The Information, Technology, and Communication (ITC) sector is predicted to continue to increase from 2018 to 2020, along with the expanding market potential of the sector. VISI predicts that in 2020, ITC is predicted to increase compared to 2019, reaching 0.65 points from 8.5167 to 9.1622. This growth is in line with the increasing potential of the ICT business market in Indonesia.
The increasing need for Artificial Intelligent (AI) and Big Data in the business field is one factor. Despite the pros and cons related to AI, its development in Indonesia is still in the early stages of development and still far from the development of true AI.
In 2020 the government will increase the value of the Draft State Budget to IDR 1,670 trillion from IDR 1,527.2 Trillion. Although the focus of spending in 2020 is focused on 4 sectors namely education, health, social protection, and infrastructure, but as an initial development of AI systems, ITC will certainly have an important role in developing these 4 sectors.
Currently, updating the company’s system is one of the factors that influence the success of a business. The more sophisticated the company’s technology, the easier the transaction process and faster time of its request process. This has an attraction that has become a trend in the Indonesian market nowadays.
E-Business is also one of the factors that influence the development of business in the ICT sector. In the last 3 years, the trend of e-commerce business in Indonesia continues to increase and more and more foreign investors are investing in the business. The main reason is that Indonesia is a country with a dense population, and most of the population already has access to use the internet. ITC, as the main capital in the business, is increasingly rising and utilizing these opportunities by expanding the function of its products and services.
It is also projected that Indonesia’s E-Market is close to China and India, with an estimated USD 130 billion in 2020. With its large population making Indonesia the highest social media user in the world. Therefore, it is not surprising that many E-Commerce start-ups and investors have sprung up to reap profits in Indonesia.
Not only that, there are still several other factors that also contribute to the development of the ICT sector, such as Fintech, Healthtech, Edutech, Cloud Computing, and others. In 2020, Indonesia plans to launch a satellite called the UNISAT which is expected to support the needs of information technology in the transportation sector. No wonder that in 2020, the transportation sector will further develop, and many will implement AI systems and contribute to increasing growth in the ICT sector.
Based on the reason above and the trend of the ITC sector in several years, in the first quarter of 2020 ITC sector was predicted to increase by 0.20 points compared to the same period in 2019. From 9.06 in Q1 2019 became 9.26 in Q1 2020
However, along with the development of the business sector, the government must immediately make regulations related to e-commerce business in Indonesia so that there is no misuse of business that can be unsettling for the public, which destroys the business potential.
Based on available information, in early 2020, the government will establish a Government Regulation (PP) E-commerce that contains several regulations related to Foreign E-Commerce Player’s Tax Provisions, Provisions on e-Commerce Business Players, and Consumer Protection Rules. The e-commerce players consider that the regulations to be ratified are rather rushed and without discussion with E-commerce entrepreneurs. So, it is considered a wild ball that will burden its businessmen and reduce the potential of its business and investment.