Legal Essay ALSA LC Unud Volume 05 No. 6

ALSA Local Chapter Universitas Udayana

LEGAL ESSAY Volume 05 No. 6 “The Modern Creativity, Enlightened Potentials of Indonesia to Creates Swift Transition of Economic System by Digitalization”

Author: Agustini Mawar Hartati

ALSA Local Chapter Universitas Udayana

In 2045 Indonesia will be 100 years old, aka a century of independence for the Republic of Indonesia, this is where the idea of the Indonesian Golden Generation in 2045 was born. Based on the data,1 it is estimated that in the 2045 period Indonesia will receive a demographic bonus, namely the total population of Indonesia is 70% in productive age (15-64 years). Taking advantage of the explosion of the productive age generation in the future, the state is expected to be able to instill the young generation's willingness to advance the nation and state, improve comprehensive, productive, and innovative intelligence, develop a strong generation of moral character, maintain socialization skills even abroad, and have superior civilization.

So, the quality of the state will be largely determined by its young generation, it can be said that they inherit the future of the Indonesian nation. Therefore, preparing the younger generation is very important, where resources are needed who have knowledge and creativity in the procession towards the 'Golden Era' of Indonesia. Considering this generation will hold the seat of state government in 2045, especially the wheels of the country's economy, which must be revived after the pandemic, many assume that Indonesia will enter an economic transition, a significant change in the economic system. With the progress of the times, there will always be changes. Likewise, the world economy, Indonesia as a country is also experiencing these changes where the country follows the times, the transition of the economic system. Especially in the Covid-19 situation where physical contact is very limited,2 it becomes a challenge for the state to inevitably enter into the transition of life sectors, especially the socio-economic sector. Many countries in the world are competing to advance their economy through this economic transition period. The state learns to adapt to a new economic system, which is digital-based. This digital economic system3 is characterized by the emergence of various digital applications that open up business spaces, digital applications as a transaction method/means of payment, and the presence of new technologies in the operation of small economic sectors that facilitate their activities. Nowadays, technology affects various aspects of human life, especially in everyday life. In the past, 1

Indonesiabaik.id, Siapkah Kamu jadi Generasi Emas 2045 (Indonesia Baik, 2021) <https://indonesiabaik.id/infografis/siapkah-kamu-jadi-generasi-emas-2045> accessed 2 May 2022.

2 Mohammad Mulyadi, ‘Partisipasi Masyarakat dalam Penanganan Penyebaran Covid-19’ (2020) 12(8) Kajian Singkat Terhadap Isu Aktual dan Strategis <https://berkas.dpr.go.id/puslit/files/info_singkat/Info%20Singkat-XII-8-II-P3DI-April-2020-192.pdf> accessed on 2 May 2022 3 Kementerian Komunikasi dan Informatika Badan Penelitian dan Pengembangan SDM, 2019, PERKEMBANGAN EKONOMI DIGITAL DI INDONESIA PERKEMBANGAN EKONOMI DIGITAL DI INDONESIA STRATEGI DAN SEKTOR POTENSIAL, Kapuslitbang Aptika dan IKP, Jakarta, hal,4-5. [“Perkembangan Eko Digital INA”].

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people had to carry money in physical form wherever they went, but as the times progressed, credit cards were created, a place to save our money so that in transactions we only needed to carry the card. Further, it is growing, people only need to carry a smartphone everywhere, because the smartphone already contains our medium of exchange for transactions called e-wallet or e-money.

Zimmerman,4 said that the concept of the digital economy is the global impact of the rapid development of information-communication technology on socio-economic conditions.5 Human interaction is growing to the point of breaking down the boundaries between them, with human mastery of technology a new term appears called the digital era.6 In general, we can say where a situation can be described as digital economic when all activities utilize the internet and digital devices. This is where distance is no longer a thing that interferes with human activities, especially in the field of the information economy, which is wide open and accessible throughout the world, replacing the previous conventional methods. Totals of 212.35 million people in March 2021 were recorded as active Indonesians using the internet based on databoks.id,7 which is the third-largest internet user in Asia. E-commerce sales in Indonesia are predicted to grow by 133.5% around US$ 16.5 billion or around Rp. 219 trillion in 2022.8 According to data,9 along with the time, the largest contribution of online transactions is made by Generation Z. This is a big number of populations. The significant number of Indonesians who often shop online must be balanced with the growth of e-commerce management itself. The potential to build and develop the digitization of the economic sector can be seen from this fact, namely the high number of users and the penetration of state internet users. In response to manage the potential of the digital economy, Indonesia influenced by the modernization of information and infrastructure development in the information, communication and technology sectors. From the facts above, the Indonesian people are proven to be able to follow the development of electronic shopping in the concept

4

Hans-Dieter Zimmermann, ‘Understanding the Digital Economy: Challengers for New Business Models’ (AMCIS 2000 Proceedings, 2000) Page 402.

5 Perkembangan Eko Digital INA, hal.11.

6 Nurhadiah and M. Insya Musa, ‘Dampak Pengaruh Globalisais bagi Kehidupan Bangsa Indonesia’ (2014) 3(3) Jurnal Pesona Dasar, [10].

7 Viva Budy Kusnandar, Pengguna Internet Indonesia Peringkat ke-3 Terbanyak di Asia (Katadata.co.id., 2021) <https://databoks.katadata.co.id/datapublish/2021/10/14/pengguna-internet-indonesia-peringkat-ke-3-terbanyakdi-asia> accessed 30 Apr. 2022.

8 databoks, Penjualan e-Commerce Indonesia Mencapai US$ 16 Miliar (Katadata.co.id, 2022) <https://databoks.katadata.co.id/datapublish/2018/02/12/2022-penjualan-e-commerce-indonesia-mencapai-rp-16 -miliar> Accessed 30 Apr. 2022.

9 ibid.

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of e-commerce. Okeleke,10 share several landscapes in ASEAN, especially the Southeast Asia Region on how countries respond / respond to the presence of this digitalization. Seeing the community's response, Indonesia belongs to the second landscape, namely Transitions Digital Societies. Where countries take advantage of digitalization for the needs of personalizing services between individuals and institutions. In this landscape, the purpose of using digitalization is to achieve economic profit.

The transition to the digital economy in Indonesia is marked by first, the presence of e-commerce, which significantly improves the country's economy, modernizes business, makes business easier by not requiring a market or physical business subjects. Simply,11 E-commerce is a commercial transaction using internet media. The impact of this is also widening the reach of the business, lowering operational costs, simplifying the production cycle, limiting business operating time, providing faster and more efficient service to consumers, even being environmentally friendly by reducing paper use at various stages of production to marketing.

Second, the development of the digital financial services industry or known as financial technology (fintech). This fintech concept optimizes people's purchasing power in the form of non-cash payments, which has an impact on increasing the country's economy.

Fintech is able to lift the country's economy, it brings efficiency and convenience to electronic business, expands the range of public transactions, and accesses finance with more competitive operational costs. Where is the certainty of public access to guaranteed financial services and the protection of e-commerce transactions.12 In understanding the progress of fintech, Indonesia has included financial literacy in the Financial Services Authority itself, namely in regulation Number 76/POJK.07/2016.

Referring to the interview conducted by Indonesia.go.id,13 a handicraft businessman named Setyowati, who set foot into the economic transition. In the midst of the pressure of the pandemic, she launched her sales system on all digital platforms. She admitted that the presence of e-commerce makes it easier and makes business more efficient and optimal.

10

Okeleke, et al (2016) “Advancing Digital Societies in Asia”. TRPC & GSMA Inteligence.

Zein, O. and Muktaf, M., E commerce sebagai Agen Konsumsi di Era Media Baru. [online] Available at: http://repository.umy.ac.id/bitstream/handle/123456789/3874/E%20Commerce%20di%20Era%20Baru%20Pem asaran.pdf?sequence=1 [Accessed 3 May 2022], page.4.; Wahyono, Teguh, 2006, Etika Komputer: Tanggung jawab Profesional di Bidang Teknologi Informasi, Penerbit ANDI, Yogyakarta.

12 Peraturan Nomor 76/POJK.07/2016 13 Indonesia.go.id.

Bisnis E-Commerce semakin Menjanjikan (Indonesia.go.id, 2022) <https://indonesia.go.id/kategori/editorial/4459/bisnis-e-commerce-semakin-menjanjikan?lang=1> accessed 3 May 2022.

11

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Chairman of the Indonesian E-Commerce Association (idea) Bima Laga,14 said that, the e-commerce industry elevate the country's economy. This can be seen from the ability of sellers, consumers, and transactions to increase rapidly. There might be many great businessmen that did not get enough attention or consumer because of their lack of knowledge of the internet and they cannot provide themselves with sufficient medium for digital era. Digital America,15 stated that with digitalization in America accelerating, great opportunity drive the productivity growth through new innovations in the realm of e-commerce. In fact, in responding to the economic transition to the digital economy era, America provides e-commerce majors at several universities as recorded in the QS Word University Rankings,16 namely Harvard University, Massachusetts Institute of Technology (MIT), Stanford University, and others. Such a good opportunity for country to develop their existence of potential.

In conclusions, with this massive population number in Indonesia gives us chance to awaken the transition economy. Yet, seeing the fact that some of the large population of Indonesian people who are still not fluent in the digital world, lack of internet access, as recorded in the Research Journal 'Access to Information Technology with the Human Opportunity Index (HOI) Approach'.17This digital or information technology inequality greatly affects welfare and results in socio-economic inequality, especially in the face of today's digital economy transition. So, reflecting on America's policy in responding to this economic transition period, Indonesia can apply learning methods for the development of creativity in the digital world, starting from education on the use of the internet for the entire community to the level of special majors at universities.

In order to achieve the 2045 Golden Era of Indonesia, youth generation should embrace themselves with all of these to develop their capability to face the economic transition into digital system. It is sufficient for country to emerge the education of internet access, knowledge of e-commerce and digital payment or fintech for the purpose of preparation to face the actualization of economic transition. As we can see in reality in Indonesia, still there are non-technology educated society. Government has to facilitate this 14

idEA, Indonesian E-Commerce Association (idEA, 2022) <https://idea.or.id/search?lang=id> accessed 3 May 2022.

15 Maanyika et al., 2015, Digital America, The McKinsey Global Institute (MGI), Amerika.

16 <https://www.topuniversities.com/university-rankings/university-subject-rankings/2019/business-management -studies> accessed 4 May 2022.

17 Riyaldi dan Putri Larasaty. (2019). INEQUALITY OF ACCESS TO INFORMATION TECHNOLOGY WITH HUMAN OPPORTUNITY INDEX (HOI) APPROACH, Seminar Nasional Official Statistics 2019: Pengembangan Official Statistics dalam mendukung Implementasi SDG’s, Jakarta. Hal.565-568.

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idea, which is the need to develop human resources of youth generations with such education on the digital economy.

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ALSA Local Chapter Universitas Udayana

https://databoks.katadata.co.id/datapublish/2021/10/14/pengguna-internet-indo nesia-peringkat-ke-3-terbanyak-di-asia [Accessed 30 Apr. 2022]. databoks (2018). 2022, Penjualan e-Commerce Indonesia Mencapai US$ 16 Miliar. [online]

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Baru.

[online]

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ALSA Local Chapter Universitas Udayana

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WITH

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(HOI)

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