Indonesia's Inclusive Economic Development Strategy

Abstract

Two developments are currently taking place in Indonesia, namely the process towards an inclusive economy and economic digitalisation. The main objective of this chapter is to review the extent to which Indonesia has achieved these two processes. To this end, this descriptive study analyzes secondary data from multiple sources, and the results show that Indonesia has made some progress in achieving both developments. But the results also give an important impression that in the short term, digitalisation of the economy can increase inequality because access to ICT or the internet is not evenly distributed. Therefore, this chapter emphasizes that extra efforts from the government are urgently needed so that the poor can get full access to ICT, including micro and small businesses, of which only a small number of them are implementing e-commerce, and the majority of them are located on the island of Java including Jakarta, which is the most developed region in Indonesia.