Enhancing the digital infrastructure for all | IGF 2023 Open Forum #135

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During the forum, the individual made multiple requests to leave, expressing gratitude several times by saying “thank you.” The person also indicated their intention to say goodbye multiple times, using the phrase “bye-bye.” This suggests a polite and appreciative attitude toward the audience and participants.

Although the reasons for wanting to leave were not explicitly stated, it can be inferred that the individual has completed their participation or has other commitments to attend to. Overall, their repeated expressions of gratitude and farewell indicate a respectful and appreciative departure from the forum.

The individual’s gestures and words demonstrated a gracious and courteous exit, leaving a positive impression on the audience and participants.

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The digital economy has great potential and is experiencing faster growth compared to the traditional economy. A 10% increase in internet adoption leads to a 0.5 to 1.2% growth in income, while a 1% increase in adoption of digital technology is associated with a labor productivity growth of 1 to 2.0%.

The size of the digital economy is rapidly increasing and now accounts for between 5 to 7% of GDP. However, there is a disparity in company growth across regions, with GAFA and Microsoft dominating the market. Companies in the East Asia and Pacific (EAP) region have experienced slower growth, possibly due to a lack of knowledge and skilled workers.

To address these challenges, discussions and partnerships involving multiple stakeholders are necessary. Daisuke Hayashi advocates for a diversified approach that involves both the public and private sectors in enhancing digital skills. Efforts are being made to address the digital skills gap, particularly among the younger generation, and support the development of skilled individuals in local areas.

There is a shift in focus from cybersecurity to the development of digitally skilled individuals. It is necessary to improve digital skills and foster digitalization through public-private collaboration. International exchange is also encouraged to drive innovation in the digital economy.

Overall, it is essential to improve digital skills and ensure equitable growth in the digital economy.

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During Indonesia’s presidency in the Digital Economy Working Group (DWG) 2023, they placed a strong emphasis on the importance of digital skills. As part of their efforts, they launched three output documents aimed at improving digital skills and digital literacy.

These documents include the Compendium of Framework of Practices and Policies on Advanced Digital Skills and Digital Literacy, the G20 Toolkit for Measuring Digital Skills and Digital Literacy, and a collection of policies and recommendations to improve meaningful participation of people in vulnerable situations in the digital economy.

These initiatives demonstrate Indonesia’s commitment to equipping its citizens with the necessary skills to thrive in the digital era.

Indonesia also actively participates in the BUD Forum, led by the Ministry of Communication and Informatics. They carry out priority deliverables in this forum, further highlighting their commitment to the development of the digital economy.

One of the key priorities of Indonesia’s presidency in the DWG 2023 is to bridge the digital divide.

By prioritising digital skills, Indonesia aims to bring economic prosperity and social inclusion on a global scale. They recognise that the digital divide hinders progress and are committed to ensuring that all individuals have access to the necessary resources and opportunities to thrive in the digital era.

Furthermore, Indonesia places great importance on developing a robust digital infrastructure.

They understand that reliable and high-speed internet is the backbone of digital information and plays a crucial role in supporting economic growth and development. As such, Indonesia actively engages with international fora, including ASEAN and ITU, and seeks support from multinational entities to build and maintain a robust digital infrastructure.

In addition to these priorities, Indonesia also focuses on promoting e-governance and the digitalisation of government services.

By involving the public sector in these efforts, they aim to streamline administrative processes, enhance transparency, and make it easier for citizens to access essential services.

Indonesia also recognises the importance of cybersecurity and data protection in the digital age.

They collaborate with both the public sector and international organisations to establish data protection laws and enhance cybersecurity measures. This reflects their commitment to create a secure and trustworthy digital environment.

Another area of focus for Indonesia is digital education.

They understand that digital skills are crucial for preparing the workforce of tomorrow. To facilitate this, they actively engage in public-private partnerships to develop and implement digital education programmes that train individuals in necessary digital skills.

Lastly, Indonesia emphasises the importance of inclusivity and cultural diversity in the digital space.

Being a country with diverse cultural entities, Indonesia recognises the need for content in local languages and subsidising access to digital services. They strive to ensure that everyone, regardless of their background, has equal access to the benefits of the digital world.

In conclusion, Indonesia, under its presidency in the DWG 2023, is committed to advancing the digital economy by prioritising digital skills, bridging the digital divide, developing reliable digital infrastructure, promoting e-governance and cybersecurity, providing digital education, and fostering inclusivity and cultural diversity.

These efforts demonstrate Indonesia’s dedication to harnessing the power of digital transformation for economic growth and social development.

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The Association of Southeast Asian Nations (ASEAN) is recognizing the potential of a single digital economy, as it is currently the fifth largest economy in the world, with a market worth $3,000 billion USD. The region has a significant consumer base of 300 million people, which has been further amplified by the pandemic’s acceleration of the digital transformation in ASEAN.

Despite this positive development, there are challenges in the journey of digital transformation in the region.

One major challenge is the varying levels of digital readiness among ASEAN countries. Some countries are better prepared for the digital transformation than others, which creates a gap in terms of embracing the digital economy. Another challenge is the issue of cybersecurity, with a significant divide between the lowest and highest performing nations in terms of cybersecurity measures.

This poses a risk to the stability and security of the digital ecosystem in the region. Additionally, emerging technologies like AI and Cloud Computing are having an impact on the labor market, further complicating the challenges of digital transformation.

Another pressing concern in the ASEAN region is the urgency for skill development and training.

It is estimated that 10-20% of jobs will be displaced by digital technology in the coming years. However, there is a shortage of digitally skilled professionals in ASEAN, resulting in a need for about 50 million additional digital professionals. This highlights the need for comprehensive measures to bridge the digital divide and upgrade skills in the region.

ASEAN is taking proactive steps to address these challenges.

Various ASEAN bodies, such as SME, Science Technology, and Education, are setting up facilities to enhance digital knowledge and skills. The aim is to make currently unskilled workers relevant and train higher-level professionals to meet the demands of the digital economy.

Inclusivity in the digital economy is a priority for ASEAN.

Efforts are being made to equip micro, small, and medium-sized enterprises (SMEs) with digital knowledge through initiatives like the ASEAN SME Academy. This will enable these enterprises to participate more actively in the digital economy and benefit from it.

Additionally, ASEAN is actively working on improving the logistics system and developing a digital payment system across the region.

An agreement has already been secured to enhance cross-border e-commerce and digital payment using QR codes. These efforts aim to promote seamless integration and efficiency in cross-border transactions.

Addressing digital security is also a priority for ASEAN. Plans are underway to develop a system for digital ID or digital business ID, with the goal of creating an interoperable platform for businesses and consumers.

This will enhance digital security and facilitate trustworthy digital transactions in the region.

In conclusion, ASEAN recognizes the potential of a single digital economy and is actively pursuing measures to accelerate the digital transformation. However, challenges such as varying levels of digital readiness, cybersecurity, and job displacement persist.

The urgency for skill development and training in ASEAN is apparent, and initiatives to bridge the digital divide and upgrade skills are being implemented. Inclusivity in the digital economy, improvement of logistics and digital payment systems, and the development of digital ID systems are also key areas of focus.

By addressing these challenges and embracing digital advancements, ASEAN aims to thrive in the digital age.

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Mercari, a popular peer-to-peer trading platform, is actively promoting a circular economy and expanding its global reach. With a customer base of over 20 million and gross merchandise volume (GMV) reaching 100 billion yen last year, Mercari is dedicated to reducing the disposal of items and encouraging sustainable consumption practices.

Their initiatives include equipping high school students with digital skills and digital marketing skills through project-based learning programs. They collaborate with local educational institutions in places such as Wakayama and Kyoto, providing opportunities for students to sell local products on their platform.

In addition, Mercari supports IT education and aims to increase the number of female engineers by donating to Kamiyama Tech College and conducting workshops for engineers and local communities. They also recognize the importance of hands-on interaction and dispatch specialist engineers to local schools and companies, facilitating real-life learning experiences.

Furthermore, Mercari understands the global significance of implementing digital skills in local and developing countries, emphasizing the importance of communication and collaboration with top-tier engineers. Overall, Mercari’s commitment to sustainability, education, and inclusivity sets an inspiring example for companies seeking to make a positive impact.

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During the G7 Hiroshima Summit 2021, Japan emphasized its key focus areas in digital infrastructure and capacity building in developing countries. One of the main areas of focus is the need to bolster security and resilience in digital infrastructure. Japan recognises the importance of having a secure and robust digital infrastructure to support economic growth and development.

To ensure supply chain resilience, Japan promotes the use of open 5G architecture and vendor diversification.

In addition to infrastructure, Japan is also working to address the knowledge gap in digital skills and literacy. The government of Japan offers capacity-building programmes in the digital field, aimed at improving digital skills and literacy in developing countries.

Examples of these programmes include the ASEAN-Japan Cybersecurity Capacity Building Centre and cyber defence exercises. These initiatives are steps in the right direction towards improving digital skills and literacy, paving the way for greater digital inclusion.

Another area where Japan is actively promoting is the establishment of a 5G Open RAN architecture.

The Open RAN approach promotes supply chain resilience and transparency, as well as encourages healthy competition. The Quad leaders have even announced cooperation with Palau to establish the deployment of Open RAN. Japan plans to hold a symposium on Open RAN through the ASEAN-Japan ICT Fund, further demonstrating its commitment to this technology.

The importance of variety in capacity-building programmes tailored to the needs of different countries is also emphasised by Japan.

Each country has different requirements and needs when it comes to capacity building, and it is important to cater to those specific needs. Already, there are institutions and programmes such as APT (Asia-Pacific Telecommunity) and AJCCBC (ASEAN-Japan Cybersecurity Capacity Building Centre) providing capacity building.

The Ministry of Internal Affairs and Communications (MIC) has been instrumental in helping Japanese telecom companies expand their ICT solution services overseas, catering to the diverse needs of different countries.

Furthermore, Japan aims to promote its ICT companies to share solutions for cross-border payment and digital ID with developing countries.

Japanese ICT companies possess the technical abilities required to achieve secure cross-border payment and digital ID systems. The government of Japan sees the potential in using capacity-building initiatives to share these solutions and contribute to reducing inequalities and improving infrastructure in developing countries.

In conclusion, the G7 Hiroshima Summit 2021 highlighted Japan’s commitment to digital infrastructure and capacity building in developing countries.

Japan aims to bolster security and resilience in digital infrastructure, address the knowledge gap in digital skills and literacy, and support the establishment of a 5G Open RAN architecture. The emphasis on variety in capacity-building programmes, as well as the promotion of Japanese ICT companies to share solutions for cross-border payment and digital ID, further demonstrates Japan’s dedication to fostering inclusive and sustainable development.

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The Japan International Cooperation Agency (JICA) is playing a significant role in capacity and infrastructure building across the ASEAN and Pacific regions. Last fiscal year, they had funding of approximately 1.2 to 1.3 trillion dollars for projects, demonstrating their commitment to supporting development initiatives in these regions.

Moreover, JICA’s efforts go beyond financial support. They have trained 13,217 individuals and employed 9,163 experts and volunteers from around the world, showcasing their dedication to capacity building and knowledge transfer.

JICA is also intensifying efforts to integrate digital components into existing infrastructure.

They aim to enhance cybersecurity measures and have partnered with the ASEAN-Japan Cybersecurity Capacity Building Centre (AJCCBC) to develop and strengthen cybersecurity capabilities across the ASEAN region, ensuring a secure digital environment.

Additionally, JICA is actively working to expand technological connectivity.

They plan to lay fiber lines for the New Urban Information Infrastructure (NUI) project, a digital initiative to enhance connectivity in urban areas. To achieve this, JICA is collaborating with partners such as the United States and Australia, highlighting the importance of global cooperation in driving technological advancements and promoting connectivity.

Partnerships with private sectors are considered crucial in achieving technological solutions and supporting connections between companies.

JICA recognizes that private sectors have valuable technological solutions and expertise that can contribute greatly to development projects. Collaboration between Inazians and Japanese companies is particularly emphasized to facilitate knowledge-sharing and innovative solutions.

Furthermore, the importance of having appropriate policies in place to support and foster innovation and ecosystem development is highlighted.

The speakers argue that countries need a comprehensive approach that encompasses not only technology skills but also policy areas and digital skills to connect technology skills with the private sector and ensure a conducive environment for growth and progress.

In conclusion, JICA is playing a crucial role in capacity and infrastructure building across the ASEAN and Pacific regions.

Their substantial funding, extensive training programs, and efforts to integrate digital components into infrastructure exemplify their commitment to sustainable development. Additionally, their emphasis on partnerships with the private sector and the need for effective policies underscores the importance of collaboration and a holistic approach to foster innovation and drive ecosystem development.

Ultimately, JICA’s initiatives are contributing to the advancement of the regions and paving the way for a prosperous future.