Comparative Analysis of Broadband Internet Development for Digital Economy in China and Indonesia

Abstract

It is important to promote broadband internet development because of its role in supporting economic activities. The 10% increase in broadband penetration triggered economic growth of 1.38% in middle-income countries. In 2050, China is predicted to continue as the world economy leader, while Indonesia moves from position 8 to 4. This qualitative study uses "nation as an object of study" approach of cross-national comparison in comparing broadband internet development for digital economy in China and Indonesia in order to realize their future economy position. Four compared parameters are internet infrastructure profile, digital economy overview, broadband internet development strategy, and broadband internet regulation for digital economy. Its result is expected to give direct benefit to regulator in making further plans, strategies, and regulations of broadband internet, particularly for Indonesian government. This study finds the telecommunication infrastructures to support broadband internet and digital economy regulations in China are more mature than Indonesia. Nonetheless, Indonesia is very active in the current e-commerce development. However, Indonesia needs to expand in other digital economy activities such as fintech and provide human resources with knowledge and skills as part of an important component of the digital economy. Indonesia also needs to learn from China regarding e-commerce regulations, such as taxation and product standards. This effort requires the collaboration of government, academics, and industry players to strengthen the role of broadband internet in digital economy, in China and in Indonesia.