The Philippine competition watchdog said on Friday (10/08) it has approved ride hail firm Grab's acquisition of Uber's operations. (Photo courtesy of Grab)
Indonesia Secures $750,000 From ADB to Study Disruptive Tech Impact on Economy
BY : SARAH YUNIARNI
DECEMBER 11, 2017
Jakarta. Indonesia has secured $750,000 from Manila-based Asian Development Bank, or ADB, to study the impact of disruptive technologies on the economy.
"ADB's technical assistance will help to map the impact of disruptive technology on the Indonesian economy, both at the aggregate and on the sectoral levels. ADB is keen to support the government's efforts to leverage the benefits of technology while mitigating risks," ADB country director for Indonesia, Winfried Wicklein, said in a statement on Monday (11/12).
With the world's fastest-growing number of internet users, Indonesia has a big potential for benefiting from the digital economy. It can be seen from the significant growth of the country's internet traffic and the rise in revenue from cloud computing and the internet of things (IoT) technology.
Notable start-ups such as ride-hailing services Go-Jek and Grab have tapped into the market, while helping create jobs, providing health insurance options, and creating digital wallet features that can make access to commercial banks more easy.
On the other hand, disruptive technologies can widen the country's welfare gap and cut employment in certain industries.
"Indonesia is at a crossroads of global technological changes. Better knowledge on this fast-evolving issue will be essential for policy-making and investment decisions," said Suahasil Nazara, the head of the fiscal office at the Ministry of Finance.
The government is developing the "2020 Go Digital Vision" campaign to make Indonesia the biggest digital economy in Southeast Asia in 2020. Last year, the government issued the 14th economic reform package with a roadmap for supporting e-commerce.
ADB is dedicated to reducing poverty in Asia Pacific through inclusive, environmentally sustainable growth and regional integration.
The lender, which was established in 1966, is celebrating 50 years of partnership development in the region. It has 67 members, of which 48 are from Asia. Its financing last year amounted to $31.7 billion, including $14 billion in co-financing.