DIGITAL TRANSFORMATION on INDONESIAN PUBLIC SECTOR

By: Eddy Satriya

Deputy Assistant for ICT and Utility
Coordinating Ministry for Economic Affairs

Prepared for:
Microsoft Industry Summit for Public Services Industry

Ballroom Ritz Carlton Hotel, Pacific Place

Jakarta, 15 November 2017
 ICT for Economy
1. Economic growth : 5,01% (2Q/2017);
2. ICT (Informasi dan Komunikasi) is one of the highest
for the growth, 10.88%;
3. The only sector for double digit growth;
4. The challenge is how to maximizing output through
technological change/ICT and innovation. Not only for
economy but for other public sectors/services;
5. Y = f (K,L,i) where i is technological change coefficient.
Sources: BPS, Kemenko Ekon 2
 PUBLIC SECTOR
1. The public sector is that portion of an economic system that is
controlled by national, state or provincial, and local
governments. (whatis.techtarget.com);
2. The public sector is the part of the economy concerned with
providing various governmental services. (Wikipedia);
3. The public sector is the part of a country's economy which
is controlled or supported financially by the government.
(CollinsDics);
4. The keyword is public-economy-governments/services
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 Some Numbers on Indonesian ICT
1. Population : 262 millions;
2. Fixed lines: 10 millions;
3. Mobile Phones (SIM cards): 370 millions;
4. Internet Users : 132 millions;
5. Smartphones: 63 millions;
6. 65% users are in Java island;
Sources: Kemenkominfo, APJII, BPS 4
 WHAT WE HAVE ACHIEVED
DONE 1. Indonesian Broadband Plan (Perpres 96/2014)
2. National Strategy on Financial Inclusion SNKI (Perpres 82/2016)
3. Road map on E-commerce (Perpres 74/2017)
4. Establishment of Cyber Body and National Encryption Agency
(BSSN)
ON GOING 1. Government Regulation on Trade Transaction on Electronic Basis
(RPP-TPMSE by Ministry of Trade)
2. Completing Fiber Optic Backbone across the nation (PALAPA
RING PROJECTS)
3. National Payment Gateways etc.
4. Relevant programs on SMES, Village-based Development
programs, 1000 startups, entrepreneurship, etc.
PLANNING 1. On line system on national commodity auction
2. Preparation on detail implementation of SNKI and Road Map on
E-commerce
 AWARENESS on Services*
No Public Policy Makers
1 e-Government
2 e-Commerce
3 Web Based public services

4 Modern Applications
5 Smart City
6 NISW
7 Regulations
8 Infrastructure
9 e-banking/fintech
10 Innovations
*Self assessment: 1-5 stars 6
REASONS for Low Awareness Level
1. Too many regulations;
2. Sector ego;
3. Inconsistent in Planning and Implementation;
4. Scattered/ island of islands;
5. No road map on national transformation;
6. Lack of leadership;
7. No strong independent R/D center or think tank;
8. No single institution.
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 Proposed SOLUTIONS
1. Integrated road map on ICT (Infrastructure,
Application, Technology, Security, and HRD);
2. Future/New Economy in 1 office (DG of Future
Economy; DG of Application; DG of ICT Resources; DG
of Security and Ethics; DG of Services);
3. Changing the mindset especially for policy makers;
4. Establish Modern ICT R/D Centers and Enhancing
Society.

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 Eddy Satriya
1989 :Graduated from Bandung Institute of Technology (Telecommunication
Engineering)
1997 :Graduated from University of Connecticut (MA in Economics)
1989-90: Program Management Consultancy (PMC-IV) for
Telecommunication Development
1990-2005: Working in Bappenas (The National Development Planning
Agency).
1995 : Secretary to Board of Commissioners of PT.Telkomsel
1997- present: Visiting Lecturer in University of Indonesia, University of Pelita
Harapan, and ITB

Contact: 2002-present : Actively writes various article and column in national papers
and magazines.
satriyaeddy@gmail.com
2005 (Dec)-present: Working in Coordinating Ministry for Economics
eddysatriya@ekon.go.id Affairs
62.21.3511466 t
62.21.3511464 f 2011 - Present: Head of International Cooperation Division, Secretariat
of KP3EI
Recent publications are eddysatriya.wordpress.com
available on: kolom.pacific.net.id
THANK YOU

Picture of Gililawa, NTT, Indonesia by Nurhasan Akbar

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ATTACHMENT

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 Kondisi Perekonomian 2017
Pertumbuhan ekonomi masih berlanjut pada TW II 2017 sebesar 5.01% dengan pertumbuhan mulai merata, kecuali pengeluaran pemerintah.
Dari sisi pengeluaran, pertumbuhan ekonomi terutama didorong oleh Konsumsi LNPRT (8.49%yoy), Pembentukan Modal Tetap Domestik Bruto
(5,35%yoy), dan konsumsi RT (4.3%yoy)
Dari sisi sektor ekonomi, pertumbuhan ekonomi terutama didorong oleh Informasi dan Komunikasi (10,88%yoy) dan Jasa Lainnya (8,63%yoy)

Pertumbuhan Menurut Pengeluaran Tw II - 2017(%yoy) Pertumbuhan Menurut Sektor Tw II - 2017(%yoy)

Industri Pengolahan 20.26

3.54
Pertanian, Kehutanan, dan Perikanan 13.92
3.33
55.61 Perdagangan Besar & Eceran; 13.03
Pertumbuhan (%yoy) 3.78
Konstruksi 10.11
Distribusi (%) 6.96
Pertambangan 7.36
2.24
Transportasi dan Pergudangan 5.27
8.37
Jasa Keuangan dan Asuransi 4.21
31.36 5.94
Informasi dan Komunikasi 3.83
10.88
Adm. Pemerintahan, Pertahanan -0.03 3.63
19.1 17.79
Jasa Pendidikan 3.23 Distribusi (%)
0.9
Akomodasi dan Makan Minum 2.83
8.63 8.49 5.07
4.95 5.35 -1.93 Real Estate 2.8 Pertumbuhan
3.36 3.86
0.55 1.18 1.75 (%yoy)
Jasa lainnya 8.63
Jasa Perusahaan 1.74
8.14
Listrik dan Gas-2.53 1.17

Jasa Kesehatan dan Kegiatan Sosial 1.05

6.4 12
Sumber: BPS Air, Sampah, Limbah dan Daur Ulang 0.07 6
3.67