Skills for the future: Capturing a Rp 4,434-trillion opportunity for Indonesia in 2030
Indonesia has been characterized as Southeast Asia’s largest and fastest growing digital economy. However, the country also faces a shortage of digital skills. A 2018 survey, for example, reflects that employers of small and medium-sized businesses cited difficulties in accessing digital talent. Concerns over the lack of digital skills have become even more pronounced during the COVID-19 pandemic, which has forced businesses to rapidly build the digital capabilities needed to continue their operations.
To tackle Indonesia’s productivity challenge and allow businesses to weather the current pandemic, digital skilling has become an imperative for the nation. This makes it essential for policymakers to understand the size of the economic contribution of digitally skilled workers in Indonesia – and the steps to realize it. While there has been extensive literature on the productivity benefits of digital technologies in Indonesia, none to date have attempted to quantify the value of digital skills in the country.
To address this knowledge gap, AlphaBeta conducted a study in collaboration with Google to examine the economic significance of digital skills in Indonesia, especially in non-technology sectors. This study finds that at an accelerated pace of skilling, digitally skilled workers can contribute Rp 4,434 trillion (US$303.4 billion) to Indonesia’s GDP in 2030. Please visit the following links to view the report: