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Jokowi urges global digital economy drive
President Joko “Jokowi” Widodo has proposed to Group of 20 leaders in Japan an initiative to boost growth in the global digital economy — one of his administration’s main economic focus issues — in the hope it will help bring about inclusive and sustainable development for all nations
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span>President Joko “Jokowi” Widodo has proposed to Group of 20 leaders in Japan an initiative to boost growth in the global digital economy — one of his administration’s main economic focus issues — in the hope it will help bring about inclusive and sustainable development for all nations.
The President arrived in Osaka on Friday for the first day of activities under the G20 Summit banner, joining two working lunch sessions to discuss myriad issues related to the digital economy, according to statements from the presidential press bureau.
In the first session focusing on trade and investment in the digital economy, Jokowi said G20 countries needed to create a platform for discussing best business practices with governments, corporations and micro, small and medium enterprises (MSMEs).
Such a forum was essential in reducing the social and economic gaps between countries around the world, the President said. The suggestion particularly focuses on leveraging so-called unicorns — companies that are valued at over US$1 billion — as enablers in this initiative.
Jokowi calls it the Inclusive Digital Economy Accelerator Hub, or IDEA Hub for short.
“IDEA Hub is basically a place to curate, manage and share experiences of digital business models for G20-member unicorns,” Jokowi told other world leaders.
Under his proposal, IDEA Hub would cover three areas in the information economy that have the prospect of bridging the existing economic gap and speeding up the implementation of an inclusive global economy: the sharing economy, workforce digitalization and financial inclusion.
Ever the savvy businessman, President Jokowi has been encouraging the development of the digital economy at the national level, which he expects will not only create jobs but also help small-scale businesses expand and have a knock-on effect on other economic sectors.
In November last year, Indonesia hosted the first World Conference on the Creative Economy in Bali, which featured 2,500 delegates from 30 countries.
Indonesia now boasts three start-up unicorns — Tokopedia , Bukalapak and Traveloka — while ride-hailing firm Gojek has been classified as a decacorn with a value of over US$10 billion.
More and more countries like Indonesia recognize that the digital economy plays a significant role in accelerating economic development, cultivating new markets and industries and achieving sustainable development.
The G20, representing 80 percent of the global gross domestic product (GDP), more than 75 percent of global trade and about 60 percent of the world’s population, has become the most exclusive and influential global economic forum.
And while the forum has been relatively successful in leading the global economy into more positive trends following the 2008 crisis, leaders are still faced with a number of challenges, most pertinently inequality. Heightened tensions between the United States and China also risk further exacerbating this global problem.
US President Donald Trump and Chinese President Xi Jingping are slated to meet on the sidelines of the G20 Summit on Saturday.
Foreign Minister Retno LP Narsudi said the President hoped that the meeting between the two titans would result in a fair and mutually beneficial agreement.
Jokowi told President Xi himself during a bilateral meeting after the working lunch sessions.
The President also held a meeting with South Korean President Moon Jae-in and a pull-aside talk with Japanese Prime Minister Shinzo Abe.
Moon welcomed the recent adoption of the ASEAN Outlook on the Indo-Pacific, and the two leaders shared a hope in speeding up negotiations for the Regional Comprehensive Economic Partnership (RECP), according to a presidential press statement.
Similarly, Jokowi and Abe reaffirmed their determination to conclude “a modern, comprehensive, high quality, and mutually beneficial RCEP” on Friday.
In the evening, Jokowi and First Lady Iriana joined other world leaders and their partners in a gala dinner hosted by Abe at the traditional Osaka Geihinkan reception hall. (tjs/afr)
