G-20 News

Expect the G20 to maximize the potentials of the digital economy

Vast technological developments have brought about digital transformation in various sectors, from education to economy, which have facilitated the daily activities of people.

However, several digital threats still exist in the form of cyber attacks, data leaks, and online scams among others that continue to haunt the digital ecosystem.

According to data from the International Telecommunications Union (ITU), by 2022, one in three people in the world will decide not to use the Internet, said the Minister of Communications and Information Technology, Johnny G. Plate .

Plate noted that this is due to the lack of confidence and understanding in the correct use of telecommunications technology. Fear of digital threats also increases people’s ignorance of improving their digital literacy and skills.

On the other hand, the world cannot avoid a future that depends heavily on the use of digital data by various public and private institutions, he stressed.

Therefore, cross-border data governance and fair use of data through the implementation of Data Free Flow with Trust (DFFT) and Cross-Border Data Flow (CBDF) are becoming an urgent need these days.

Indonesia, as chair of the 2022 G20 Presidency, has proposed that the four principles of fairness, legality, transparency and reciprocity become the foundation for the practice of cross-border data governance.

Additionally, during the 3rd Digital Economy Working Group (DEWG) meeting, held in Labuan Bajo, East Nusa Tenggara (NTT) Province from July 20-22, 2022, the Indonesia highlighted digital skills and literacy as the second priority of the working group. as well as DFFT and CBDF as a third priority.

DEWG is one of the G20 working groups that focuses on issues related to the digital economy and highlights the role of digital transformation on economic and social growth.

The Minister expected that the meeting, which was attended directly by 17 delegations and virtually three delegations from the G20 members, could establish three deliverables.

Deliverables include recommendations and policies to increase the involvement of vulnerable groups in the digital economy sector; a G20 toolkit on digital skills, literacy and a workshop; as well as a summary of practices and policies for the development of advanced digital skills and literacy.

At the meeting, G20 members also sought a common understanding on a clear definition of trust and general principles to facilitate cross-border data flow.

Spokesperson for the Ministry of Communication and Informatics, Dedy Permadi, said that all parties involved in the 3rd DEWG meeting agreed on the need to strengthen cross-border data governance.

“The Digital Economy Working Group, or DEWG, has completed discussions regarding the CBDF,” he said.

The results of the working group’s discussions will be presented at the G20 digital economy ministers meeting to be held in Bali in early September 2022.

In order to deepen the discussion on the CBDF and establish a common agreement on the agenda, Indonesia organized a workshop on the last day of the 3rd DEWG meeting.

Besides the members of the G20, several private actors, international organizations, academics and non-governmental organizations were invited to participate in the workshop.

“Thus, the agenda does not only represent the interest of the government. Therefore, the cross-border data flow agenda will be able to provide (more) comprehensive recommendations (on data governance),” remarked Permadi, who was also the alternate chair of the G20 DEWG 2022.

Optimizing the digital economy

The development of cross-border data governance will not only promote the establishment of concrete and global collaborations to accommodate various digital innovations but also the revival of the global digital economy.

Without proper and inclusive data governance, the use of data will not work fairly. It is also possible for data to become a finite commodity, resulting in group-based data usage.

Therefore, the Indonesian G20 Presidency is pursuing concrete deliverables to achieve beneficial use of data for all parties.

Plate had drawn attention to the growing use of digital technology these days. Digitalization is expected to continue driving global economic growth in the coming years as it is expected to grow from around US$520 billion (Rs 7,780 trillion) in 2021 to US$1.2 trillion (Rs 17,954 trillion rupees) in 2026.

Meanwhile, The director general of IT applications at the ministry, Semuel Abrijani Pangerapan, said the value of Indonesia’s digital economy is expected to reach US$124 billion (1.855 trillion rupees) in 2025.

To maximize the potentials, Indonesia will host the G20 DEWG 2022 side event titled “G20 Digital Innovative Network” with the theme “The Rise of Digital Economy: Post-pandemic Recovery and Beyond”.

The forum aims to facilitate knowledge sharing as well as international partnerships between start-ups, venture capitalists, policymakers and businesses to solve various global challenges.

It succeeded the G20 Digital Innovation League initiated by Italy during its G20 presidency in 2021.

In 2021, Indonesia and Italy agreed to coordinate to ensure the implementation of the forum the following year, although it now takes on a different name.

Pangerapan said the 2021 Digital Innovation League involves more than 100 start-ups and 100 venture capitalists from G20 members and partner countries.

A dozen start-ups have been awarded as 2021 Digital Innovation League winners, including an Indonesian education start-up, Ruangguru, and a healthcare start-up co-founded by a team of scientists Indonesians and Singaporeans, Nalagenetics.

During the Indonesian Presidency in 2022, the forum aims to find the 100 most promising start-ups in the five priority sectors of health, renewable energy, smart society, financial inclusiveness and supply chain. .

The 2022 G20 Digital Innovation Network will hold start-up pitches, panel discussions, one-on-one business meetings, networking sessions, as well as cultural events in a hybrid format in Bali from September 2-4 2022.

Registration for the G20 Digital Innovation Network 2022 has been opened to the public at g20innovationnetwork.org.

By involving various actors in the digital economy, the implementation of the forum can also promote sustainable and inclusive global economic development as well as digital transformation to ensure that no one is left behind in this era of rapidly developing technology.

Currently, only about 20% of people in developing countries have access to the Internet. Furthermore, the gender gap in the digital sector persists globally.

Home to approximately two-thirds of the world’s population and representing 80% of the world’s gross domestic product (GDP), G20 member countries have a responsibility to develop various policies to increase people’s well-being, as highlighted by the Coordinating Minister for Economic Affairs Airlangga Hartarto.

Therefore, it is only fitting that the G20 strives to establish fair and sustainable data governance in order to optimize the potentials of the digital economy in the development of a global post-pandemic global economy and inclusive that most empowers and benefits the community to recover together and stronger.

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