Cross-border data exchange essential to boost Indonesia’s economy

Cross-border data exchange essential to boost Indonesia’s economy
Increased cross-border data flow could benefit the Indonesia economy substantially, creating an economic value of IDR 2,305 trillion (US$162.7 million) by 2030 in food, manufacturing, financial services, public infrastructure, retail and other sectors.
 
According to “The Digital Komodo Dragon: How Indonesia Can Capture Digital Trade Opportunity at Home and Abroad,” published by Hinrich Foundation, the economic value enabled by increased data flow will grow more than 18-fold in Indonesia between 2017 and 2030.
 
But Indonesia is not there yet. In fact, the country lags behind in terms of cross-border data flow, which contributed IDR 125 trillion (US$8.8 million) in economic value in 2017, according to the report. The figure accounts for just 0.9% of Indonesia’s GDP. “Low technology penetration rates today mean there is great untapped potential for Indonesia,” says the report.
 
After Indonesia leverages data flow-related technologies, however, the economic value generated will make up 9% of the country’s GDP, according to the report.

Agriculture and food

Although this sector is Indonesia’s largest employer (accounting for 41% of its workforce), Indonesian farms fall behind in their Southeast Asian peers in terms of productivity and yield.
 
Local data analytics firm Dattabot has partnered with cloud platform Predix and GE Digital to develop a smart farming solution HARA. It provides data-driven insights into farm and field potential, proactive mitigation of pests and disease, among other capabilities.

Consumer & retail

Indonesia is the largest e-commerce market in the ASEAN region and the sector is projected to grow 38% per year. Local company Tokopedia is using AI platform provider Appier’s service to improve operation efficiency in 14 markets across Asia.

Infrastructure

Utility provider PT Pembangkitan Jawa-Bali (PJB) is using GE’s performance analytics and operation optimization tools to enhance asset efficiency.
 
Data will be sent from PJB to remote monitoring, diagnostics and optimization centers, before algorithm-based recommendations are sent to individual power plants in real-time. Cross-border data flow is critical in this case.

Resources

Although Indonesia is endowed with vast natural resources such as oil, gas and coal, a substantial proportion remains untapped.
 
Smart exploration methods drawing on big data have the potential to uncover more opportunities in Indonesia’s resource landscape. Also, autonomous drilling and predictive maintenance will augment productivity. In this case, data gathering, data storage and data analysis across borders are needed.

Financial services

Due to Indonesia’s geographical spread and high mobile phone ownership, there is great potential for digital financial services. The local population desires secure mobile money transfer at low costs. Cross-border data flow will be required in order to store data overseas and to enable seamless electronic remittance and payments across countries.

Manufacturing

With the “Making Indonesia 4.0” industry roadmap, the Indonesian government aims to promote the adoption of digital technologies to boost the country’s manufacturing sector.
 
Cross-border data flow will be crucial as factories will need operation monitoring and collaboration to optimize production processes. 

Health

Overseas data management platforms can support digital solutions applied in the healthcare sector. To improve the efficiency of the small, typically single doctor-run medical clinics which comprise a large proportion of healthcare services in Indonesia, local start-up Medigo developed a web and mobile-based application to automate and streamline workflows, ranging from doctor scheduling to patient registration and drug and patient record management.
 
Medigo uses Amazon Web Services for data storage and management as well as Bitbucket for programmer coordination. As Medigo’s code developers are located in different parts of Indonesia, the online repository provided by Bitbucket helps to manage simultaneous coding processes.
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