AmCham + IBM Breakfast Forum: “Government 4.0: Utilizing Data to Optimize Government Decision Making”

Thank you.

For IBM, Indonesia has the perfect mix of energy and deep potential, which makes it a great backdrop for our discussions this morning.

I would like to thank AmCham Indonesia for your partnership in hosting today’s forum and for your continued support.

I would also like to welcome and acknowledge:

• Kate Wolley, General Manager, IBM Ecosystem
• Roy Kosasih, President & Director, IBM Indonesia
• Semuel Pangerapan, Ministry of Communications and Informatics
• Edwin Manangsang, Coordinating Ministry of Economy
• Oscar Baskoro, Ministry of Health
• Guests, IBMers, ladies and gentlemen.

 

Eight months ago, during the inaugural AMCHAM-IBM Government Forum, I shared my thoughts on Technology as a source of fundamental competitive advantage and the transformative impact of technologies such as hybrid cloud and artificial intelligence.

At that time, Asia Pacific economies were in the early phases of re-opening borders after the lockdowns brought about by COVID-19. That context amplified the importance and urgency of digital transformation and also set the stage for ACT 1 of IBM’s Strategic Focus on Indonesia.

Since then, we have followed our commitment with action. We have launched a new IBM Academy in Batam, which I’ll talk more about in a moment, we have recruited more than 30 technology specialists to deliver innovative solutions to our Indonesian clients, as well as appointing a new President & Director for IBM Indonesia. I’m thrilled to introduce Roy shortly. These actions are evidence of how serious IBM is to partner and grow in Indonesia with Indonesians.

Let me now talk to you about ACT 2, by setting the context for what’s next.

We meet at a time when technology adoption is at a turning point.

The world is experiencing an unprecedented wave of disruption: surging inflation and interest rates, an intensifying war for talent, growing cyberthreats, and the urgent need for climate action.

In each of these areas, technology is a vital part of the solution. Not a cost but a foundation for competitive advantage and growth.

Leveraging hybrid cloud and AI is already enabling governments and enterprises across Asia Pacific and the rest of the world to boldly reshape operating models and provide greater value and service to customers and citizens.  

The pandemic has also accelerated digitalization globally.

According to IBM research, more than 60% of organizations accelerated investments in digital technologies due to the business impacts of COVID-19. Two-thirds (66%) said the pandemic allowed them to advance transformation initiatives that had previously encountered internal resistance.

In the Asia Pacific region, 65% of GDP now comes from digitally transforming enterprises and governments.

Going forward, every government, every industry, and every company will be defined by how well they leverage technology.

Indonesia’s position

Indonesia is in a strong position in the digitalization race.

Your digital economy is the largest in Southeast Asia. Valued at US$70 billion dollars at the start of the decade, it will more than double in size to US$146 billion dollars by 2025. 

However, I would suggest four key issues should be addressed for Indonesia to reach its full potential. These relate to:

• optimizing data
• cybersecurity
• sustainability
• skills and digital inclusion.

 And I’d like to share some brief observations on each in the time I have left.

 

Top technology issues

Optimizing data

First, let’s talk about optimizing data.

It is well known that Indonesia has a strong stance on data sovereignty. All public sector data must be managed, stored, and processed in Indonesia.

And the government has embarked on an ambitious national data center initiative.

However, agencies must consider how they can best make use of all the information that is hurtling their way.

Will it be siloed or available across government?

Unified platforms enable agencies and organizations to integrate, share, and analyze data for more powerful, real-time insights into operations and citizens’ needs.

Jakarta Smart City, for example, is integrating data from a range of sources to help deliver better services to citizens of Indonesia’s capital city. Analytics identifies what is happening on the ground.

This allows government agencies to make faster, more informed decisions, measure the impact of their policies, and deliver better results.

 

Cybersecurity

Hand in hand with data comes cybersecurity.

Greater connectivity and reliance on cloud services brings great opportunities. But it also invites more cyberthreats, increasing risks to government agencies, critical infrastructure, and businesses.

According to the latest IBM Security X-Force Study released last week, the top three industries attacked are manufacturing, financial services, as well as professional business and consumer services.

This vulnerability places enormous stress on economies such as Indonesia where these industries contribute close to 40% of GDP. 

To counteract this, we strongly urge government agencies to place security and resilience at the center of digital transformation efforts.

 

Sustainability

Thirdly, IBM understands how sustainability is a key issue for Indonesia. The archipelago is highly vulnerable to climate change impacts like rising sea levels.

The commitments of Indonesia through its National Green Growth Program and pledge to reach net zero emissions by 2060 should be applauded.

But ESG reporting continues to be a problem for many organizations. Put simply, you can’t improve sustainability performance unless you are measuring and interrogating the right data.

This is another area where IBM believes cloud computing and AI can have valuable impact -

helping organisations accelerate and demonstrate progress towards sustainability goals, unlock potential benefits for brand reputation, revenue, and even talent retention.

Organisations that act now can not only help alleviate the climate crisis, but also play a crucial role in broader sustainable development opportunities that will shape generations to come.

Beyond environmental impact, sustainable development can lead to more highly paid job opportunities, strengthen industries and communities, and make organizations more competitive and resilient in the long run. 

Through public-private partnerships and technology innovations, these issues can be addressed more holistically across business, social, environmental, political and other spheres which are strongly interconnected.

 

Skills and digital inclusion

My final message to you is that the greatest inhibitor to digital transformation in any nation is a shortage of skills.

The World Bank predicts Indonesia will likely experience an annual shortage of about 600,000 ICT workers from 2030 onwards.

To counteract this, we must provide more relevant educational experiences for people commencing their first job.

We must also upskill existing workers. At their best, technologies like automation and AI can be used to empower employees.

But training current and future workers cannot be done by government alone. It requires innovative partnerships with industry.

That is why we launched the IBM Academy for Hybrid Cloud and AI in Batam last week, with our education partner Infinite Learning.

We are also grateful for the support from Indonesia’s Ministry of Education and Ministry of Communication and Informatics.

Students will build digital credentials through free access to the Red Hat certified System Administration course.

They will also be able to study industry-standard AI and Cybersecurity courses via IBM’s SkillsBuild program, and gain practical experience through hands-on labs and real-world industry case studies.

The Academy for Hybrid Cloud and AI will directly contribute to IBM’s pledge to help provide 30 million people of all ages with the skills needed for the jobs of tomorrow by 2030.

 

The future will be powered by digital skills – and education must be high on the agenda of every corporation and every government.

In closing, let us recognize that Asia Pacific remains an economic bright spot globally.

The International Monetary Fund predicts growth will slow in 2023. However, it also suggests that faster adoption of digital technologies can boost productivity and resilience.

One thing is certain: governments cannot afford to go back to the way they operated before the pandemic, nor slow their pace of digitalization.

By focusing on:

• optimizing data
• cybersecurity
• sustainability, and
• skills and digital inclusion

I strongly believe Indonesia can build on its strengths, address the complex challenges facing the nation today, and step into a bright future.

 

Thank you.

Now, I am pleased to introduce and welcome Roy Kosasih, president and director of IBM Indonesia, to share his perspectives on the local market and key technologies for Indonesia to build a vibrant future digital economy.

END