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Skills gap, inadequate regulations hamper digital economy
Skills gaps, inadequate regulations and a lack of internet access outside of the main cities have hindered the growth of the digital economy, researchers have said.
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Back view of young a businessman and woman looking at digital business screens and holograms in a futuristic interior. (Shutterstock/Peshkova)
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ndonesia’s digital economy has enormous potential not only as reflected in the high rate of its adoption in the country but also by its potential market value, which is estimated to reach more than US$100 billion in next five years.
However, skills gaps, inadequate regulations and a lack of internet access out of the main cities have hindered the growth of the digital economy, researchers have said.
Indef economist Berly Martawardaya said that the country needed to build its soft infrastructure including the enhancement of digital literacy and skillset of human resources to meet the expectations.
“Digital literacy and skillsets must be improved for consumers and producers alike,” Berly told The Jakarta Post on Friday, last week. He said that retailers should, for example, acquire the necessary skills such as improving their photography and videography skills to boost sales on online platforms.
A joint study conducted by Indef and nonprofit research foundation Laboratorium Data Persada projected that the market value of the country’s digital economy would almost double to Rp 1,447 trillion (US$101 billion) by 2024 from Rp 814 trillion in 2018, signifying the rapid growth of the digital industry.
The lack of human resources in the digital economy occurred because its growth was too fast for educational institutions to prepare the required skills to meet labor market needs, Indonesia E-Commerce Association (idEA) chairman Ignatius Untung said.
“Many start-up companies complained that they find it hard to recruit employees. Other than that, the high wages of employees in technology companies serves as evidence of the lack of labor supply compared to high demand,” said Ignatius on Tuesday.
