The potential for developing a strong digital economy in Indonesia is massive, however this potential cannot be realised without the necessary Information and Communication Technology (ICT) infrastructure in all regions of Indonesia. The country is still developing its infrastructure with the aim of ensuring that all citizens have internet access.
Economic activities based on digital platforms and sharing, such as e-commerce, online marketplaces, fintech and ride sharing, are increasingly becoming an important driving force behind the development of a digital economy in Indonesia. The government continues to support the economic shift towards digital activities by funding the expansion of internet access throughout the country and putting in place a roadmap for the digital transformation of a number of key strategic sectors.
The COVID-19 also had the effect of accelerating the ongoing process of digitalisation in 2020 due to the need to shift to remote learning for children across the country. In order to curb the spread of the COVID-19 virus in Indonesia, it was necessary to implement remote learning in Indonesia.
During the COVID-19 pandemic, the government recommended that consumers switch to cashless payment options wherever possible in order to minimise the spread of the virus through cash transactions. This recommendation and the fear of COVID-19 infection in 2020 posed a challenge for small and medium businesses in Indonesia, many of which were ill-prepared to make this shift.
In 2020, OVO became one of the government’s payment partners in the Pre-Employment Card programme. Pre-Employment Card programme participants are required to have an account in an electronic or digital wallet or a BNI account in order to benefit from the programme’s incentives.
The leading players supporting the growth and expansion of digital payment in Indonesia are OVO, Gopay, and ShopeePay, the latter of which has recently attracted attention thanks to its fast growth at the end of the review period. Each of these three brands has its own strategy and unique positioning within the digital payment competitive landscape.
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