During the COVID-19 pandemic, the virtual world has become much busier than ever before. This has happened as more and more people have turned to their gadgets and computers as a means of survival to replace various in-person activities. These changes in society have impacted economic development by accelerating its digital transformation. Regarding the topic of discussion, Prof. Sri Adiningsih, M.Sc., Ph.D., as Professor of Economics at the Faculty of Economics and Business UGM, delivered a lecture titled “Covid-19 Impact on Digital Economy: Indonesian Case” on Tuesday (27/07) as part of the International Week 2021 (IWEEK 2021) virtual summer program.
On this occasion, Prof. Sri Adiningsih broadly discussed the impact of the COVID-19 pandemic on the digital economy. Based on year-to-year data, the COVID-19 pandemic has increased unemployment and poverty rates. However, we can be grateful that when the pandemic hit Indonesia, digital transformation actually developed and even disrupted business and the economy. The development of the digital economy that has been present around us, for example, such as in various forms of e-commerce and also financial technology (fintech) services, has become increasingly prevalent among the public. Therefore, it can be said that the digital economy is developing, and the pandemic is accelerating its digitalization.
Furthermore, Prof. Sri Adiningsih explained several points on how the COVID-19 pandemic crisis can accelerate digital transformation. First, the drive to reduce in-person interactions during the COVID-19 pandemic has prioritized digitalization and automation. Second, since the onset of the pandemic, digitalization and automation have been accelerated, partly because their adoption helps reduce the need for physical contact. In addition, Prof. Sri Adiningsih mentioned that even amid a global crisis, the pandemic has further accelerated digital transformation worldwide.
In her next discussion, Prof. Sri Adiningsih also noted that the number of micro firms and manufacturing firms adopting digital platforms increased by 59% since October 2020. According to her, Covid-19 has prompted shifts in consumer and business behavior, many of which will persist to varying degrees over the long term. There were 4 sectors that are estimated to be in high demand in the post-COVID era, namely the Education sector, whose access is increasingly widespread thanks to online learning innovations, the Healthcare sector, which continues to develop with technological developments, the Fintech sector where digital lending and online investment are gaining momentum, and the e-Commerce sector where the number of online shoppers has surged in this pandemic era.
At the end of the discussion, she concluded that the digital economy has grown rapidly over the last decade, and the pandemic has accelerated this growth. The online lifestyle will stay; some will be run using mixed methods (online and offline) after the pandemic era. Within a decade or two, the digital economy will expand further, and all economic sectors across all regions will be digitized. Existing businesses should anticipate and adapt to survive and grow.
Reportage: Kirana Lalita Pristy.
