The Fall of SVB and Its Impact on Digital Economic Transformation Efforts at Indonesia's Chair in ASEAN 2023

Abstract

Capitalization has forced the market to become increasingly accessible. Economic interdependence has been created and has become a principle of economics that most countries embrace. The collapse of the SVB significantly impacted the fall of American stocks, which subsequently affected the closure of banks inside and outside America. The implications of this phenomenon reflect ASEAN as an organization that seeks to create a stable and secure economy in the region. As the Chair of ASEAN 2023, Indonesia has many opportunities and challenges that can be taken from the fall of the banking industry in America while implementing a digital economy in the ASEAN region. This research uses a descriptive qualitative method and a literature review to analyze opportunities and challenges that can be used as lessons for Indonesia as the holder of the ASEAN chairmanship in 2023. Economic sustainability is a vital aspect of the survival of a country. Capitalization then forces the development of market mechanisms through economic digitalization. This transformation is driven by advanced technological developments as well. Based on the data, ASEAN is ready to carry out digital transformation, but regulators need to initiate integration to eliminate the inequality between member countries.