Unlocking the Potential of the Digital Economy for Regional Development

In this section, the speakers from various sectors explained about the digital development that helps the regional development. For example, Gustaff Harriman Iskandar, the Director and Founder of Common Room Networks Foundation took a case study of Kasepuhan Ciptagelar, an adhere ancestral tradition that relies on farming established in 1368, located in East Java that adopted the digital technology in their local communities, implemented by giving scientific knowledge and giving some example through prototype and experiment that help the people to improve the access to communication and information.

Another example of case study from Julie-ann Lambourne, the CEO of enVizion Group Inc, Australia shares the experience of enVizion Group in sharing the education in technology innovation some regions in Australia which it combines the culture with technology. 

Lynley Mannell, the Team Leader from Strengthening Agricultural Finance in Rural Areas (SAFIRA) also added an example that the development of the access to finance will help the rural communities in their daily activities. But there are some guidelines given to secure the investing in responsible digital financial services such as transparency, prevention on people taking more debt than they can manage so the identity of the customers is needed, establish a proportional framework and enable the interoperability of digital financial services.

Achmad Zaky, as the CEO Bukalapak, an e-commerce in Indonesia promotes the Bukalapak innovation features such as BukaReksa, BukaEmas and BukaPegadaan that can be ways to enhance the economic community in Indonesia. Another speaker, Margareta Wahyu Catur Wijayanti from Wahana Visi Indonesia explained about ASKA Application through mobile application in Simpan Pinjam Masyarakat Miskin.

We can see that Indonesia uses the digital economy to develop. But we can also see that problems come from the digital economy, we know that there is still a digital gap between people in the west of Indonesia and the east of Indonesia. The advanced technology has been used by the people in the cities but for the citizen who lives in the small village, the digital technology only can be used by certain people. That is why the actors are trying to transfer the technology so the technology distribution is equally can be received by everyone. When the technology is distributed already, then the disparities can be reduced.

Smarter Funding for Better Outcomes

Astera Primanto Bhakti, the Director General for Fiscal Balance, Ministry of Finance mentioned the intergovernmental transfer as funding can help to reduce the regional disparity but still, we need to search for more sources of fund to fulfill the gap of local budget for the sake of public infrastructure development.

Blane Lewis, the Director of Indonesia Project, Australian National University observed Indonesia's case study related with the Dana Alokasi Umum given by the central government to local government. It can be concluded that the results of DAU to the service access shows a good result for the district with good financial management however the districts with not so good audit don't give a significant result. That is why Lewis believes that there should be the reformation of DAU and also the better commitment from the government.

Sri Bagus Guritno, as the Director of Public Private Partnerships and Financial Engineering, National Development Planning Agency mentioned the plans for infrastructure development, such as risk management, smarter funding on infrastructure and the planning tools that can be used still, the financing for infrastructure is necessary. Virda Dimas Ekaputra, President Director, PT. Bandara Internasional Jawa Barat (BIJB) explained about the public private partnerships for the West Java International Airport Project where the government, PT BIJB, Investor and Bank institutions are involved in financing matters. Bambang Sudibyo, the Chair of National Amil Zakat Agency (BAZNAS), explained about Indonesia Syariah social finance, such as ZIS, WAQAF and HAJ funds.

Another aspect that also plays an important role to support the development in Indonesia is funding. The speakers have explained some methods of funding that are applied to some regions. Still, the government has to see which part or sectors that is prioritize to be funded too.

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Writer:
Vera Hadinata
AFOSP Intern - ASEAN Foundation