The project will support analysis of the implications of disruptive technologies on Indonesia. The study will cover both economy-wide impacts as well as the impacts on selected sectors and subsectors (such as manufacturing, finance, energy, e-commerce, and urban). In examining the broader implications for industrialization, employment prospects, and inequality, the analysis will model the effects on the Indonesian economy, which are likely to be transmitted and amplified through global value chains. The sector/subsector analysis will seek to answer the following questions: (i) What are the implications for economic productivity, jobs, and inequality? and (ii) What needs to be done to leverage the benefits and mitigate the risks? The study will prioritize the identification of policies and investment required for increasing Indonesia''s productive capability.
|Project Name||Supporting Technological Transformation|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Public sector management / Economic affairs management
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The project will support analysis of the implications of disruptive technologies on Indonesia. The study will cover both economy-wide impacts as well as the impacts on selected sectors and subsectors (such as manufacturing, finance, energy, e-commerce, and urban). In examining the broader implications for industrialization, employment prospects, and inequality, the analysis will model the effects on the Indonesian economy, which are likely to be transmitted and amplified through global value chains. The sector/subsector analysis will seek to answer the following questions: (i) What are the implications for economic productivity, jobs, and inequality? and (ii) What needs to be done to leverage the benefits and mitigate the risks? The study will prioritize the identification of policies and investment required for increasing Indonesia''s productive capability.|
|Project Rationale and Linkage to Country/Regional Strategy||
Indonesia stands at the cross roads of global technological transformation. The potential benefits of digitization for Indonesia''s economy is projected to be about $150 billion by 2025. Indonesia is among the fastest growing internet markets in the world. Indicators such as internet traffic, revenue from cloud services, and connected devices (Internet of Things) are growing rapidly. Home-grown online ride-hailing applications, such as Grab and Go-Jek, have not only created jobs, but often provide better wages and benefits, such as health insurance and access to bank accounts, compared to more traditional jobs. However, disruptive technologies may also pose important risks for Indonesia in the form of potential jobs losses in certain sectors and increase in inequality.
The government has developed "2020 Go Digital Vision", which entails Indonesia emerging as the largest digital economy in the Association of Southeast Asian Nations (ASEAN) region by the year 2020. Detailed analysis on the impact of the disruptive technologies on the Indonesian economy, both at the aggregate and the sector levels, will be imperative for supporting evidence based policies as well as the business case for public investments.
|Impact||Benefits of technology leveraged for sustainable and inclusive economic growth.|
|Description of Outcome||Better informed public policies and investment plans.|
|Progress Toward Outcome|
|Description of Project Outputs||Flagship study on the implications of disruptive technologies for Indonesia prepared.|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||The TA plans to recruit 13 person-months of international (a lead economist and international experts) and 21 person-months of national experts (through a national firm/research institute). A national firm/research institute will conduct the survey as well as macroeconomic, sector and labor market analysis. All international consultants will be recruited using individual consultant selection. The national firm/research institute will be recruited using consultants' qualification selection. The composition of expertise will be based on sectors selected/prioritized and will be responsive to the knowledge demand.|
|Procurement||All TA financed Goods shall be procured in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated PAIs/TA Staff Instructions.|
|Responsible ADB Officer||Yurendra Basnett|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Indonesia Resident Mission|
Ministry of Finance Directorate General of Budget Financing and Risk Management
Frans Seda Building
Jln. Dr. Wahidin Raya No. 1
Jakarta 10710, Indonesia
|Concept Clearance||22 Nov 2017|
|Fact Finding||13 Nov 2017 to 29 Nov 2017|
|Approval||08 Dec 2017|
|Last Review Mission||-|
|Last PDS Update||11 Dec 2017|
|Financing Plan/TA Utilization||Cumulative Disbursements|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Supporting Technological Transformation: Technical Assistance Report||Technical Assistance Reports||Dec 2017|
|Dukungan Transformasi Teknologi: Lembar Data Proyek||Translated PDS||Dec 2017|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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ADB to Support Technological Transformation in IndonesiaADB has approved $750,000 to Indonesia to provide knowledge support and technical assistance to study the impact of disruptive technologies on the Indonesia economy.
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Research and Development||Technical Assistance 9450||17 May 2018||Yayasan Centre for Strategic & Int'l Studies INO(INDONESIA)||Jalan Tanah Abang 3 No 23-27 Jakarta Pus karta 10160 Indonesia.||Ministry of Finance||Consulting Services||292,100.00||—|
None currently available.