The Irreversible Trend: Part 1
As the world sets foot into the third year of the COVID-19 pandemic, market uncertainty continues to cast the economic adrift. The new COVID-19 variants significantly hinder the already-asymmetrical recovery amongst countries as a consequence of different inflation rates, global tapering, and stocks slump. Whilst some countries have managed to weather the outbreak, several others still struggle to control it. In Indonesia, aside from the fiscal and monetary policies implemented to advance the COVID-19 recovery, building infrastructure connectivity remains the focus of the country's National Medium Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional). Earlier this year, the government introduced its "Industry 4.0" initiative, which seeks to accelerate the use of advanced technologies to broaden and grow Indonesia's manufacturing capabilities and output. Another focus of the government is to maximizing the structural reform through continuing development of dedicated industrial estates (Special Economic Zones) as part of its efforts to attract foreign companies to relocate their operations in Indonesia. These measures greatly mirror the capital market that has performed better than expected, even reaching an all-time high in November 2021. Although it might not resonate with the current state of the economy yet, it is surely catching up.
The COVID-19 pandemic may also be viewed as a game-changer for the global digital economy, driving the market to adapt to new technology far sooner than anticipated. According to the report "Roaring 20s: The SEA Digital Decade," roughly 21 million new digital consumers entered Indonesia from the start of the pandemic in 2020 until the first half of 2021. Numerous companies have implemented the use of new technology to streamline their business processes and create new p