Technological advances have in fact had an impact on various fields, one of which is the economy which is now starting to enter the digital economy stage. In addition to all the practicality offered by the digital economy , Indonesia must overcome challenges such as personal data protection, cybersecurity, and digital inequality. So, how beneficial is this digital economy for the country? Check out the details below!
What is the Digital Economy?
The digital economy is an economic concept that uses digital technology as a key element in the process of production, distribution, and consumption of goods and services. It covers many things, from e-commerce , digital banking, instant messaging applications, and social media. Because, one of the characteristics of the digital economy is the adoption of digital technology to improve efficient production processes, connect businesses with customers globally, and create innovation to drive economic growth.
Examples of Digital Economy Applications
As explained above, the digital economy uses digital technology as a key element in the production, distribution, and consumption of goods and services. Therefore, the two most common examples of digital economy applications that we encounter include e-commerce and fintech businesses .
E-commerce businesses have changed the way people shop in Indonesia. Platforms such as Tokopedia, Bukalapak, and Shopee allow sellers and buyers to transact online , connecting local producers with global markets. This has certainly created new business opportunities, reduced unemployment rates, and increased people’s welfare.
On the other hand, fintech companies, such as GoPay and OVO, have changed the way you complete financial transactions. They provide digital payment services, online loans , and investments through applications so they can accelerate financial inclusion in Indonesia.
3 Benefits of Digital Economy for National Prosperity
The digital economy provides a number of significant benefits to the prosperity of the country. Here are three main benefits.
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Wider job opportunities
The digital economy creates a demand for workers with digital skills. This opens up wider job opportunities, especially in sectors such as information technology, graphic design, and digital marketing. Jobs in information technology such as software developers, data analysts, and cybersecurity experts are also becoming very important.
In addition, e-commerce businesses require logistics, customer service, and warehouse management staff to operate their infrastructure. This creates a variety of job opportunities that can reduce the unemployment rate in the country and improve the welfare of the community.
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Supporting transactions on a global scale
Businesses can operate and transact globally through digital platforms. This helps in expanding the market and increasing exports of goods and services. In the context of globalization, the digital economy allows Indonesian businesses to compete in the international market without having to have physical outlets in those countries. Companies can sell their products and services to customers all over the world easily through e-commerce platforms . This certainly opens up new opportunities for exporters and generates foreign exchange for the country.
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Strengthening business and economic resilience
The popularity of digital business lies in its ability to adapt quickly to market changes. Companies can easily monitor consumer trends and change their strategies accordingly. In addition, thanks to sophisticated data analysis, businesses can make smarter decisions about resource allocation and product development.
Business resilience is important in facing various external challenges such as the global economic crisis or pandemic. Businesses that have adopted a digital model will be more flexible and able to operate in various conditions. This also creates efficiency in the supply chain and inventory management which ultimately increases the productivity and economic growth of the country.