The world has always witnessed various technological advances revolutionizing business approaches across industries.
According to ERIA, digital technology is one of the major transformational forces in human society, with the Internet of Things (IoT) experiencing a 225% increase and public cloud services a 120% increase in market size from 2015 to 2024. This growth is supported by Indonesia’s fast-growing market. By the end of 2019, Badan Pusat Statistik Indonesia reported that 3G/4G coverage had reached 93% of internet users
Indonesia’s Journey Towards ASEAN Digital Economy Integration
Indonesia embarked on its journey towards integrating into the ASEAN Digital Economy Framework Agreement (DEFA) on September 16, 2023. According to a e-Conomy SEA 2022, Indonesia boasts the highest digital economic market potential within ASEAN, expected to grow from $77 billion in 2022 to $130 billion by 2025, leveraged by its strengths Indonesia is becoming one of the fastest-growing technology markets. DEFA aims to build upon existing commitments related to the digital economy, such as cross-border data flows, personal data protection, and digital ID systems.
Importance of Data Protection in Digital Transformation
One of the biggest factors to capitalize on this potential is data protection. Due to its large number of internet users in Indonesia, data protection is crucial. As mentioned by CIPS, Indonesia’s regulatory framework for personal data plays a significant role in integrating with the ASEAN Model Contractual Clauses for Cross-border Data Flow, facilitating smoother data transfers within the region.
Data protection goes beyond passwords. By implementing digital transformation, measures such as Data Loss Prevention (DLP) can monitor, detect, and block the transfer of sensitive data in real time, providing integrated security solutions.
There are fatal consequences of successful cyber attack such as, damaged reputation and financial loss. According to PwC “2024 Global Digital Trust Insights”, a data breach incident costs an average of Rp 15 billion.
Key Areas for Digital Transformation
There is still much to cover, such as digital payments, e-commerce, and digital ID systems, to contribute to a secure and interconnected ASEAN digital economy. Through these concerted efforts, DEFA will not only bolster regional digital cooperation but also position ASEAN as a digital community on the global stage.
The future of Indonesia is digital, and TMS Consulting is here to be your trusted partner on this exciting journey. With our commitment to Innovation, TMS Consulting can help you unlock your full potential and achieve sustainable growth in the digital age. Talk to us today and take the first step to being a part of the global digital revolution!
Source & Reference:
Indonesia’s Strategies for Joining the ASEAN Digital Economy Framework Agreement (CIPS Policy Brief)
Advancing ASEAN Digital Economy Framework Agreement (DEFA)
Accelerating Digital Transformation in Indonesia (ERIA)
Governance Model for Digital Transformation, Técnico Lisboa
Managing cybersecurity should be a top priority for 2024 (PwC)
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