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Regional Digital Competitiveness Is More Even

A venture capital company, East Ventures launched East Ventures – Digital Competitiveness Index (EV-DCI) 2022. The EV-DCI 2022 research report is a measurement of Indonesia’s digital competitiveness with the theme “Towards a Golden Indonesian Digital Era”.

EV-DCI 2022, which was compiled with the Katadata Insight Center and PwC Indonesia, presents digital competitiveness data in 34 provinces and 25 cities/districts in Indonesia. Digital competitiveness in regions in Indonesia continues to show a positive trend. This can be seen by the EV-DCI 2022 score of 35.2, which has increased compared to the previous year, which was 32.1 (2021) and the previous two years, which was 27.9 (2020).

A panel of experts from the Katadata Insight Center, Mulya Amri, said that increasing digital competitiveness was also experienced in many provinces outside Java.

“Although the top 10 rankings with the highest EV-DCI scores are still controlled by the provinces in Java and Bali, other provinces continue to show a fairly good increase in competitiveness,” said Mulya Amri in a virtual discussion, Monday (7/3).

The decline in the digital competitiveness gap is also evident from the smaller spread value. The spread value or the difference between the highest province scores (DKI Jakarta 73.2) and the lowest (Papua 24.9) for EV-DCI 2022 is 48.3, while in 2021 and 2020 they are 55.6 and 61.9, respectively.

“The smaller the spread value indicates an increase in the digital competitiveness of the provinces in the middle and lower ranks,” said Mulya.

The EV-DCI research report is also equipped with the results of a survey of 71 digital business actors, analysis of eight sectors, as well as perspectives from 18 figures. This perspective includes policy makers in the government, including the Coordinating Minister for Economic Affairs, Coordinating Minister for Maritime Affairs and Investment, Minister of State-Owned Enterprises (BUMN), Minister of Health, and others. In addition, the perspective also includes startup founders such as the GoTo CEO, Xendit CEO, Traveloka President, and so on.

The right strategy to achieve the digital golden era in Indonesia can be described by the shape of the house. Where the infrastructure of Technology, Information, and Communication (ICT) is a fundamental foundation that can be needed across sectors and institutions. Strengthening ICT infrastructure enables digitalization in various aspects, thereby accelerating the creation of digital government, digital society, and digital business.

These aspects also need to be strengthened by the application of sustainable principles or Environmental, Social, and Governance (ESG) to maintain long-term digital economic growth.

PwC Indonesia Partner and NextLevel Leader Radju Munusamy said, in heading for the digital golden era in Indonesia, there are five aspects that need to be considered.

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“That is accelerating the development of ICT infrastructure that can facilitate more equitable digital economic growth, creating a digital government that focuses on efficiency and transparency, developing digital talent capabilities through improving the education system and skills, focusing on increasing the adoption of digital technology in various sectors, and applying the principles of sustainability. to reach the golden era of the digital economy,” said Radju.

East Ventures Co-Founder and Managing Partner Wilson Weather added, “We believe that accelerating digital adoption is crucial in building a stronger digital ecosystem.

“However, this can only be achieved when all parties work together to achieve it. East Ventures is committed to continuing to support the development of the digital economy and paving the way for a digital golden era in Indonesia,” he said.

EV-DCI is a regional digital competitiveness mapping formed from three sub-indices, nine pillars, and 50 indicators. Its constituent sub-indices are input, output, and support, with the pillars forming human resources, use of information and communication technology (ICT), ICT expenditure, economy, entrepreneurship and productivity, employment, infrastructure, finance, and local government regulations and capacities.

DKI Jakarta has the highest EV-DCI 2022 score, with a score of 73.2. Meanwhile, in the second and third positions were occupied by West Java and DI Yogyakarta with scores of 58.5 and 49.2. In addition, East Kalimantan is one of the provinces outside Java that made it into the top 10 at 7th place with an increase in score of 4.5, with an EV-DCI 2022 score of 44.0.

Apart from East Kalimantan, several provinces outside Java experienced a fairly good increase in digital competitiveness. For example, Bengkulu experienced the highest increase in the 2022 EV-DCI score compared to the previous year, which was 7.8 points to 39.1. The increase in the score made Bengkulu go up seven places to 12.

West Papua and Lampung have also shown significant increases in digital competitiveness; rose 11 places to 19th and six places to 20th respectively.

The infrastructure pillar, which was the highest pillar in the previous year, also experienced an increase in the score in EV-DCI 2022. In EV-DCI 2022, this pillar increased by 10.5 points to 64.8. The spread on the infrastructure pillar also narrowed by 8.3 points or reached 79.0 this year, compared to the previous year’s spread of 87.3 points.

The decrease in the digital competitiveness gap in these areas is also shown by the increase in scores on the entrepreneurship and productivity pillars. This pillar increased by 10.1 points to a score of 23.6 in the 2022 EV-DCI. In addition, the regulation and regional government capacity pillar also increased by 19.1 points to 54.6 this year. (RO/OL-7)