The utilization of digital technology has contributed greatly in various fields. In fact, economic development has been increasingly advancing using digital technology in recent years. This use is expected to simplify processes that were originally manual to become all digital and more efficient in terms of time, cost, and effort.
In the following article, we will explain about the digital economy. From the definition of digital economy, market, to its benefits for the country. To understand further, let's read the following article.
Key Takeaways:y Takeaways:
- Digital economy means economic activities that utilize the help of digital technology, such as the internet and artificial intelligence.
- Digital economy enables businesses to operate and transact globally.
- In the era of globalization, digital economy allows countries to conduct business transactions and compete in international markets without needing to have a physical outlet in that country.
gramedia.com, digital economy means economic activities that utilize the help of digital technology. For example, the internet and artificial intelligence (Artificial Intelligence). This digital technology is used as the main key in various economic activities, from production, distribution, to consumption. With the increasingly developing digital technology that exists today, the process of economic activities will become easier.
The digital economy is implemented by conducting various economic activities digitally. The easiest digital economic activity you can find in everyday life is access to digital banking and shopping through e-commerce (Sahabat Pegadaian, 2024).
Currently, you can shop without having to visit physical stores. You can buy goods using a digital system called e-commerce on several available marketplaces. For example, transacting on Shopee, Tokopedia, and Pegadaian Digital. The implementation of this digital economy can also overcome geographical limitations when economic transactions occur. You can buy goods from outside the city or even from abroad.
In fact, you don't need a physical location to open a business. Rather, you can rely on a more practical business operating system. In fact, there is now a monitoring system available that makes it easy for you to monitor the ongoing business process regularly.
Through the digital economy network, producers and consumers can be more easily connected. Business processes also become efficient and have an impact on the optimal economic development of the country.
kominfo.go.id which is the official website of the Ministry of Communication and Informatics that in 2020 Indonesia's digital economy value has grown by about 11 percent compared to the previous year. The digital economy value at that time reached up to USD 44 Billion and contributed 9.5% to Indonesia's GDP.
Based on data presented on the official website asean2023.id, it states that ASEAN's digital economy value is projected to be able to increase up to two trillion US dollars by 2030.
In fact, Minister of Communication Airlangga said that the transaction value that occurs through the digital economy is projected to reach USD 124 Billion in 2025. According to him, Indonesia has many supporting factors, including:
- Indonesia is the 4th country with the largest population in the world.
- The number of productive age population in Indonesia is more than 191 million or equivalent to 70.7% and dominated by Generation Z and Millennials.
- Indonesia has quite a lot of mobile phone users reaching 345.4 million with internet penetration of 73.7%.
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binus.ac.id, digital businesses can adapt to rapid market changes. Therefore, companies tend to adopt digital businesses to monitor trends that are constantly changing such as consumer trends and the strategies needed. Through digital business, companies can analyze data that is useful for better decision making.
In facing various existing challenges, businesses need to have strong defenses. Some examples of challenges referred to such as global economic crisis, pandemic, world war, and others. By adopting digital models, inventory management and supply from suppliers in the business process can be effective thereby increasing productivity and economic growth of the country.
