Digital Economy, the New Frontier for SMEs

Posted by AsiaViews | Oct 16, 2017 | 0 |

By Elżbieta Bieńkowska*

The Jakarta Globe

Oct 11, 2017

Indonesia is increasing its status as a global player and is a significant member of the Association of Southeast Asian Nations. It has shown remarkable growth rates and a complementary economy to the EU, which makes it a natural partner for us. I therefore believe we have a strong basis for partnership between Europe and Indonesia.

During my visit, I will have the pleasure of meeting Industry Minister Airlangga Hartanto, having the opportunity to discuss the importance of economic reforms and the need for modern industrial policies.

Last month, the European Commission presented a renewed industrial policy strategy in support of a globally strong Europe addressing innovation, digitization and de-carbonization. The objective of this industrial policy is modernizing European industry while being a fair partner for modernization in global supply chains. I know well that SMEs policy is at the heart of our respective economies.

For both of us they represent more than 99 percent of all enterprises. That is why we can learn from our experiences of providing support to the creation of a better business environment for them, that at the end will result in more jobs and higher growth. The importance of SMEs for the development of our economic relations is well reflected also in our bilateral negotiations for the Comprehensive Economic Partnership Agreement (EU-Indonesia CEPA) that will include provisions to allow SMEs to fully benefit from the agreement.

As European Commissioner in charge of the European internal market, industry, entrepreneurship and SMEs policies, one of my major initiatives is oriented at the expansion of the digital economy. Among the actions developed by the European Union to continue improving and modernizing its single market (that accounts for 500 million consumers and 21 million small and medium-sized enterprises) is the digital single market for Europe strategy.

This comprehensive strategy aims to open up digital opportunities for people and businesses. It will make Europe a good digital partner in the globalized world, as it will create a fairer, transparent and more competitive economic environment, where all companies will be subject to the same data protection and consumer rules.

With 338 million cellular service subscribers at the end of 2015, some 98 percent of whom were on prepaid plans, Indonesia is the fourth largest mobile telecommunications market in the world. The market is expected to pose further growth in the future.

Indonesia is also home to one of Southeast Asia’s most vibrant internet markets, with more than 88.1 million active internet users in January 2016, which represents an overall penetration rate of around 34 percent. Despite the continued growth, Indonesia faces a wide range of challenges in developing its ICT and digital economy.

Scattered over 17,000 islands – some 3,000 of which are inhabited – the nation’s geography presents a variety of unique hurdles with regard to the installation and operation of communications infrastructure, something where EU companies are well placed to cooperate. There are many areas of mutual interest. It is in this context that I will exchange views with Communications Minister Rudiantara here in Jakarta.

Finally, I need to underline the importance for us of the ASEAN secretariat’s presence in Jakarta. Connectivity-building regional integration is important for both of our regions. Europe continues to offer support to ASEAN’s regional integration process politically, financially and by sharing our experience, which I will highlight in my meeting with the secretary general of ASEAN, Le Luong Minh.

Elżbieta Bieńkowska is the European commissioner for internal market, industry, entrepreneurship and SMEs.

(http://jakartaglobe.id/opinion/digital-economy-new-frontier-smes/)

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EXTRICATING NDONESIAN CHILDREN FROM ISIS INFLUENCE ABROAD

Indonesia urgently needs to revisit the possibility of repatriating the neediest of its young citizens stranded abroad, whose families had earlier joined ISIS. Most of these children are in camps in northern Syria but there are also small numbers in the Philippines, Afghanistan and Iraq. “Extricating Indonesian Children from ISIS Influence Abroad”, the latest report from the Institute for Policy Analysis of Conflict (IPAC) argues that the government could begin by bringing back small groups of unaccompanied children under ten years of age, who pose minimal security risk and are most vulnerable to deteriorating conditions in the camps.“The problem is that health and security conditions are worsening by the day in the Syrian camps, and the children are growing older,” says Dyah Kartika, IPAC analyst. “They need access to schools, a nurturing environment, and medical attention. If the government waits too long, the children will be further exposed to ISIS ideology.” The new report examines a 2019 list of Indonesians in camps and prisons run by the Kurdish Syrian Democratic Forces (SDF). The Indonesian government has been trying to verify their citizenship, but with pseudonyms, misspellings and bad transliterations, it is a daunting task. At the time the data was collected, between March and June 2019, there were 555 Indonesians in SDF camps and prisons, including 367 children. Among the children, approximately 277 were under the age of ten and 34 were unaccompanied. In June 2021, there are fewer than ten children who are both unaccompanied and under the age of ten that could be prioritized for return. Bringing back children of ISIS families is no easy task. The report analyses the main challenges faced by the Indonesian government. These include definitional issues, bureaucratic competition, the difficulty of verifying nationality, evaluating the toll of exposure to conflict, assessing security risk, and finding relatives or others willing to provide care once the children are returned. In addition, COVID has meant stringent restrictions on travel, placing further obstacles in the way of repatriation. There are several models for rehabilitation of children exposed to violent extremism in Indonesia that could be modified to accommodate the needs of children repatriated from abroad. The report examines these models and argues that the government does not need to have every detail of rehabilitation programs in place before it starts extricating children from ISIS influence. It can start by bringing back the most vulnerable children and then modify programs as needed.

“It’s important that the government see these children as victims” says Dyah. “They deserve a chance to be children again.”

Digital Economy, the New Frontier for SMEs