TOWARDS A $7 TRILLION ECONOMY:Opportunities & Challenges

Transforming Services Sector: Empowering The Local Economy

Panelists:Adrianto Andre Djokosoetono, Director, PT Blue BirdShinto Nugroho, Chief of Policy and Government Relations, GojekAdelina Halim, Director, Deloitte Indonesia;Moderator:Eric Lee, Partner, Cognito Communications

“Technological adaptions and collaborations have prepared and assisted Indonesia’s transportation services and tourism to the point where, I believe, we are ready to reach world standards.”Adrianto Andre

November 20, 2019 | JW Marriott Mega Kuningan, JakartaThe 6th Annual Indonesia Economic Forum, 2019

The Transforming Services Sector: Empowering the Local Economy is one of the key steps towards building a $7 Trillion Economy, the main theme for the 6th Annual Indonesia Economic Forum. The panelists for this discussion were Adrianto Andre Djokosoetono, Director, PT Bluebird; Shinto Nugroho, Chief of Policy andGovernment Relations, Gojek; Adelina Halim, Director, Deloitte Indonesia; and the moderator, Eric Lee,Partner, Cognito Communications.

The panel highlighted the need to update old systems and embrace technological innovations as a tool of value for Indonesian citizens.

Mr. Adrianto Andre Djokosoetono highlighted the importance of embracing new technological innovations and Bluebird’s readiness as depicted through its journey from then and now. Initially, Bluebird’s founderstarted with two cars and with the arrival of new technology (at the time) such as radio and air-conditioning it was imperative to adopt these new systems. Today, Bluebird is one of the main transportation providers in the nation. Previous precedents strengthened the need to adopt and update vehicles with new innovations, for instance, Bluebird has launched its first all-electric vehicle fleet, and is expanding to travel and tourism services. Mr. Djokosoetono asserted that Bluebird is ready for global standards in transportation and tourism services in Indonesia.

On the other hand, Ms. Adelina Halim noted that although the development of transportation infrastructure had accelerated in the past 5 years its budget is simply insufficient for future transformations. She alsomentioned that the country’s transportation services needed to be more integrated from traditional to uni-centric service.

Ms. Shinto Nugroho applauded the improvement in the government’s attitude over the last 5-6 years in embracing technological innovations. She noted that Gojek is a technology company meeting supply and demand since 2010 and had benefitted from the government’s technology-friendly approach. Today, their open-minded attitude extends towards all sectors beyond transportation. Ms. Nugroho also agreed with Mr. Bambang Brodjonegoro’s sentiment that innovation is key within the new Cabinet members.

The panel agreed that the building blocks for the automation of vehicles still has a long way to go. New echnology will create new jobs such as traffic control, data and weather analytics, as well as the need for mechanical engineers. Ms. Halim mentioned that with the current E-commerce growth rate, the market will quadruple by 2025. If transportation infrastructure is insufficient to meet such growth, there might be a push towards drones which will create new issues such as air traffic control which will arise within the next 30 years.

Transforming Services Sector:Empowering The Local Economy

Summary