Digitalization From Top to Bottom

KOMPAS/M PASCHALIA JUDITH J

A mobile application called coopRASI from PT Sistim Digital Transactions Indonesia for the digitization of cooperatives.

The news about the rapid growth of digitalization is not only encouraging but also challenging, in terms of what needs to be done next to bring it deeper into markets in small towns and even districts.

Digitalization, which has paced up over the past two years, is expected to become a new impetus for national economic growth. Although the prospect is bright, imminent challenges require serious attention so that digitalization will not leave more gaping disparities in the economic recovery.

The growing trend of digitalization is reflected in the volume and value of digital transactions. Bank Indonesia (BI) data shows the value of digital banking transactions amounted to Rp 11,100 trillion (US$757,126,687.18) in the first quarter of 2022, which was an increase by 34.9 percent from the same period last year (Kompas, 18 May, 2022).

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An important challenge to be addressed is related to the role of digitalization in small towns and districts. What should be done in order that people across the country can increase their digital literacy and avoid falling prey to digital technology-based fraud?

Digitalization down to the grassroots is very profitable.

The intention to expand digitalization markets outside of major cities has been announced by several technology companies. Those who are already well-established in big cities are now beginning to move on to small towns. They see potentially huge markets there. Digitalization down to the grassroots is very profitable.

However, profit-oriented ventures cannot just be carried out without promoting literacy awareness and an entrepreneurial spirit to the community. Their concept of possessing a gadget must change from seeing it as a symbol of status to seeing it as an instrument of education and productivity. They have yet to develop such an awareness.

KOMPAS

Digitalization becomes a new motor to drive the economy.

It is among the challenges requiring urgent action. Tech companies should not simply jump at the market chance and make profits. The conditions of low-level communities are still very vulnerable, with inadequate digital literacy. Therefore, they must provide knowledge about how to use digital facilities properly.

Technology companies must be observant and considerate about local customs in promoting their platforms.

The ability to establish a digital and entrepreneurial ecosystem in second- and third-tier towns, based on an understanding of their backgrounds with all their shortcomings, will make tech companies excel more than just succeeding in business expansion. The community engages in social life with challenges unique to them. Technology companies must be observant and considerate about local customs in promoting their platforms.

Together with financial, logistics and telecommunications companies, as well as governments, they may be able to play an important role in building digital ecosystems in outlying regions. The second- and third-tier towns can potentially be tapped further, but they should not become merely an object of commercial exploitation. If all goes well, digitalization will benefit all. We can reap the fruits together from the increasing digital literacy of communities.

(This article was translated by Musthofid)