Enhancing the digital infrastructure for all | IGF 2023 Open Forum #135

Dian

During Indonesia’s presidency in the Digital Economy Working Group (DWG) 2023, they placed a strong emphasis on the importance of digital skills. As part of their efforts, they launched three output documents aimed at improving digital skills and digital literacy. These documents include the Compendium of Framework of Practices and Policies on Advanced Digital Skills and Digital Literacy, the G20 Toolkit for Measuring Digital Skills and Digital Literacy, and a collection of policies and recommendations to improve meaningful participation of people in vulnerable situations in the digital economy. These initiatives demonstrate Indonesia’s commitment to equipping its citizens with the necessary skills to thrive in the digital era.

Indonesia also actively participates in the BUD Forum, led by the Ministry of Communication and Informatics. They carry out priority deliverables in this forum, further highlighting their commitment to the development of the digital economy.

One of the key priorities of Indonesia’s presidency in the DWG 2023 is to bridge the digital divide. By prioritising digital skills, Indonesia aims to bring economic prosperity and social inclusion on a global scale. They recognise that the digital divide hinders progress and are committed to ensuring that all individuals have access to the necessary resources and opportunities to thrive in the digital era.

Furthermore, Indonesia places great importance on developing a robust digital infrastructure. They understand that reliable and high-speed internet is the backbone of digital information and plays a crucial role in supporting economic growth and development. As such, Indonesia actively engages with international fora, including ASEAN and ITU, and seeks support from multinational entities to build and maintain a robust digital infrastructure.

In addition to these priorities, Indonesia also focuses on promoting e-governance and the digitalisation of government services. By involving the public sector in these efforts, they aim to streamline administrative processes, enhance transparency, and make it easier for citizens to access essential services.

Indonesia also recognises the importance of cybersecurity and data protection in the digital age. They collaborate with both the public sector and international organisations to establish data protection laws and enhance cybersecurity measures. This reflects their commitment to create a secure and trustworthy digital environment.

Another area of focus for Indonesia is digital education. They understand that digital skills are crucial for preparing the workforce of tomorrow. To facilitate this, they actively engage in public-private partnerships to develop and implement digital education programmes that train individuals in necessary digital skills.

Lastly, Indonesia emphasises the importance of inclusivity and cultural diversity in the digital space. Being a country with diverse cultural entities, Indonesia recognises the need for content in local languages and subsidising access to digital services. They strive to ensure that everyone, regardless of their background, has equal access to the benefits of the digital world.

In conclusion, Indonesia, under its presidency in the DWG 2023, is committed to advancing the digital economy by prioritising digital skills, bridging the digital divide, developing reliable digital infrastructure, promoting e-governance and cybersecurity, providing digital education, and fostering inclusivity and cultural diversity. These efforts demonstrate Indonesia’s dedication to harnessing the power of digital transformation for economic growth and social development.

Audience

During the forum, the individual made multiple requests to leave, expressing gratitude several times by saying “thank you.” The person also indicated their intention to say goodbye multiple times, using the phrase “bye-bye.” This suggests a polite and appreciative attitude toward the audience and participants. Although the reasons for wanting to leave were not explicitly stated, it can be inferred that the individual has completed their participation or has other commitments to attend to. Overall, their repeated expressions of gratitude and farewell indicate a respectful and appreciative departure from the forum. The individual’s gestures and words demonstrated a gracious and courteous exit, leaving a positive impression on the audience and participants.

Mr. Amano

Mercari, a popular peer-to-peer trading platform, is actively promoting a circular economy and expanding its global reach. With a customer base of over 20 million and gross merchandise volume (GMV) reaching 100 billion yen last year, Mercari is dedicated to reducing the disposal of items and encouraging sustainable consumption practices. Their initiatives include equipping high school students with digital skills and digital marketing skills through project-based learning programs. They collaborate with local educational institutions in places such as Wakayama and Kyoto, providing opportunities for students to sell local products on their platform. In addition, Mercari supports IT education and aims to increase the number of female engineers by donating to Kamiyama Tech College and conducting workshops for engineers and local communities. They also recognize the importance of hands-on interaction and dispatch specialist engineers to local schools and companies, facilitating real-life learning experiences. Furthermore, Mercari understands the global significance of implementing digital skills in local and developing countries, emphasizing the importance of communication and collaboration with top-tier engineers. Overall, Mercari’s commitment to sustainability, education, and inclusivity sets an inspiring example for companies seeking to make a positive impact.

Yamanaka San

The Japan International Cooperation Agency (JICA) is playing a significant role in capacity and infrastructure building across the ASEAN and Pacific regions. Last fiscal year, they had funding of approximately 1.2 to 1.3 trillion dollars for projects, demonstrating their commitment to supporting development initiatives in these regions. Moreover, JICA’s efforts go beyond financial support. They have trained 13,217 individuals and employed 9,163 experts and volunteers from around the world, showcasing their dedication to capacity building and knowledge transfer.

JICA is also intensifying efforts to integrate digital components into existing infrastructure. They aim to enhance cybersecurity measures and have partnered with the ASEAN-Japan Cybersecurity Capacity Building Centre (AJCCBC) to develop and strengthen cybersecurity capabilities across the ASEAN region, ensuring a secure digital environment.

Additionally, JICA is actively working to expand technological connectivity. They plan to lay fiber lines for the New Urban Information Infrastructure (NUI) project, a digital initiative to enhance connectivity in urban areas. To achieve this, JICA is collaborating with partners such as the United States and Australia, highlighting the importance of global cooperation in driving technological advancements and promoting connectivity.

Partnerships with private sectors are considered crucial in achieving technological solutions and supporting connections between companies. JICA recognizes that private sectors have valuable technological solutions and expertise that can contribute greatly to development projects. Collaboration between Inazians and Japanese companies is particularly emphasized to facilitate knowledge-sharing and innovative solutions.

Furthermore, the importance of having appropriate policies in place to support and foster innovation and ecosystem development is highlighted. The speakers argue that countries need a comprehensive approach that encompasses not only technology skills but also policy areas and digital skills to connect technology skills with the private sector and ensure a conducive environment for growth and progress.

In conclusion, JICA is playing a crucial role in capacity and infrastructure building across the ASEAN and Pacific regions. Their substantial funding, extensive training programs, and efforts to integrate digital components into infrastructure exemplify their commitment to sustainable development. Additionally, their emphasis on partnerships with the private sector and the need for effective policies underscores the importance of collaboration and a holistic approach to foster innovation and drive ecosystem development. Ultimately, JICA’s initiatives are contributing to the advancement of the regions and paving the way for a prosperous future.

Dr. Ran

The Association of Southeast Asian Nations (ASEAN) is recognizing the potential of a single digital economy, as it is currently the fifth largest economy in the world, with a market worth $3,000 billion USD. The region has a significant consumer base of 300 million people, which has been further amplified by the pandemic’s acceleration of the digital transformation in ASEAN.

Despite this positive development, there are challenges in the journey of digital transformation in the region. One major challenge is the varying levels of digital readiness among ASEAN countries. Some countries are better prepared for the digital transformation than others, which creates a gap in terms of embracing the digital economy. Another challenge is the issue of cybersecurity, with a significant divide between the lowest and highest performing nations in terms of cybersecurity measures. This poses a risk to the stability and security of the digital ecosystem in the region. Additionally, emerging technologies like AI and Cloud Computing are having an impact on the labor market, further complicating the challenges of digital transformation.

Another pressing concern in the ASEAN region is the urgency for skill development and training. It is estimated that 10-20% of jobs will be displaced by digital technology in the coming years. However, there is a shortage of digitally skilled professionals in ASEAN, resulting in a need for about 50 million additional digital professionals. This highlights the need for comprehensive measures to bridge the digital divide and upgrade skills in the region.

ASEAN is taking proactive steps to address these challenges. Various ASEAN bodies, such as SME, Science Technology, and Education, are setting up facilities to enhance digital knowledge and skills. The aim is to make currently unskilled workers relevant and train higher-level professionals to meet the demands of the digital economy.

Inclusivity in the digital economy is a priority for ASEAN. Efforts are being made to equip micro, small, and medium-sized enterprises (SMEs) with digital knowledge through initiatives like the ASEAN SME Academy. This will enable these enterprises to participate more actively in the digital economy and benefit from it.

Additionally, ASEAN is actively working on improving the logistics system and developing a digital payment system across the region. An agreement has already been secured to enhance cross-border e-commerce and digital payment using QR codes. These efforts aim to promote seamless integration and efficiency in cross-border transactions.

Addressing digital security is also a priority for ASEAN. Plans are underway to develop a system for digital ID or digital business ID, with the goal of creating an interoperable platform for businesses and consumers. This will enhance digital security and facilitate trustworthy digital transactions in the region.

In conclusion, ASEAN recognizes the potential of a single digital economy and is actively pursuing measures to accelerate the digital transformation. However, challenges such as varying levels of digital readiness, cybersecurity, and job displacement persist. The urgency for skill development and training in ASEAN is apparent, and initiatives to bridge the digital divide and upgrade skills are being implemented. Inclusivity in the digital economy, improvement of logistics and digital payment systems, and the development of digital ID systems are also key areas of focus. By addressing these challenges and embracing digital advancements, ASEAN aims to thrive in the digital age.

Daisuke Hayashi

The digital economy has great potential and is experiencing faster growth compared to the traditional economy. A 10% increase in internet adoption leads to a 0.5 to 1.2% growth in income, while a 1% increase in adoption of digital technology is associated with a labor productivity growth of 1 to 2.0%. The size of the digital economy is rapidly increasing and now accounts for between 5 to 7% of GDP. However, there is a disparity in company growth across regions, with GAFA and Microsoft dominating the market. Companies in the East Asia and Pacific (EAP) region have experienced slower growth, possibly due to a lack of knowledge and skilled workers. To address these challenges, discussions and partnerships involving multiple stakeholders are necessary. Daisuke Hayashi advocates for a diversified approach that involves both the public and private sectors in enhancing digital skills. Efforts are being made to address the digital skills gap, particularly among the younger generation, and support the development of skilled individuals in local areas. There is a shift in focus from cybersecurity to the development of digitally skilled individuals. It is necessary to improve digital skills and foster digitalization through public-private collaboration. International exchange is also encouraged to drive innovation in the digital economy. Overall, it is essential to improve digital skills and ensure equitable growth in the digital economy.

Rika Tsunoda

During the G7 Hiroshima Summit 2021, Japan emphasized its key focus areas in digital infrastructure and capacity building in developing countries. One of the main areas of focus is the need to bolster security and resilience in digital infrastructure. Japan recognises the importance of having a secure and robust digital infrastructure to support economic growth and development. To ensure supply chain resilience, Japan promotes the use of open 5G architecture and vendor diversification.

In addition to infrastructure, Japan is also working to address the knowledge gap in digital skills and literacy. The government of Japan offers capacity-building programmes in the digital field, aimed at improving digital skills and literacy in developing countries. Examples of these programmes include the ASEAN-Japan Cybersecurity Capacity Building Centre and cyber defence exercises. These initiatives are steps in the right direction towards improving digital skills and literacy, paving the way for greater digital inclusion.

Another area where Japan is actively promoting is the establishment of a 5G Open RAN architecture. The Open RAN approach promotes supply chain resilience and transparency, as well as encourages healthy competition. The Quad leaders have even announced cooperation with Palau to establish the deployment of Open RAN. Japan plans to hold a symposium on Open RAN through the ASEAN-Japan ICT Fund, further demonstrating its commitment to this technology.

The importance of variety in capacity-building programmes tailored to the needs of different countries is also emphasised by Japan. Each country has different requirements and needs when it comes to capacity building, and it is important to cater to those specific needs. Already, there are institutions and programmes such as APT (Asia-Pacific Telecommunity) and AJCCBC (ASEAN-Japan Cybersecurity Capacity Building Centre) providing capacity building. The Ministry of Internal Affairs and Communications (MIC) has been instrumental in helping Japanese telecom companies expand their ICT solution services overseas, catering to the diverse needs of different countries.

Furthermore, Japan aims to promote its ICT companies to share solutions for cross-border payment and digital ID with developing countries. Japanese ICT companies possess the technical abilities required to achieve secure cross-border payment and digital ID systems. The government of Japan sees the potential in using capacity-building initiatives to share these solutions and contribute to reducing inequalities and improving infrastructure in developing countries.

In conclusion, the G7 Hiroshima Summit 2021 highlighted Japan’s commitment to digital infrastructure and capacity building in developing countries. Japan aims to bolster security and resilience in digital infrastructure, address the knowledge gap in digital skills and literacy, and support the establishment of a 5G Open RAN architecture. The emphasis on variety in capacity-building programmes, as well as the promotion of Japanese ICT companies to share solutions for cross-border payment and digital ID, further demonstrates Japan’s dedication to fostering inclusive and sustainable development.

Daisuke Hayashi:
you you you you you you you you you you you you you you you you you you you you Thank you very much for coming to the session on enhancing the digital divide for the development of the digitalization in the region. My name is Daisuke Hayashi from the World Bank and I’m a moderator of this session and once again, thank you very much for coming. Firstly, I’d like to start with my presentation, a bit short, a brief, so that I would like to share with all of you what is the background and what we are going to discuss about. And today’s speaker is composed of five people from the government of Indonesia, ASEAN Secretariat and Japan. Those three speak online and the two tech specialists from JICA, Japan International Cooperation Agency, Mr. Yamanaka-san on your right, and from the Japanese commerce company Mercari, Mr. Amano-san will join us as well. And just to say the background of the digitalization, it’s not so very familiar with all of you, so just skip the details, but we all share that the digital economy has a lot of potentials and grows faster than the traditional economy and of course, they have generated considerable benefits, like 10% increase in internet adoption with 0.5 to 1.2% income growth, or the 1% increase in adoption of digital technology is associated with labor productivity growth of 1 to 2.0%. There are so many examples, but we can already know that kind of potentials. And also on your right side, the digital economy size is still modest, but increasing rapidly, now between 5 to 7% of GDP, and notably in the EAP areas like Indonesia, there’s a lot of increase in recent years. But at the same time, we are facing some challenges. Of course, not only the digital divide, but also the digital leaders and lack of digital leaders in the region. For example, in the United States, what we call the GAFA, plus Microsoft has a lot of dominating the market. And also the Asian Pacific region, you see that so many companies are growing, but compared to the United States, and the United States, it’s not so big. And of course, increasing the companies in the EAP region is so rapidly like, for example, the Tokopedia, Glove, or some sort of apps like the car ride sharing system or e-commerce services are growing, but it’s not so huge as Google or other giga tech companies. So I think we think that these kind of differences or lack of the growth of the companies are due to that lack of the knowledge, lack of the skilled people, or other things. So I’d like to deepen this discussion, deepen those kind of perspectives, so that how we could evolve the digital development in the region in the context of the digital skilled people. And this is a main point of the discussion, but of course, I’d be happy to elaborate other aspects as well. So I’d like to invite the ASIC, Dr. Ran, to, by, of course, introduction, and as well as the regional access, sharing the regional situation of digitalization, and what the challenges they are facing. So Ran-san, please.

Dr. Ran:
Thank you. Thank you very much. I hope that you can hear me okay.

Daisuke Hayashi:
Yes.

Dr. Ran:
Okay. All right. I very quickly to share on the screen, my presentations. First of all, I would like to thank the organizer, World Bank, and Hayashi-san for the opportunity for me and my colleague, Deanne, from the Indonesia, the chair of the ASEAN this year to update and share our perspective on how ASEAN moving forward the digital agenda. Now, first, I just want to quickly give you an overview that ASEAN is very much aware of immense potential of the single digital economy of the regions. ASEAN is now the fifth largest economy in the world with 3,000 billion US dollars, and with significant 300 million consumers across the region. Now, the pandemic given a lot of impact on the economy, but it’s actually a good accelerator for the digital transformation in ASEAN. And as you may see on the screen, there are more than 400 million people, actually 460 million people are very much connected to the internet. And over the last two years, there are more than 100 new internet users actually joined the internet setting. So having said that, ASEAN is ready to embrace the digital transformation as a new driver for growth. And as you may be aware that last year, ASEAN has launched the ASEAN Digital Economy Framework Agreement, or in short, DEFA. And it estimated that the DEFA agreement would further accelerate the digital transformation of ASEAN. And it estimated that the DEFA would contribute up to 2 trillion US dollars to the regional GDP. So the DEFA mostly shed a new light for the ASEAN Digital Economy agenda in ASEAN. And there are comprehensive nine key elements of the future ASEAN DEFA that I would like to share with you like digital trade, e-commerce, digital ID and authentication, the online and cybersecurity, the digital payment, the cost borders, data flow, the competition policy and cooperation for the emerging topic and also the talent mobility. So now, but having said that, I must want to say that the journey of the ASEAN toward the digital transformation is not without challenging. In fact, we have a lot of challenge that we need to overcome in order to really move forward the digital economy agenda. First and foremost, that ASEAN is a collective, is a collection of a country with a very different level of readiness or digital readiness and level development. And while we are sharing the same objective, we acknowledge that within and among ASEAN, some of the ASEAN member countries are actually the top performers of the digital transformation, while other countries are very much at the lowest performance in the region. And you can see on the screen that there is a quite significant gap between the lowest and the highest and the top performance within ASEAN. in terms of trade, payment, digital payment, digital ID, cybersecurity. So that actually is an inherent disadvantage that ASEAN needs to overcome in order to realize the so-called ASEAN digital economy. Now, another challenge that ASEAN needs to deal with, which is quite significant, is about cybersecurity. And the gap remains in the establishment of a coherent legal framework for cybersecurity is very large. And the level of maturity among ASEAN is still very significant. The digital divide, not only between ASEAN member countries, but between or among the players within the ASEAN digital is also very large, between micro, small and medium size, and also a big company. So as you may see on the screen, the micro and small enterprise is far below in terms of digital readiness to adopt in order to fully benefit the digital transformation of ASEAN. And also, we acknowledge that there are emerging challenges with regard to the emerging technology like AI, like cloud computing technology. In fact, it creates a lot of impact on our labor market, on the bias and fairness of the market. So we need to address it to ensure that the environment, the digital environment is truly sound and favorable to everyone. Last but not least, it’s about the digital scale. And according to the estimation that about 10 to 20% of the job will be displaced by the digital technology in the next few years. So there are about 28.1 million jobs will be displaced by the digital technology. But at the same time, we are dealing with a lot of scarcity in terms of digital talent. So as you may see on the screen, that ASEAN needs about 50 million additional digital professionals in this area. And we need to address it sooner than later. So there are two challenges that we need to overcome. First, we make those who are unskilled to be more relevant. And we also need to train a higher professional to actually empower ASEAN to really benefit the digital transformation. Now, I just want to turn to my last point, that ASEAN is aware of our challenges. We know that we need to do a lot, particularly in terms of digital skill. And across the sector body of ASEAN, like ASEAN SME, ASEAN Science Technology, ASEAN Education, we all set up a facility to ensure that we open more opportunity for those who need to equip with digital knowledge. While at the same time, we want to support the education system and the science technology in ASEAN to really make ASEAN to be more adaptive to the new environment. So thank you very much. And Aseesan, I just want to stop here and open for further questions. Thank you very much.

Daisuke Hayashi:
Thank you, Ransom. Thank you for your comprehensive explanation. And of course, now we understand what the challenges we are facing as ASEAN whole. So I’d like to now invite the Indonesia Ms. Ransom, sorry, Ms. Ransom, for sharing with us your priority. Notably, you know, Indonesia has experiencing the presidency of the G20 and ASEAN last year and this year. So would you please share with us what are your priorities and what kind of background as well?

Dian:
Yes, thank you, Mr. Hayasi. So thank you also for the opportunity to speak in this prestigious panel discussion that you convened today. And as you say that this year, Indonesia is no longer the presidency of G20, but we are part of Troika countries in the Digital Economy Working Group or DWG 2023, as well as the chair of ASEAN in 2023. At the same time, we actively contribute to the BUD Forum and our ministry, the Ministry of Communication and Informatics of the Republic of Indonesia, or MCI-RI, involved and carried on priority deliverables in BUD Forum. As Troika in DWG, Indonesia supports the three priorities of DWG 2023 proposed by India’s presidency. They are digital infrastructure for digital inclusion and innovation, building safety, security, resilience, and trust in digital economy, and digital skilling for building a global future-ready workforce. The last priority, the digital skilling for building a global future-ready workforce aims to enhance the G20 members’ collective efforts to promote digital skill and digital literacy with a focus on addressing digital divide and skill gaps, including gender skill gaps, true skilling, reskilling, and upskilling, and other capacity-building initiatives. This digital skill initiative is a continuous effort made by China in 2016, Germany in 2017, Argentina in 2018, and Indonesia’s G20 presidencies in 2022. During Indonesia’s DWG presidency 2022, we emphasized on digital skills and launched three output documents. We launched Compendium of Framework of Practices and Policies on Advanced Digital Skills and Digital Literacy, and then G20 Toolkit for Measuring Digital Skills and Digital Literacy, together with a collection of policies and recommendations to improve meaningful participation of people in vulnerable situations in the digital economy. Moreover, as the chair of ASEAN 2023 MCI Indonesia overseeing the digital sector under ASEAN Economic Community Pillar and information sector under ASEAN Sociocultural Community Pillar, therefore, we propose three priority deliverables. Under the digital sector, we propose two priority deliverables. The first one is regulatory pilot space to facilitate cross-border digital data flow self-driving car in ASEAN, or we call it ASEAN RPS. The ASEAN RPS is supported by government of Japan as one of the dialogue partner of ASEAN. And the second one is ASEAN Framework on Logistics for Digital Economy Supply Chain Indonesia Presidency during G20, especially in DWG in 2023 tool. And during the ASEAN chairmanship in 2023, we demonstrated a strong commitment to advancing digital skill and technological development in the region. And under its leadership, Indonesia aim to harness the power of digital transformation as a driver of economic growth and social development. The Indonesia government implemented various initiatives to foster digital literacy, innovation, and entrepreneurship. We actively promoted digital skill development to educational program, vocational training, and partnership with the public and private sector. And then by prioritizing the digital skill, Indonesia sought to bridge the digital divide and ensure that its people as well as the broader Southeast ASEAN community are prepared to thrive in the digital era, contributing to economic prosperity and social inclusion on a global scale. Thank you, Mr. Ayase.

Daisuke Hayashi:
Thank you very much, Rian-san, for your very continuous work from the G20 to ASEAN and to concretize and of course deliver some more projects in the region. So now let’s go and move to a bit different perspective because I recognize that this year is Japan and ASEAN has 50 years friendship year and I think that Japan has been contributed to the region as well. So I’d like to invite Mr. Tsunoda from the Ministry of Communications of Japan for sharing with us some of your priorities and your contribution to the region. Thank you.

Rika Tsunoda:
First of all, thank you for the question. I’m Rika Tsunoda from the Ministry of Internal Affairs and Communication. I work mostly on promoting digital infrastructure globally in International Digital Infrastructure Promotion Division. So this session is very relevant. So I’m so delighted to join this session. And as Hayashi-san mentioned, Japan hosted the G7 this year as a presidency. And I’d like to today share the priority of digital development with developing countries. And I think the first priority of Japan is to ensure economic resilience and economic security, including in developing countries in Indo-Pacific region. So to that end, promoting to deploy open and resilient digital infrastructure in developing countries is indispensable. So first, I’d like to reflect on the G7 in Hiroshima Summit, which Japan hosted as a presidency. And I’d like to focus on free and open Indo-Pacific and economic resilience and economic security part. And in Hiroshima Summit, G7 member states reiterated the importance of a free and open Indo-Pacific and underscored its commitment to strengthen coordination with regional partners, including ASEAN and its member states, and also reaffirmed the partnership with Pacific Island countries. And when we look at G7 leaders’ statement on economic resilience and economic security in building resilient critical infrastructure part, it emphasized the importance of cooperating on enhancing security and resiliency in critical infrastructure in digital domain. And also we welcome the supplier diversification efforts on 5G open RAN architecture. So from that point, the Japanese government has been promoting open 5G architecture and vendor diversification in radio access network through multiple approaches, including intergovernmental dialogue and government and industry collaboration, including capacity building. So open RAN is a radio access network that encouraged multiple vendors to share 5G networks through open interface. And as you know, currently 5G serves as a basic infrastructure for our social and economic activities. So 5G should be developed in secure, open, and robust ways through competition by multiple vendors. And 5G open RAN architecture have some benefits like ensuring supply chain resilience by making telecom operators procurement more flexible and helping increase network transparency and also promoting competition of base station market. So with regard to digital development with developing countries in 5G open RAN, in Quad leaders’ meeting this year, that Quad leaders’ statement announced cooperation with Palau, one of the Pacific Island countries, to establish deployment of open RAN so that regional countries are not left behind as telecommunication markets. And also there are government industry engagement cases to enhance knowledge of 5G open RAN. For example, USAID launched Asia Open RAN Academy in Philippines, which is the human resource development program targeting in the Pacific region to enhance knowledge of open RAN. And we call it AURA, and AURA has partnership with government, business, and civil society, including Japanese telecom companies. And so the MOIC is also willing to cooperate with AURA, with USAID. And next example is that this year marks 50th year of ASEAN-Japan friendship and cooperation, and Japan will be holding a symposium on open RAN on November 1st and 2nd by using the ASEAN-Japan ICT Fund, which was established by Japanese contributions. In the symposium, we are going to hold panels to share private companies’ open RAN promotion efforts and digitalization by 5G networks. And also, second priority is that I’d like to highlight that filling the knowledge gap in digital skills and digital literacy as well as developing network is also a high priority. And because internet is borderless, so one country is having high technologies, knowledge isn’t enough to achieve digital inclusion in the free and open in the Pacific. And to fill the knowledge gap, the government of Japan has been enhancing capacities in digital field, not only 5G area, as I mentioned, but also in other telecom areas. So I’d like to share the Japanese government activities. I’d like to quickly share my slide. Here we go. I hope you see my slide as well. So this is the capacity building programs to API. And the fund provides extroversial contribution to API to support ICT training and international collaborative research and private project. And ICT training programs are targeted for officials from APT member states and provides lectures by experts and have discussions on broadband and cybersecurity. And also, there are official visits to ICT companies. For example, in 2022, the Japan Telecommunications Engineering and Concerting Service, JTEC, provided a training program in FIZI for monitoring natural disasters and climate change by wireless network. And also, there are international collaborative researches and projects, including internet quality assurance and security, and also development of an app. And in terms of cybersecurity, Japanese NICT, National Cybersecurity Training Center, develops training programs to deal with cyber attacks, such as cyber defense exercise. And the government, the Japanese government has been working on human resource development in cybersecurity field in cooperation with private operators in Asia-Pacific region. For example, this is ASEAN-Japan Cybersecurity Capacity Building Center, and we call it AJCCBC. And this, it was established based on the agreement of seven tiers ASEAN and Japan telecommunications and information technology ministers meeting in 2017, and it started its operation in Bangkok in September 2018. AJCCBC has helped uplift cybersecurity capabilities in ASEAN region. So the main activity includes conducting multiple cybersecurity exercises with private sectors, including CIDR, cyber defense exercise recurrence, and also digital forensic exercise and malware analysis exercise. And also, the AJCCBC holds annual competition of cyber tech called ASEAN Youth Cybersecurity Technical Challenge, we call it Cyber SEAGAME, to promote the ability of young engineers and students selected from ASEAN member states. And as of April 2023, AJCCBC holds approximately 1,200 participants in total and contribute to improving cybersecurity capabilities in the Asia-Pacific region. So I’ll stop here, and thank you for listening.

Daisuke Hayashi:
Hi, Tono-san. Thank you very much for your explanation. Very, very fruitful and, of course, comprehensive in terms of Japanese contribution. And now, I’d like to invite Jaica’s Yamanaka-san to ask you about some your contribution, because Jaica has been contributing a lot, not only supporting the infrastructure building, but also the capacity building as well. So I’d like to ask you what you brought to the region, and also, I think you have a lot of lessons learned from your experiences, so in terms of the digital scaling up project. So I’d like to ask you for these questions.

Yamanaka San:
Thank you so much, Hayashi-san, and thank you so much for World Bank to organize this session. It’s very, very interesting for us as well, because ASEAN, or Asia-Pacific region, is actually a priority country for us as well. In terms of actually, just before I go, I think just to say who we are, I think it’s very important to talk about. We are a bilateral organization, so donor organizations from Japan, Japanese government. We currently, last fiscal year, we had about 1,700 ongoing projects, with one point. It’s very difficult to say because Japanese yen is weakening, but fiscal year in 2022, we had about 1.2 trillion, 1.3 trillion dollars of funding for the projects. And then last year, we actually had 13,217 actually trainees actually trained. So in that respect, as Hayashi-san mentioned, we’re doing a lot in terms of capacity building areas as well. And we also have like 9,163 experts and JICA volunteers fielded all over the world. So in that also respect that we actually are working in more than 150 countries, and ASEAN, and as well as Asia-Pacific regions. Pacific region is also the region where we work very closely. So in terms of actually infrastructure development, we have been doing quite a lot in the past. But currently, in the digital technology per se, we are not really doing a lot in the Asia-Pacific regions. Rather, we actually use it utilizing the infrastructure that we have contributed to support, and then trying to actually have the digital components into it. Except maybe we are doing projects such as like geospatial electrical reference points that we’re doing this project in Thailand. That’s a very important point where it’s going to actually help, for example, mobile-based services. Because reference point is very important for the mobility service to use, such as like automated cars and so on, or even like automated combines where they can actually do the fieldwork automatically. So we’re doing a lot of POCs based on these reference points that we’re helping them. Apart from that, we have supported quite many actual infrastructure development in like water, roads, and other areas, and where we see a lot of actually digital technology needs. So we’re actually trying to incorporate a lot of digital technologies, as well as incorporating how can you use the data to support these initiatives as well. So that’s what we’re doing. And then the previous panels, actually, we have mentioned quite a lot in terms of cyber capacity buildings. We actually, and then I think Director Tsunoda was mentioning about AJCCBC, in the Asia-Japan Cyber Security Capacity Building Centers. We are actually utilizing centers, cooperating with the centers to provide different actually capacity building initiatives in ASEAN regions. And then we are trying to actually expand that centers to be a center of excellence on creating the cybersecurity human resources. So that is something that we’re doing very closely, as well as other sort of technical assistance projects or initiatives in ASEAN, specifically in ASEAN regions, in terms of cyber securities. If you don’t stop me, I’m going to continue. So in terms of actually a significant, for example, Pacific Island initiatives, we are currently in talks with our partners like United States and Australia to actually have fiber lines actually to be built to the NUI. It’s another sort of alternative route, routings for the critical sort of fiber backbone. So that’s what we are doing. So in short, not short, I guess, we have been doing a lot in terms of capacity buildings right now, specifically utilizing a lot of support that we have done in the infrastructures in ASEAN

Daisuke Hayashi:
regions. Okay. Thank you. Thank you very much for sharing your experiences. And now I’d like to invite Mr. Amano from the Mercari company to share with different perspectives of the digital skills. And because I think that kind of in Japan and also the ASEAN’s contribution is not mainly, but principally on the kind of public sector’s point of view. So I think not only the public sector, but also private sectors, the scaling up is so important to be innovative in the region or kind of globally speaking. So I’d like to ask you, Amano-san, to share your experiences and how you contributed to the kind of, I think Mercari has a lot of experience to support the scaling up to digital skilled people in the local areas in Japan. So I’d like to ask you about that.

Mr. Amano:
Thank you. Just thank Hayashi-san for the invitation to this invaluable opportunity and the other participants for the fruitful discussion and the information sharing. I’m from the private sector. I mean, I’m working for Mercari Inc. We, Mercari, provide the smartphone application named Mercari, the same to company name, which is a peer-to-peer trade platform of the second-hand items and handmade items. By reducing the disposal of items by individual trades, we aim to accelerate the circular economy into the society with our apps. Now, we, Mercari, have broadened our business, not only Japan, toward the U.S., and ready to promote the further expansion in the world. In Japan, we have more than 20 million customers, reaching 100 billion yen in the GMV last year. I mean, growth market value. Now, we, Mercari, support the local students by giving a project-based learning program and donation to a local technological college, Kamiyama Kousen, using our Mercari app. Through our PBR program, high school students sell local products on our Mercari site, which is very difficult for undigitized local companies or traditional industry. We had a program in Wakayama, Kyoto, and so on. There, we teach digital skills, as well as digital marketing skills, including data analysis to the local students. And based on needs, they sell the local food and traditional products in Kyoto in the real easy business. They are expected to acquire useful digital knowledge and experience in the real situation and the ability to survive and commerce in the difficult era. On the other hand, the Kamiyama Tech College is an educational institution which gives IT education utilizing regional features, such as agriculture and so on. Mercari gives the support in the form of donation and cooperation agreements. In particular, as the majority of Japanese engineers are male, we aim to increase the number of female engineers in the school. And in that, we give the workshop for engineers and local people in the Kamiyama Kousen. And in this way, for the growth of engineers in the countryside, it is very useful to utilize the local resources, which facilitates the students utilize what they learned in the school in the real situation. But the lesson that we learned from the kind of educational activities is a lack of human resources, which can give technological and real experience in the local area. It is quite difficult. I mean that through internet, you can learn digital skills and how to use data analysis on YouTube or etc. But the most important feature for younger generation is the kind of situations or kind of communication with real people. So by dispatching specialist engineers from Mercari to kind of local schools and local companies, we try to kind of not educate but deepen the understanding of digital skills in the region.

Daisuke Hayashi:
Thank you. Thank you very much, Amano-san, for your sharing your very different experiences that we had and a kind of public sector’s point of view. And I think, you know, from the Yamanaka-san’s point, the indication and Amano-san’s indication that, you know, that we are focusing mainly, we have been focused on mainly on the cyber security, you know, capacity building, and of course Japan supported for a long time for this cyber security matters. But at the same time, we are not ignoring but, you know, we don’t know how, what to do with kind of more digital skilled people to be innovative, right? And cyber security is a point of more, you know, protective way from the attack, cyber attacks or something like that. But I think the digital skill, you know, creation of the digital skilled people is a more positive, to me should be more positive way to do that. So, I think, you know, from the Lan-san’s presentation that he, I think Lan-san, you made a presentation on, you know, some sort of, you know, the sectors that you are going to do or kind of ASEAN is now focusing on. So, would you please share with your experience a little bit more? What is the sectors do you think that most important or kind of more important to be skilled up? And also, how to, what is the best way to create the ways for the creating the people? And this is the question for you.

Dr. Ran:
Thank you very much for the opportunity. And now in ASEAN, we very much focus on the inclusive participations of the players in the digital economy. So, the small, the micro, So, the small, the micro, small and medium size, the household deserve to be equipped with sufficient digital knowledge in order for them to actively and effectively participate in the future digital economy of ASEAN. And that is our top priority for the digital era. And I’m thankful for a lot of support, including those in the private sector and in the donor, including Japan. ASEAN has established a very proactive facility. We call it ASEAN SME Academy, which is an online platform to enable everyone, especially those who are small and medium size and participate and enjoy the upskilling, reskilling program. And the second thing that we also encourage the business to visit matching so that we can encourage more small and medium size household to participate in the future or in the digital economy of ASEAN. So, that is the first part of it. The second priority that ASEAN is very much focused is we want to promote the cross-border, the cross-border e-commerce throughout the region. And that also enables a lot of good initiatives, like how to promote the e-commerce transition by having a better logistic system across the region. And the second, we need to develop the so-called digital payment system throughout the region. And last year, we have secured a good agreement among the member states of ASEAN to enhance the so-called digital payment network using the QR code. So, there are six member countries of ASEAN already a part of that network. And we want to do more so that the banking sector, the banking sector can actually collaborate with each other to enable a cross-border digital payment. And we are going to develop a new system where a new system for the digital ID or digital business ID to enable the interoperable platform for business and consumer who actually can confidently participate in a digital environment of ASEAN. Now, on top of that, I believe that ASEAN has a lot of things to do in order to train our people and to train unskilled worker to become more skilled in the digital environment. And then a lot of things we need to do, and we are happy to work closely with our donor, a partner, World Bank, Japan, and then in order to address the issue or the challenge in the digital scale in the years to come. So for that, I stop here.

Daisuke Hayashi:
Thank you very much. I thank you, Lancel, for your thoughts and very, very comprehensive thoughts. Yes, I think the more and more the digitalization expanding that kind of more and more cross-sectoral approach is very important, like a banking system, payment system, all the systems are to be composed of the many aspects, not only cybersecurity, but also the how to involve the banking sectors and also the taxation, et cetera, et cetera. So this is very important that the many actors or should be involved for creating the one system, which means that the many aspects of the knowledge should be integrated to create one or two systems. So I think this kind of the integration of the knowledge is key for the foundation of the next years, the innovation, digital innovation. So let’s go forward to the sector, the further for the futures, perspectives, and I’d like to invite Dian-san to share with us what is the role expected to the public sector. I mean, the ASEAN’s view or the, of course, not only the regional organization, but also like the World Bank or other international or the multinational entities can do for deepen this kind of knowledge sharing system.

Dian:
Okay, thank you, Mr. Hayasi for the question. So I would like to address it in the role that Indonesia expect from the public sector and other multinational entities. Dian-san, I would like to focus only on the digital and information sector that’s because that’s my area scope of work. So I will focus to answer your question on that area. In the age where digital information and technology are transforming societies, economies, and government, Indonesia, like many other nation, has high expectation for collaboration and support in this reality, in this new reality for the development of technology and its rapid growth. So Indonesia with its growing population and emerging economy is believed to harness the potential of digital and information sector for the betterment of its society. However, to fully realize the opportunities and mitigate the challenges, the country looks to the public sector and multinational entities for cooperation and collaboration. Of course, we are a member of many international organizations such as International Telecommunication Union and then ASEAN, and we actively engage with ASEAN and also the other dialogues partners, which also includes Japan, of course, in it. And we are actively engaging G20 and other multilateral and international fora. But first and foremost, for Indonesia, expect cooperation is in building a robust digital infrastructure. The reliable and high-speed internet connectivity is the backbone of any digital information. I think this is a promise of digital information, digital transformation. And then for the public sector, in collaboration with multinational entities, can support Indonesia expand and improve its digital infrastructure, ensuring that even remote area have access to the internet. This is not only support economic growth, but also empower citizen with valuable information and resources. Indonesia also anticipates support in nurturing its burgeoning technology and startup ecosystem. The digital sector presents an opportunity to foster innovation, create jobs, and drive economic growth. Collaboration with international technology companies and investor can help Indonesia startups gain access to capital, mentorship, and global markets, accelerating their development and contribution to the economy. Moreover, in e-governance, Indonesia expect public sector cooperation to play a pivotal role in digitizing government services. This can streamline administrative processes, reduce bureaucracy, and enhance transparency, making it easier for citizens to access essential services. A multinational entities can also provide expertise and technology to support the digitalization of government function. Next is about data privacy and cybersecurity. Both are critical concern in the digital age. So Indonesia has several cooperation with public sector and international organization in establishing robust data protection law and cybersecurity measure. Collaboration is essential to guard against cyber threat, safeguard sensitive information, and build trust in digital ecosystem. Additionally, Indonesia expects support in the education sector to equip its citizens with digital skills and literacy. In a world driven by technology, digital education is crucial to prepare the workforce in tomorrow’s. Public-private partnership can facilitate program that train individuals in digital skill, ensuring that there are no one left behind in this fast-paced digital revolution. Inclusivity is another vital aspect of Indonesia expectation from the public sector and multinational entities. The nation seeks to bridge the digital divide, ensuring that all citizens, regardless of their location and socioeconomic status, can benefit from the digital age. This may involve subsidizing access to digital services and ensuring that the content is available in local languages. As with many sector, Indonesia expects cooperation that respects its national sovereignty and values. We are the country with a very diverse cultural entities, so we should acknowledge and preserve the digital space. In conclusion, Indonesia recognizes the transformative power of digital and information sector. The nation looks to the public sector, including its own government, as well as multinational entities, to collaborate in building a digital infrastructure, nurturing innovation, improving government services, protecting data, fostering education, promoting inclusivity, and respecting cultural diversity. We can harness the potential of digital age, which benefit to all, not only Indonesian, but also contribute to the nation and regional growth and development. Thank you, Mr. Hayase.

Daisuke Hayashi:
Okay, thank you. Thank you very much. Okay, just, okay, we have five minutes left, so just briefly asking the Japan and JICA for just from your views on the how to promote these, you know, to promote digitalization through the, you know, scaling up the digital, the digitally skilled people, right? Increase the digital skilled people. So maybe Japan, MIC first, just briefly, please.

Rika Tsunoda:
Just briefly with my comments. I think building on what Hayase-san said and Dr. Ran said, I think although there are already institutions and programs that have been providing capacity building, such as APT, Asia Pacific Territory Community, and the AJCCBC, and I believe it’s meaningful to provide variety of programs by multiple channels, by multiple organizations, including World Bank is really meaningful because each country has different needs and we should meet their needs as much as we could. And with regard to the contents of the capacity building, as Hayase-san said, I think not only in cybersecurity, but also ICT solutions and utilization services are important areas to focus on, as Amano-san shared, Merikari in this session. And the MIC has been helping Japanese telecom companies, which provides digital services to solve global issues, such as climate change and inequality and expand its ICT solution services to overseas by using its budget. And as Dr. Ran said, there that nature focus, I think our focus on the cross-border payment and digital ID, there are also the Japanese ICT companies that have such kind of techniques, technicals like cross-border payment and digital ID. So through these capacity buildings, and I think the government of Japan could share these ICT solutions to developing countries, in addition with digital infrastructure and developing countries could get to know these solutions. These are my points. Thank you.

Yamanaka San:
Thank you. And then Yamanaka-san, please. One minute, right? Yes. So thank you so much, actually. So building onto Tsunoda-san’s actually comment, I think partnership with private sectors, I think that’s gonna be critical, I think. Because they actually have the technological solutions, so they know it. So how can you actually support the connections between the companies like Inazians with the Japanese company? I think that’s also gonna be very, very critical. And in terms of content, not only in the digital skills side, but I think the policy is very important. So how can you actually have the countries actually have the right policies to support and to foster innovations and the ecosystem development as well? So in that respect, we also support the digital policies, actually skills trainings as well. So we need to actually have this double-prone approach, not only the technology skills important, but the content or the policy areas, as well as digital skills in terms of technology skills connecting with the private sectors.

Daisuke Hayashi:
Thank you. Thank you very much for your comprehensive and very conclusive comments. Just finally, I invite Amano-san from your private sector’s point of view. I mean, as Yamanaka-san mentioned, the collaboration with the private sector is so important. And becoming more and more important from the now on to the innovation. So please say some conclusional words from you.

Mr. Amano:
Well, it’s quite difficult to say conclusional words, but I hope that in order to implement digital skills to local or developing countries people, it is quite important not only educate digital skills, but also that communication with kind of top tier engineers with local people. From this viewpoint, and the promotion of movement people from the urban side to local side is very important by the government, but also lowering the barrier of the cross-border movement of engineers are quite also very, very important because including Japan, even in the developed country, we have a scarce of engineers and we also need the top tier engineer even in the urban area, but also the local area. So we hope that the government try to lowering the barrier kind of taxation or visa issuing. So for doing that, the digital skilled people will kind of disperse over the world. I think that this is quite important for implementing digital skills into the people.

Daisuke Hayashi:
Thank you. Thank you very much, Amano-san. Yeah, I think from this session, I believe that we understand what we are facing, the challenges we are facing, but at the same time, we had a lot of experiences on some sectors like cybersecurity and infrastructure technologies, et cetera, et cetera. So from now on, I think it’s very important to kind of improve or develop or foster the digitalization by creating a more innovative people, which means that a lot of skills and of course, this is very impressed by other sectors expertise and also the mixture of this culture. So I think it’s kind of private and public-private collaboration is very important. So I think it’s very important to create some sort of discussion place or the venue for exchanging knowledge or the exchange point for further scaling up the digital skills from the region to the world. And that might be bringing more exchange globally and not only the regionally or country level, but also the global exchange. And that would lead to the more further the innovation, which leads to the AI or AI innovation that we are discussing mainly in this IGF 2023. So I’m sorry, but it’s run on time. And so I’m sorry that I cannot take the question from the floors, but thank you very much for your cooperation. And I hope that, of course, from the World Bank side, I’d be happy to work with all of you, our clients to develop the digitalization in the world. And of course, with the Japanese, as well as the ASEAN and private sectors collaboration. So thank you very much for your participation. Thank you.

Dian:
Thank you, Mr. Hayashi.

Audience:
May I leave the forum? Thank you. Thank you very much. Okay. Bye-bye. Thank you. Bye-bye. Bye-bye.