Head of Bappenas: Digital Transformation Creates 17 Million Jobs in 2025

JakartaDetakpos.com-The urgency to accelerate digital transformation is driven by the potential for increased economic activity that can be generated as well as its impact on improving the business climate and increasing investment.

A study conducted by Google shows that Indonesia’s economic internet is estimated to reach USD 27 billion in 2018 and grow to reach USD 100 billion in 2025.

Digital transformation in government services is marked by efforts to share data center infrastructure with the potential to save Rp. 8.1 trillion per year in operating and maintenance costs through the consolidation of 2,700 data centers.

In addition, the consolidated savings of 27,400 government agency applications amounting to Rp 2.7 trillion per year and savings in application development costs made by local governments are estimated to be up to Rp 12 trillion.

For the domestic industry, digital transformation can have an impact on improving the business climate and increasing investment.

The GDP growth of the manufacturing industry is estimated to increase to 8.1 percent and the contribution of the manufacturing industry to GDP to 21.0 percent in 2024. Meanwhile, new jobs of up to 17 million people can be created for society in 2025.

Digital transformation is conducted through automation or digitization of production activities, can have impact on changes in the types of work that will be replaced by machines.

But studies show that automation can create a wider variety of jobs than machines replace lost jobs.

The results of the McKinsey study show that there is a potential for additional jobs of 4 million – 23 million by 2030. These additional jobs can be obtained through the application of new skills and the creation of new jobs from the technology adopted.

Empirical studies show that digitalization correlates with the economic development of a country. Countries that have a high index of digital ecosystem development tend to have high per capita income as well. Furthermore, a 10% increase in the digital sector can drive economic growth of 1.0 – 1.4%.

On a micro level, the experience of developed countries shows that digitalization can increase industrial output and productivity, especially: the financial industry, the manufacturing industry, the retail sector and the service sector.(HMS).

Editor: A Adib

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