Written by Marcel Johanes & Muhammad Dhafi Iskandar

If you are interested in learning more about India’s economic and technological achievements and how they can benefit the ASEAN region, you might want to check out our summary and insights from StepNesia on the discussion forum that took place on September 5, 2023, at the J.W. Marriott Hotel in Jakarta. The event was organized by the Indian Embassy in collaboration with the Indonesian Chamber of Commerce and Industry (KADIN) and the ASEAN Secretariat, as a side event of the ASEAN-Indo-Pacific Forum. The theme of the discussion was “Digital Transformation and Public Infrastructure for Enabling Economic Growth”, and it featured speakers from various sectors and backgrounds who shared their insights and perspectives on India’s vision and strategy for the Indo-Pacific region.

The event was part of India’s mission to ASEAN, which aims to strengthen the ties and cooperation between India and the ASEAN countries in various fields, especially economy and technology. The forum started with a presentation on India’s economic development, which has made it the fifth-largest economy in the world. They highlighted the role of business innovation and digitalization in driving India’s growth and resilience, especially during the COVID-19 pandemic. One of the examples of India’s digital innovation is the e-Rupee, a digital currency designed to facilitate transactions, reduce costs, and enhance security. The e-Rupee was launched in response to the challenge of cash shortage during the lockdown, but it has also become a tool for India to advance its digital economy and financial inclusion.

The forum also discussed India’s ambitious plan to become the world’s largest digital economy by 2047, which is based on several programs and initiatives that aim to boost infrastructure investment, digitize government services, and promote innovation and entrepreneurship. The speakers shared their views on how these programs can create opportunities and benefits for the ASEAN countries, as well as the challenges and risks that need to be addressed. It also explored the potential areas of collaboration and partnership between India and ASEAN in digital transformation and public infrastructure, such as smart cities, e-commerce, cybersecurity, renewable energy, and connectivity.

The discussion forum was a valuable platform for exchanging ideas and experiences between India and ASEAN, as well as for enhancing mutual understanding and trust. The event also demonstrated India’s commitment and contribution to the Indo-Pacific region, which is based on the principles of openness, inclusiveness, transparency, respect for international law, and shared prosperity. The forum was attended by representatives from government, business, academia, media, civil society, and other stakeholders from both India and ASEAN.

To achieve this goal, different strategies can be used at various levels, such as:

• Digital identification (Aadhaar, eKYC, GSTN)
• Interoperable payments (AePS, APB)
• Digital documentation (DigiLocker)

The event continued with a discussion between the spokespersons and various representatives, such as Ms. Sai Sudha Chandrasekaran (Invest India) as moderator, Mr. Rohit Sethi (Embassies of India), Mr. Debabrata Nayak, Mr. Setiaji, Mr. Hazremi Hamid (ASEAN Secretariat), and Mr. Gurjit Singh.

The moderator, Ms. Sai Sudha Chandrasekaran from Invest India, initiated the discussion by posing a question to the panelists about how Indonesia is advancing its economic development through digital transformation and public infrastructure. Mr. Setiaji, the head of Jakarta Smart City, shared his insights on the ongoing project of converting physical identity cards (KTP) to electronic ones (e-KTP) to enhance the access and security of information in the digital era. He also mentioned that the public infrastructure in Indonesia is prioritizing the health sector, especially in the wake of the pandemic, by providing online platforms for doctor consultation and health services.

Mr. Gurjit Singh spoke about several ways to achieve economic development, including: 

1. Open source.

He argued that open source can enable access to programs that support economic progress, such as education, health, and innovation. However, we need to be also wary that if open source is restricted by regulations or monopolies, it will limit the potential of these programs and hinder economic development.

2. Working with the government and business sector. 

It emphasized the importance of cooperation between the government and the business sector for economic development, as they have mutual interests and dependencies. He said that the government should not interfere with the economy in a way that reduces its value and growth, but rather provide a conducive environment for businesses to thrive. On the other hand, he also said that the business sector should not ignore the social and environmental impacts of their activities, but rather contribute to the public good and sustainability.

The next speaker was Mr. Hazremi Hamid. (ASEAN) explained that the involvement of ASEAN institutions in digital transformation and public infrastructure for enabling economic growth is essential. This is based on the different ways of economic development of each ASEAN member country, which allows cooperation between countries to express their commitment to building a common economy.

1. ASEAN has a diverse and dynamic economic landscape, with different levels of development and challenges among its member countries. This creates opportunities for cooperation and learning from each other, as well as for addressing common issues and goals.
2. ASEAN can leverage its digital transformation to enhance its economic competitiveness, resilience, and integration. Mr. Hamid said that digital technologies can help improve productivity, efficiency, innovation, and inclusion in various sectors and domains, such as trade, finance, education, health, and governance.
3. ASEAN can also invest in public infrastructure to support its economic development, such as transportation, energy, water, and telecommunications. Mr. Hamid said that public infrastructure can improve connectivity, accessibility, affordability, and quality of services and goods for the people and businesses in the region.

Here’s how ASEAN contributes to economic growth through digital public infrastructure and digital transformation:

1. Regional Connectivity and Digital Infrastructure

One of the prerequisites for digital transformation is having reliable, affordable, and accessible digital infrastructure. This includes broadband networks, data centers, cloud services, Internet of Things (IoT) devices and platforms, artificial intelligence (AI) applications, and other emerging technologies. 

ASEAN recognizes the importance of enhancing regional connectivity and digital infrastructure to support the digital economy. It has adopted several initiatives such as the ASEAN ICT Masterplan 2020, the ASEAN Framework on Digital Data Governance, the ASEAN Smart Cities Network, and the ASEAN Digital Integration Framework Action Plan 2019-2025.

These initiatives aim to harmonize policies and standards, foster collaboration and innovation, facilitate cross-border data flows and interoperability, promote digital inclusion and literacy, and develop intelligent and sustainable urban solutions.

2. Digital Transformation and Innovation

Another key aspect of digital transformation is fostering a culture of innovation and entrepreneurship in the region. This involves creating an enabling environment for digital startups, small and medium enterprises (SMEs), social enterprises, and other stakeholders to develop new products, services, and business models that can address the needs and challenges of the region.

ASEAN supports digital transformation and innovation through various platforms and programs such as the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME), the ASEAN Business Advisory Council (ABAC), the ASEAN Young Entrepreneurs Council (AYEC), the ASEAN Innovation Roadmap 2019-2025 and the ASEAN Prize.

These platforms and programs aim to enhance access to finance, markets, skills, technology, and mentorship for digital entrepreneurs, as well as to recognize and celebrate their achievements and contributions to the region.

3. Cybersecurity and Data Protection

A crucial aspect of digital transformation is ensuring cybersecurity and data protection in the region. This involves enhancing the resilience of digital systems and networks against cyberattacks, safeguarding the privacy and rights of data subjects, establishing trust and confidence among digital users and providers, and complying with relevant laws and regulations.

ASEAN is committed to strengthening cybersecurity and data protection in the region through various mechanisms such as the ASEAN Cybersecurity Cooperation Strategy, the ASEAN Ministerial Conference on Cybersecurity (AMCC), the ASEAN-Singapore Cybersecurity Centre of Excellence (ASCCE), the ASEAN-Japan Cybersecurity Capacity Building Centre (AJCCBC) and the ASEAN Framework on Personal Data Protection.

These mechanisms aim to enhance cooperation and coordination among member states and external partners, build capacity and awareness on cybersecurity issues and best practices, develop common standards and guidelines on data protection principles and practices, and facilitate cross-border data transfers while respecting national laws.

4. Digital Trade and E-Commerce

A vital aspect of digital transformation is promoting digital trade and e-commerce in the region. This involves enabling seamless and secure online transactions of goods and services across borders, reducing trade barriers and costs, increasing market access and opportunities for businesses and consumers, and supporting regional economic integration and development.

ASEAN is advancing digital trade and e-commerce in the region through various instruments such as the ASEAN Agreement on Electronic Commerce, the ASEAN Digital Integration Framework, the ASEAN Single Window, the ASEAN E-Commerce Database, and the ASEAN E-Commerce Regional Strategy 2025.

These instruments aim to harmonize legal frameworks and technical standards, facilitate paperless trade and customs clearance, collect and share data and statistics, and develop a comprehensive and coherent strategy to boost e-commerce growth and competitiveness in the region.

5. Public Services and Governance

A final aspect of digital transformation is improving public services and governance in the region. This involves leveraging digital technologies to enhance public sector efficiency, effectiveness, transparency, accountability, participation, and innovation, as well as to deliver better quality and more inclusive services to citizens and businesses.

ASEAN is improving public services and governance in the region through various initiatives such as the ASEAN Community Vision 2025, the ASEAN Socio-Cultural Community Blueprint 2025, the ASEAN Smart Cities Network, the ASEAN Open Data Initiative, and the ASEAN Digital Government Readiness Index.

These initiatives aim to align and monitor the implementation of the ASEAN vision and goals, foster smart and sustainable urban development, promote open data and data sharing among member states and stakeholders, and assess and benchmark the readiness and maturity of digital government in the region.

Furthermore, Mr. Rohit Sethi shared his insights on the digital transformation journey in Indonesia. He said that the country has a huge opportunity to grow its economy through digital transformation, but he also pointed out some of the key challenges that need to be overcome, such as:

• Improving the infrastructure for digital connectivity and access
• Enhancing the digital skills and literacy of the population
• Expanding the digitalization of public services and spaces by the government and other stakeholders
• Strengthening the cybersecurity and data protection measures
• Increasing the use of digital platforms and tools for marketing and transactions

He also suggested some of the public infrastructure components that need to be developed, such as:

• Edge computing, which enables faster and more efficient data processing and delivery
• Digital identity, which provides secure and verifiable identification for online activities
• AI and automation, which enhance productivity and innovation
• Blockchain and distributed ledger technology, which enable transparent and trustworthy transactions