The latest Google, Temasek, and Bain & Company report, which shares updates on how digital economy sectors are tracking across six countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam,) suggests that Indonesia’s digital economy has been growing from strength to strength over the last few years, and in their latest findings, they have projected this would double in growth by 2025 to reach an estimated USD 130-billion, according to a report from Antara News.
They go on to say that Airlangga Hartarto, Coordinating Minister for Economic Affairs believes that with a positive work performance and a strong foundation, the government is confident of achieving twofold digital economy growth by 2025.
Hartarto cited reports from Google, Temasek, and Bain & Company, which have pegged the value of the national digital economy in 2022 at USD 77-billion. He went on to say that by 2030, this number could reach USD 360-billion.
Indonesia has become a digital economy player in ASEAN, generating around 40-percent of total transactions in the region. National agreement in Q1/ 2022 was the second largest after Singapore, he noted.
Antara News report that Hartarto said “that capital is so crucial. Moreover, Indonesia has a population of people in the productive age, which is included in the demographic bonus; (reflected by) 2,400-startups and a 77-percent rate of Internet penetration.”
In 2022, the national economy grew 5.31-percent, and it was estimated that this year, it will grow 5.3-percent. According to Hartarto, economic growth has been supported by the growth of the digital economy as well as other online-based services, such as food deliveries and ride-hailing.
He affirmed that the government is optimistic that the transportation and culinary sub-sectors of the digital economy would grow up to USD 39-billion by 2025, with growth capped above 20-percent. As part of the short-term plan, the government is encouraging the use of local products by easing access to credit for Micro, Small, and Medium Enterprises (MSMEs), he added.
Source: Antara News