Indonesia’s Digital Economy
REGIONAL ECONOMIC STUDIES PROGRAMME SEMINAR
About the Seminar and Speakers
Emerging Technology in Indonesia’s Manufacturing Sector
Indonesia has an opportunity to revitalize its manufacturing sector performance in the Industry 4.0 era. Input data from the Statistik Industri is used to explore the relation between high-tech inputs and production. It is found that high-tech inputs have a significant but small effect on productivity due to low technological adoption in Indonesia. Sectors such as rubber, motor vehicles and other manufacturing use a large share of high-tech inputs and receive substantial gains in terms of productivity. A firm-level survey is also used to assess the level of adoption of technologies such as AI, robotics and automation, 3D printing, cloud computing, and big data. The survey indicates that there is a high degree of awareness and utilization of automation and robotics. Interestingly, there is a strong correlation between research and development (R&D) and the adoption of Industry 4.0 technologies. Small- and medium-sized firms have a relatively lower probability of adopting more advanced technology due to their financial capacity. Lastly, there is a low awareness of the government’s Making Indonesia 4.0 Masterplan.
Haryo Aswicahyono is a researcher in the Department of Economics at the Centre for Strategic and International Studies (CSIS), Jakarta, Indonesia. His research interests include trade and industrialization; industrial organization; competition policy; and economic development. Haryo received his Civil Engineering degree from the Bandung Institute of Technology in 1983 and joined CSIS in 1985.
In 1990, he continued his postgraduate study at the National Centre for Development Studies, Australian National University. He received his doctoral degree in 2000, with a thesis, ‘Total Factor Productivity in Indonesia Manufacturing, 1975-1993’.
E-commerce in Indonesia: The Rise of Online Commerce and its Impact on Firms’ Performance and Consumers
E-commerce has grown over the last five years and taken over a larger portion of the retail sector in Indonesia. While a lot has been discussed on the benefits of online-trade in Indonesia, not many studies have examined the phenomena using quantitative analysis. A dataset from a survey of 1,100 firms is used to explore how the use of internet technology for commerce (e-commerce) affects market coverage, sales and profit, and the cost structure of businesses. The preliminary findings show that being online allows firms to improve their performance. On average, firms that have an online presence improve their sales by 12%. Moreover, smaller firms seem to benefit even more from being online. This study also looks at the characteristics of e-commerce consumers in Indonesia by discussing the results of a survey conducted with 2,000 respondents across the country.
Yose Rizal Damuri is the Head of the Department of Economics, Centre for Strategic and International Studies. His research activities focus on international trade, regional integration and globalization of value chain. Yose has been teaching International Economics courses in the Department of Economics University of Indonesia for many years.
He is active in many networks of research institutes in East Asia region, such as in Asia Pacific Research Network on Trade (ARTNet) and ERIA Research Institute Network (ERIA-RIN). Currently he serves as the Co-Chair of the Indonesia National Committee of Pacific Economic Cooperation (INCPEC). Yose is the Research Coordinator of Indonesia Service Dialogue, a forum dedicated for the development of services sector in Indonesia. He is also an advisor to Indonesian Trade Negotiating Team. He received his PhD in International Economics from the Graduate Institute of International Studies, Geneva, Switzerland.
Registration
For registration, please click here. Registration closes on 23 October 2019.