Accelerating Indonesia's Digital Economy: Insights and Solutions from Indonesia Brain FGD with Helmy Yahya

Jakarta, May 18, 2024 - Indonesia Brain has successfully held a Focus Group Discussion (FGD) with the theme “Digital Economy” on Friday, May 17, 2024, at the Millenium Centennial Center. This event presented Mr. Helmy Yahya as a special guest, who is widely known for his capabilities in the fields of innovation, digital economy, and culture.

In the FGD, Mr. Helmy Yahya appreciated Indonesia Brain's initiative. "I really appreciate this activity. Forums like the FGD held by Indonesia Brain are very important, especially because they are filled with young practitioners who master various fields," said Mr. Helmy. Mr. Helmy also reminded of the reality that Indonesia must face. "We are lulled by past glories," he said. He highlighted that Indonesia has lagged behind in many aspects, from agriculture to culture. "What are we going to sell? Our agriculture is already far behind. Rambutan from us, they are the experts. Durian from us, they export trillions. Manufacturing? Far behind, boss, from China. If I were to study business, I wouldn't have to go to America anymore, to China. 7 out of 10 strategic industries are already controlled by China." On that occasion, Mr. Helmy also raised several other important issues. He emphasized that Indonesia's soft diplomacy power is still low. "Every time in the news, Indonesian cuisine is included as the most delicious cuisine in the world. Rendang, fried rice. The most delicious snack is pempek, then siomay. But where? There aren't many Indonesian restaurants out there," he said. In addition, Mr. Helmy also highlighted the high political costs and the mentality of government agencies that still prioritize absorption over efficiency. "As long as you have to pay to get a position in government, it's impossible not to be corrupt," he said. Furthermore, this corruption issue is what causes Indonesia's corruption perception index to still be low and has an impact on the minimal flow of foreign direct investment from other countries. One of the FGD participants, Stanley Sebastian, co-founder of 7preneur, proposed the establishment of the Indonesia Digital Economic Agency (IDEA) or the Republic of Indonesia Digital Economic Agency (Berdiri). According to him, currently the digital economy sectors are still divided into several institutions, making them less efficient. Stanley also highlighted how China managed to increase its GDP fivefold from 2011 to 2020, with digital economic growth from 20% to 41.5%. "Digital economic growth can be an important key that drives national GDP growth further," said Stanley. The Indonesia Digital Economic Agency (IDEA) is proposed to play a centralized policy role, following the concept that has been implemented in Israel, Singapore, and Japan. These countries have formed a centralized national digital economy agency that functions as an accelerator without having to form a new ministry. IDEA will later have four main functional areas: a new business licensing center (licensing), a center for pooling funds for the development of the digital economy and startup ecosystem (funding hub), providing policy recommendations to authorized ministries (policy), and encouraging more national patented innovations (patent). With this initiative, it is hoped that decision-making will no longer be fragmented, so that it can accelerate the development of the digital economy in Indonesia in a more efficient and targeted manner.