Cashless Society: The Epic Transformation of Digital Economy and Payment Systems in China

Now, take a look at Indonesia. With  93.4 million internet users and 71 million smartphone users, Indonesia is experiencing a high rate of digital economic growth. This is indicated by the emergence of startup companies whose valuations are even above US$ 1 billion. These companies are scattered in the online transportation sector, e-commerce, fintech, and travel agents. Bukalapak, Traveloka, Go-Jek, are platforms that are the pioneers of economic development in Indonesia. The growth in the value of online business sales in the country every year has increased by 40%. In 2020, the volume of e-commerce business in Indonesia is predicted to reach  US$ 130 billion with an annual growth rate of around 50%. In 2025, Indonesia's digital economy is poised to become the largest in Southeast Asia.  

The above data can be true and can be wrong. There are many challenges that the Indonesian government must really pay attention to. Keep in mind that to achieve digital economic success, is it important for all people to get access to the same telecommunications services. While Indonesia is still experiencing a digital divide. In addition, the magnitude of market opportunities for the digital economy is not matched by the number of qualified and appropriate human resources needs of the industry. Limited human resources in Indonesia are not in line with the massive growth of digital business activists. Also, the rapid development of existing business actors and technology is not matched by adequate regulations. Changing policies and schemes that are unknown to business actors are obstacles faced by start-up actors.

The transaction sector is also not optimal. People have started to dare to make transactions in cashless, but for offline transactions, they often use cash. Although The online third-party payment solutions such as Go Pay, Ovo, DANA, already exist in Indonesia. Logistics is also one of the problems that must be corrected immediately if it is to realize broad digital economic growth. With no changes in policy or innovation, it would take 13 years for  Indonesia to catch up to Singapore's current level of digital development (Bhaskar, 2016). In conclusion, there are six factors - funding, internet connection, consumer trust, digital talent, logistics and payment methods -- that limit digital economic growth in Indonesia. 

What's next?

The lesson from the success of China's economy can be taken into consideration for Indonesian policy makers to intensify its economic growth. I do believe that it takes all parties in order to build Indonesia. The factors that become challenges must certainly be considered to develop our digital economy. And I believe that there are so many great things that Indonesian can learn from China to support future development of economy. We will follow China's footsteps in the future through digital economic development. Maybe, in the future, Indonesian start-up such as Bukalapak, Go-Jek, Traveloka, will be able to compete and surpass Alibaba. Cashless society? Just wait. Keep fighting, Indonesian StartUp companies!