore, the adoption of progressive and digital-native policies becomes one of the primary parameters. A real collaboration through the establishment of the Digital Alliance Working Group is expected to provide recommendations relevant to this policymaking based on challenges and opportunities in the field. 

Inclusive, Harmonic, Secure and Human-Centered Digital Economy Policy 

Based on the first discussion of Digital Alliance Working Group involving leaders in government, industry, community organization, association, and state-owned enterprise, five digital policy necessities for national economic recovery were defined. First, regulation that drives digital economic inclusion. Second, equilibrium between intensive and restriction. Third, comprehensive and coherent regulation. Fourth, institutional coordination between ministries and institutions. Fifth, digital literacy. 

Considering the importance of reliable technology for making digital policies, it is also necessary to support the policy framework for the providers of public electronic systems that is consistent with Government Regulation no. 71/2019. The policy is expected to provide clear guidance on the use and benefits of cloud computing (including public cloud), guidance on risk-based data classification, and guidance on public cloud service procurement to ensure the procurement of certified cloud computing technology meets the security requirements for public sector data management and storage. In addition, institutions that have the authority and resources for implementation are also needed, to be able to organize and implement the grand design of digital economy. 

“Equipped with this need, the drafting team has prepared a Policy Paper containing digital economy policy recommendations relevant to Indonesia today. We hope this Policy Paper delivers tangible benefits for what we need to do to accelerate Indonesia’s inclusive digital transformation,” said Dr. ius. Asmin Fransiska, Dean of the Faculty of Law of Atma Jaya Catholic University. 

Some of the recommendations that are conveyed in the Policy Paper are: 

  • Develop digital economy policy by applying a penta-helix approach to ensure interaction and dialogue between stakeholders. This penta-helix approach involves five primary components: (1) most affected groups; (2) key stakeholders; (3) interest groups; (4) advocacy groups; and (5) the public. The inclusivity of this approach will encourage a stronger sense of belonging and further ensure the implementation of policies made. 
  • Ensure a balance between incentives and restrictions. It also needs to be supported by digital literacy, in which technology users are aware of their rights and duties, including the responsibilities that will arise. 
  • Establish a framework that ensures data protection and security, which means the priority is not only related to data localization, but data security itself. 
  • Emphasize cross-border data flow in the digital economy as well as establishing mechanisms that prioritize personal data protection and security. 

Indonesia’s digital economy itself is predicted to multiply by up to eight times by 2030. To realize this, collaboration needs to be strengthened.  

“The initiators of the Digital Alliance Working Group agreed that the path to economic recovery and industrial resilience is technology as a platform, innovation as a culture, and digital skills as the main driver. As a result, we will maximize our respective expertise to further empower Indonesia’s digital economy. From Microsoft’s side, we are committed to constantly providing secure and relevant technology for Indonesia, in addition to actively engaging in policy discussion or other skilling programs,” said Ajar Edi, Corporate Affairs Director of Microsoft Indonesia.