Nama : Fahar Firjatullah

NIM : 5551190132
Kelas : 3B
Mata Kuliah : English For Bussiness II
Jurusan / fakultas : Manajemen / Ekonomi & Bisnis

Digital Economy and Development: an ASEAN Perspective

1. Who is the speaker, please describe abouther

The speaker name is Prof. Mari Pangestu, she is an academic by training and is currently professor of international
economic at the faculty of economic and business University of Indonesia Prof. Mari Pangestu is the first female
Indonesian with Chinese descent to hold a cabinet position in Indonesia. She served as Indonesian Minister of trade
from 2004 to 2011 and was Minister of Tourism and creative economy from 2011 to 2014,Pangestu contribution not
only to Indonesian public life she’s also contributed to international public life she currently serves on the leadership
Council of the UN sustainable development solution.

2. What is her opinion about Gojek when it was established in2011

Around 2011-2012 where Gojek was just born and Gojek at the time was just an SMS application and we already
thought it was so great and we could not have predicted where Gojek would have ended up just five years later. It is
just this journey that keeps on making more question then answer and causing up to think more.

3. What can she conclude about sinar mas and gojek

From 2011-2012 where Gojek was born, Gojek right now worth nine billion dollars and they reach that valued at
nine billion and they reach that five or six year compare that to Sinar Mas which one of our traditional palm oil
companies it took seventy years to reach it million dollars. so this is old world and new world

4. What is digital economy How digitized is asean

Digital economy is economy activity that result from billions of everyday online connection among people,
businesses, Institutions, devices, and processes. in ASEAN so 15 years ago they were like close to zero internet
users in 1995,and in 2018 more than almost half of the world’s population 3.8 billion and now digitized in terms of
internet penetration.

5. She said that being connected is not enough< would you like to explain about the reason

Being connected is not enough. We have to know how to be able to have the capacity to utilize that connectivity to
get economic gain from being connected. This is about development how do you not just have people connected in
the telecommunications digital sense but how do they use that connectivity to better themselves be included be more
efficient and be more innovative it’s about development strategy and complementary policies need to be there for me
and the other people to realize that digital dividends. So that is coming out from digital connectivity.
 6.

What can she conclude about this picture

According from the what she conclude, everybody was connected to mobile phone but internet penetration has been
much lower and i will see a minute the usage mobile phone is also not yet giving them economic benefit and the
opportunity from mobile phone.

7.

Please describe about this picture

In digitization of ASEAN, Singapore is the most advanced followed by Malaysia and Brunei. And the other
countries are in the middle and Laos is at the furthest behind is the lowest and the cost of mobile connectivity has
come down
 8.

According to the picture what she said about the speed of internet?

What she said is Singapore has the fastest speed, much higher than the global average but the rest of us with
Thailand interestingly Vietnam being much more a head than Malaysia Indonesia and Philippines. The speed of
connectivity again is important because if you want to be able to deliver goods and services through the internet
speed make a lot of difference, so one of the things that is going to be in terms of telecom policy again is the speed
of the connectivity.

9.

Based on this picture, it could be divided in to two group which are developed and developing
countries, please describe about this

In developed country more people are accessing to the desktop or the laptop, in Asia including china its mainly to
the mobile phone. So that’s means mobile phone technology such as you know when 5G hits is going to make a
huge difference for countries and allowing us to leapfrog in a big way. So, that tells you that we are connected
mainly through mobile phone we are not some so great yet an internet penetration.
 10.

Please describe about Indonesia according to the picture

Although Indonesia has the biggest population on social media, it can also be economic use. Because the number
four of Indonesia is that for online sales, 60% is using social media 40% is using the e-commerce platform. So a lot
of Indonesian and in the other country use Facebook, instagram to do their e-commerce.

11. How does digital technology give us inclusion, effieciency and innovation across business,
people and government?

The digital technology give us so many opportunities to grow in every aspect like give inclusion to across
business and give innovation to across people and goverment, it helps us to grow in business, people and
goverment efficiently. The examples are business e-commerce, people with their social media, and the
goverment with the e-government

12.

According to the picture, what can we conclude about Vietnam

From the size of the internet economy in ASEAN, Vietnam is the highest percentage internet economy of GDP, and
Vietnam seems to be ahead of even the main 6 ASEAN countries. 4% of Vietnam’s GDP is coming for internet.
And the rest of us is only about 3% and the lowest 1.3% for Philippines
 13.

According to the picture, what do you think about China comparing to the ASEAN Country

From the picture, we know the China’s e-commerce more higher than ASEAN. China 20% of their retail trade is
already through e-commerce and comparing to ASEAN which is only 2%. And a lot of people think that ASEAN is
about 5-8 years behind China, it doesn’t mean we (ASEAN) can’t change because if we’re going to go in the
direction of China then there’s a lot of room to grow for e-commerce.

14. How about the growth of Financial Technology inAseaan

Financial technology in ASEAN are usually grow when they service an unmet market and unservice market. In case
of ASEAN, 50% of ASEAN still don’t have access to bank services. Which mean the e-commerce servicing those
who don’t have bank accounts and then banks are under threat, then the banks have to digitize and the governments
also have to respond.

15. What is e government, and can you explain the sample that has been impleented in indonesia

E-goverment is the use of technological communications devices, such as computers and the Internet to provide
public services to citizens and other persons in a country or region. And in Indonesia, the goverment is allow
branchless banking. It allows banks to use agent who normally the ones selling to prepaid cards in villages/remote
areas to receive payment behalf of the bank.
 16.

What can we conclude about this picture

Based on CSIS survey, in average, the highest country in ASEAN that utilizing digital communication tools is
Vietnam and Lao PDR is the lowest. Indonesia is one of the lowest for very simple level of using email and website.

17. What she said about uber in implementing innovation in technology

Uber is one of the innovations that comes from an economic platform, uber is considered as a two-sided market
because it gains value from the scale and the data that is built up on the platform, the more uber drivers the more
consumers and the more consumers the more uber drivers. uber adopting digital technology to monetize from the
data.

18. Due to her experience when someone ask to minister of communication about what is the
biggest bank in next years, and he said that Alibaba, please explain thereason

He said that alibaba can be takeover the bank, because their huge numbers of financial services. So everything
becomes much this is part of innovation that happens.
 19.

Please describe about this picture

Risk of digital technologies:

• Firstly, for our data, the goverment can have it, and if they are not accountable, they can control our data for
their sake or do things to our privacy
• Secondly, digital tech causes job losses. It's scary for us to deal with digitization that will come and replace
everything with automation and skill changes that need to be happen
• Thirdly, scale without competition. We should deal with concentration and the 'winner takes all' model that
will happen becasuse digitization

20.

What can we conclude about this picture

Based on Oxford Economics survey, in 2028, Indonesia and Vietnam will be the most affected by automation. By
losing 9.5 Milion and 7.5 Milion. Since they are dependent on agriculture sector which account 13% and 17% of the
GDP
 21. Why business must to innovate?
Businesses need to innovate and be agile because, investment in innovation will benefit from larger market
(continued importance of openness – goods, services, investment, labor and now DATA – regional integration and
addressing the old and new issues + interoprability and seamless flow + trust and Data Governance)

22.

Please describe about this picture

In digital economy ECP is a eurpoean-based think-tank they have been measuring digital restrictiveness. what you
would do in trade in goods and china is the most restrictive so china allows 100% foreign ownership but they do
other things to restrict the players to play in china the othe Indonesia Vietnam and Thailand are also relatively
restrictive a lot of that is localization of server and so on and sp forth so inn closing the issues that are on table now
are all related to data flow removing restrictiveness in data flow and but still allowing countries to have security and
privacy and also privacy that dat governance data flow with data free flow we trust this is the g20 agenda of Japan
dff chief data governance we trust what does that mean nobody really knows but it means basically if i dont trust
your privacy or security system im not going to flow the data flow so theres gonna be a huge discussion on what
does trust mean in your system in your country and data localization data service requirements will be increasingly
questioned because it is part of teh CP TPP it is actually part of your ASEAN e-commerce agreement but you still
have am exception under public policy right so what does high-security the data that you want to keep in your
country mean you have to start defining it this is some of the debates that we will be having and e-commerce
agreement under the WTO.

23. What is the difference between digitization and digitalization

Digitization is using the digitization to make something that already is a transaction like ordering a taxi youre
ordering an uber but you are digitizing it so your making it more efficient because you have these platforms . and
Digitalization is the real digital content which is a driverless car. So that’s digitalization. Digtalization we are still
thats at the stage weights digitizing everything which reduces search and infomation.
 24. What she said about corporate tax in Singapore

Singapore has the lowest corporate tax rate that’s why GOOGLE is having their office here and they
want to pay their income taxes here of course right there may be other reason but its the same issue
that GOOGLE faces in Europe why did locate in i when did the move from i think holland to island
you know they’re looking for the owest tax rate this has never been a salt issue in ASEAN you know
its kind of like should we compete with each other to lower our tax rates or not its it’s not an ASEAN
it should be as an finance ministers issue but i don’t think that’s in the works you know to say have a
uniform tax rate but how do you a more equitable tax payment if the company is domiciled in the
lowest corporate tax rate location

25. What can you conclude about this lecture series who was hosted by Lee
KuanYeuw Public School

The digital economy or the digitalization of economic activity is the disruption we are all facing today.
It amounts to billions of everyday online connections among people, businesses, institutions, devices,
data and processes. The growth of the digital economy in southeast asia has been exponential in the
last 5-8 years. The current technological disruption is unprecedented in terms of speed and
pervasiveness. It is changing production processes and products, new forms of consumption, fixed
capital formation, cross border flows and finance, and the way we live. How should ASEAN
governments and other stakeholders deal with this? On one hand, there are development dividends of
greater inclusion, efficiency and innovation, which will provide new sources pf growth, jobs and
potentially reduce inequality. On the oher, there are risks of increasing inequality if connectivity is not
combined with capacity buildng ;social tensions in managing the transition from traditional to nes
business models and job losses vs jobs created; concentration with thw winner takes all model; and
issues to do with privacy, and security risks.