Indonesia's Digital Economy is Predicted to Reach IDR 2,139 Trillion in 2025
5/27/2022
The digital economy in Indonesia is predicted to continue to grow in the next few years. At least that's according to the results of a study by Google , Temasek , and Bain & Company published in a report titled "e-Conomy SEA 2021".
In the report, the value of the digital economy in the country is projected to have a gross merchandise value (GMV) of US$146 billion or equivalent to Rp. 2,139 trillion by 2025.
The estimated figure represents a compound annual growth rate over four years (CAGR 2021-2025) of 20 percent.
Google and Temasek predict that Indonesia's digital economy growth will be led by the online travel sector (30 percent), online media (26 percent), transportation and food (25 percent), e-commerce (18 percent).
Double up
The potential value of Indonesia's digital economy in 2025, which is estimated to reach 146 billion US dollars, has doubled, compared to the estimated value of Indonesia's digital economy in 2021.
In the same "e-Conomy SEA 2021" report, in 2021, Indonesia's digital economy as a whole had a GMV of 70 billion US dollars or equivalent to Rp. 1.025 trillion (exchange rate of Rp. 14,655 per US dollar).
This figure reflects double-digit growth, which is 49 percent compared to the value of the digital economy in 2020.
Slightly different from the prediction for 2025, Indonesia's digital economy growth in 2021 will be driven the most by the e-commerce (52 percent).
Then, followed by the online media sector (48 percent), transportation and food (36 percent), and online travel (29 percent).
Projection can be achieved as long as...
On a recent occasion, the Government of Indonesia through the Minister of Communication and Information (Kominfo) Johnny G. Plate agreed with the projection of Indonesia's economic value which will reach 146 billion US dollars in 2025.
However, according to Johnny, this projection can be achieved, if Indonesia is able to take advantage of the digital space and avoid misuse of information technology.
Indonesia also needs to develop a digital economy in the country. The goal is to transform Indonesia's economy and accelerate economic recovery after the COVID-19 pandemic.
The development of the digital economy is also needed due to a shift in people's behavior that tends to use digital platforms in various sectors.
Not long ago, Johnny had the opportunity to have a bilateral meeting with the President of Google Asia Pacific, Scott Beaumont, while attending the World Economy Forum in Davos, Switzerland, recently.
The bilateral meeting was held to follow up the cooperation between the Indonesian government and Google on digital ecosystems to make it more beneficial for the community.
The collaborations that have been carried out include human resource development programs, the use of digital systems and the prevention of hoax news.
"By expanding the infrastructure network and strengthening human resources, the digital economy opportunities will be more beneficial," said Johnny, in an official statement received by Risdosagalavsjilong.
Become the most popular investment destination in Southeast Asia
The positive trend of the development of Indonesia's digital economy is also in line with the growth of domestic investment.
The e-Conomy SEA 2021 report from Google, Temasek , Bain & Company (2021) revealed that the investment value of Indonesia's digital economy during the first quarter (January-March) 2021 reached US$4.7 billion (around Rp. 68.7 trillion).
As compiled by Risdosagalavsjilong from the official Kominfo website, Wednesday (25/5/2022), this achievement has made Indonesia the most popular investment destination in Southeast Asia, surpassing Singapore.
The figure of IDR 68.7 trillion is the highest of Indonesia's digital economy investment value in the last four years.
In comparison, the investment value of the digital economy in the country in 2020, 2019, 2018, and 2017 respectively was US$4.4 billion, US$3.2 billion, US$3.8 billion and US$3 billion.
The report titled "e-Conomy SEA 2021" published by Google, Temasek, and Bain & Company can be read in full via the following . https://www.bain.com/globalassets/noindex/2021/e_conomy_sea_2021_report.pdf
