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Promising sectors to work for in Indonesia (Part 3)

On part 1 and part 2 I have covered 5 sectors that have tremendous opportunity in the future. Those 5 sectors are agriculture, renewable energy, marine, education, and environment. In case you miss both, find part 1 here and part 2 here.

In this article I would like to explain about one other sector that has tremendous opportunity. That sector is digital technology.

Disclaimer, I don’t have any tech background. I make this article by reading articles and reports then condensing it into this article so I would like to apologize if there are mistakes in naming, terms, understanding, etc. Your constructive feedback is well appreciated :)

The digital age is claimed as the forth industrial revolution. This revolution has the potential to transform huge portion of our daily life from how we make decision, obtain service and products, and do business. According to “Unlocking Indonesia’s Digital Potential” report by McKinsey & Company, if Indonesia embraces digitization, it can realize an estimated 150 billion in growth, equal to 10% of GDP, by 2025. If you are interested to read the full report, you can find it here

Digital revolution is driven by four types of technologies which are:

1. Mobile internet penetration

In 2016, Indonesia’s internet penetration rate is still at 34%. This rate is around half of Malaysia and far lower than Japan. However Indonesia’s internet user base is set to boom due to the growing access of the mobile internet connection as well as the inexpensive smartphones. Indonesia is expected to add around 50 million new internet users from 2015-2020, reaching 53% of internet penetration rate.

Surprisingly, Indonesian internet consumers are relatively digitally savvy compared to American users. Find the comparison on the infographic below:

2. Cloud computing technology

According to Microsoft, Cloud computing technology is cloud computing is the delivery of computing services—servers, storage, databases, networking, software, analytics and more—over the Internet. It reduces the barrier for a lot of companies (especially startup) to develop their business because it’s cheaper, more flexible, and space efficient compared to physical hardware. Some of the examples of cloud computing technology are Microsoft Azure, Amazon Web Services, and Google Cloud Platform.

Source: Google's, Amazon's and Microsoft's Website

In 2014, for the first time, more information workload was processed via cloud than in the traditional IT space. International Data Corporation estimates that the total of cloud market in Indonesia is US$ 308 million and will go to US$ 378 in 2017 estimated to grow on 22-36% annually. The increasing usage of cloud technology will increase efficiency (cost, time, and access) dramatically in the future.

3. Internet of Things (IoT)

IoT is technology that connects devices with an on and off switch to the Internet. This includes everything from cellphones, cars, machines, lamps, tractors, and almost anything else you can think of. In the US, Amazon deploys IoT to create Amazon Go, technology that connects apps in your smartphone with your shopping activity. This allows customers to go in to a store, buy some products and go home without having to wait in line (of course you will pay using your registered credit card).

See the full video about Amazon Go here

One of the implementation of IoT in Indonesia is in Jakarta Smart City (JSC). Jakarta Smart City (JSC)’s Portal shows various data and information, including but not limited to traffic jam, demography, broken roads, and many more. With the existence of this portal, it helps Jakarta’s Government to be more data driven in their operations.

4. Big Data and Analytics

With increasing of internet and social media usage, immense amount of data has been accumulated. The data that we are talking about is ranging from general information such as name, date of birth, email address, and gender to specific information such as purchasing behavior, interest, and activities in social media. This data is leveraged to make many decisions that back then were mostly driven by intuition.

Starbucks, McDonalds, and Dunkin Donut use data from social media and credit card transaction to map location with income, favourite food, number of kids, etc. LinkedIn has algorithm to promote job vacancies that suit your profile while Facebook, instagram, and youtube tailor your home page to increase your engagement leveraging data about your past activities. GO-JEK leverages their data to serve customers better during Ramadhan period.

With huge growth in digital industry, there is huge demand of talents to work there. Unfortunately, most of us are not yet ready for this era. We are still trapped on the old way of thinking and doing things. How can we prepare ourselves for our future? I have some thinking about it and happy to share it on my next article 😊


Kreatif Memilih Jurusan by Ina Liem

Unlocking Indonesia’s Digital Opportunity by McKinsey & Company

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