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Minister of Finance: Many Government Programs Support The Digital Economy

Sri Mulyani
Sri Mulyani

JAKARTA – Minister of Finance Sri Mulyani said that various government programs have helped support the development of the digital economy. Starting from the provision of social assistance. Which is now carried out by transferring to the bank account of each family to stimulus in the form of tax incentives.

Sri gave an example, the social protection program included in the National Economic Recovery (PEN). As many as 10 million beneficiary groups of the Family Hope Program (PKH) benefit through their bank accounts, which means digital transactions occur.

On the other hand, the government provides tax incentives in the form of 0.5 percent for Micro, Small and Medium Enterprises (MSMEs) which are temporarily borne by the government (DTP). They obtain this incentive after they book their financial reports digitally.

“So, we provide various tax incentives in order not only to increase potential. But also to realize the potential of the digital economy in Indonesia.” Sri said in a virtual Indonesia Fintech Summit 2020, Wednesday (11/11).

Another government role, Sri added, is to provide internet quota subsidies for students and teaching staff. The government provides this subsidy so that they can carry out online learning activities optimally in the midst of restrictions on social activities.

Sri noted, in the PEN program, the government provides internet quota subsidies to 51 million students. 9.96 million students of Islamic boarding schools and madrasah to 5.3 million students. In addition, 1.12 million students within the Ministry of Religion are also beneficiaries.

They also provide assistance to the teaching staff. Sri said, as many as 3.5 million teachers and 285 thousand lecturers received internet quota subsidies to provide learning via the internet.

“This is part of the program for handling Covid-19 and economic recovery which can be an opportunity (for digital economy development),” said Sri.

Infrastructure Is Still An Obstacle For The Digital Economy

Indonesia Digital Economy Startup (Gojek)
Indonesia Digital Economy Startup (Gojek)

However, Sri admits that the development of the digital economy still faces challenges. One of them is the limited infrastructure that still needs to be improved. They data illustrated which shows that it does not connect 12 thousand villages to the internet.

In the posture of the 2021 State Budget, the government has budgeted IDR 413 trillion for infrastructure. Plus specifically for ICT of IDR 30 trillion. Sri hopes that this allocation can help equalize digital infrastructure. Which is the main key to the development of the digital economy in Indonesia.

From a policy perspective, the government is also trying to make improvements. Sri explained that the existence of the Omnibus Law on Work Creation. Which was recently inaugurated would support realizing the enormous potential of the digital economy. “Once the infrastructure is built, human resources are improved, regulations and bureaucracy must also be simplified,” he said.

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