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Home Insight

Uncovering the Main Keys and Implementation of Digital Transformation in Indonesia

by Chandra Wirawan
April 29, 2024
in Insight, Technology
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Jakarta, Gizmology – Digital transformation is undeniably bringing great opportunities to every industry, from entertainment to smart mobility. However, its implementation is faced with various challenges. Then how to deal with it?

Primarily, limited resources are a challenge in digital transformation. This certainly requires all parties to innovate so that what is presented remains relevant to the needs of the community.

Digital transformation has indeed proven to be key in improving business capabilities, operational efficiency, and ultimately, customer experience and satisfaction. Behind it all, the ever-evolving connectivity provided by telecommunications operators is an important foundation for the growth of the digital ecosystem.

According to Mohamad Rosidi, Director ICT Strategy & Business at Huawei Indonesia, digital transformation is closely related to fiber connectivity for better development. He identified three main keys for digital transformation in Indonesia, namely Full Fiber Giga City Plan, Full Fiber Policy, and Financial Incentives.

“Full Fiber Giga City Plan is the establishment of all fiber connectivity to the target area into a broadband Gigacity,” he said in the Digital Transformation Trends 2024 talk show held by Selular Media Network (SMN), Thursday (25/4/2024).

In addition, according to him, the Full Fiber Policy requires Right of Way or integrated approval, then infrastructure sharing, to pre-deployment infrastructure for fiber or providing pipes and roads for fiber construction in buildings.

“While in Financial Incentives, there is a budget allocation for the application of fiber to tax relaxation, for example tax incentives to ISPs as indirect subsidies,” concluded.

Digital Transformation Can Absorb Many Workers

Transformasi digital

On the same occasion, Ronald Limoa, VP Technology Strategy and Consumer Product Innovation of Telkomsel revealed Telkomsel’s innovation as a form of digital transformation sustainability. Among them are expanding the 5G network, Baggage Movement Tracking using RFID (Radio Frequency Identification) technology to track baggage movement within the airport, and IoT Connected Smart Highway which is a smart solution to pay tolls without the need to tap-in at the toll gate.

“Since 1995, Telkomsel has always innovated. So this is the form of innovation that we present in 2024,” he said.

Meanwhile, in the financial sector, Belva Driantama, VP Corporate Strategic of Indodax revealed the development of the crypto and blockchain world throughout 2024 with the implementation of Central Bank Digital Currency (CDCB) in several countries, such as Jamaica, Zimbabwe, Bahamas, and Nigeria. He believes that a number of financial sectors can be replaced by blockchain technology, such as pawnshops, international remittances, and capital markets.

“CBDC is digital money issued and controlled by the central bank that is used as legal tender to replace banknotes. There are currently 18 other countries that are conducting pilot projects for CBDC,” details.

Read also: Get to know the Digital Indonesia Vision 2045

Well, as an industry player, Kadin claims it has adopted Industry 4.0 through a digital platform called Kadin Cipta. This is as expressed by Sarman Simanjorang, Vice Chairman for Regional Autonomy Development of Kadin Indonesia.

According to him, the digital transformation implemented by the industry is expected to absorb more than 50 million workers and increase labor productivity by more than US$35 billion.

“This platform is a basic digital platform for all Kadin members that can be a decision-making tool for members, associations, government, and entrepreneurs,” details.

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