• Home
  • News
  • Indonesia's digital economy to dominate Southeast Asia by 2025

Indonesia's digital economy to dominate Southeast Asia by 2025

Wednesday, 28th of November 2018

Indonesia's digital economy to dominate Southeast Asia by 2025

A new study has found that Indonesia’s digital economy is poised to become the largest in Southeast Asia as its market value triples to US$100 billion by 2025 from $27 billion in 2018, promising more jobs and more consumer choices for an emerging tech-savvy generation.

The annual “e-Conomy Southeast Asia” study, conducted by American tech giant Google and Singaporean holding company Temasek, says the growth will be spurred by four key digital services, namely e-commerce, with a contribution of 53 percent, online travel (25 percent), ride-hailing services (14 percent) and online media (8 percent).

“We see that these sectors have grown big and they will continue to grow in the coming years,” said Google Indonesia managing director Randy Jusuf during a press conference on the study on Tuesday.

A proliferation of digital services, particularly in e-commerce, diversifies product and service choices available for Indonesia’s 150 million smartphone users — the largest number in the region — especially for users located in more remote areas.

Google’s report, which is available on Thinkwithgoogle.com, says the digital economy will also increase employment opportunities as the average Southeast Asian internet-based company will increase staff by 10 percent each year.

A 2018 McKinsey report supports Google’s finding as it estimates that the digital economy could produce 3.7 million new jobs in Indonesia by 2025.

In addition to employment, Google’s report says the growth of transportation-facilitated digital services such as Grab and Go-Jek, which operate in food delivery, ride-sharing and logistics may triple “partner” jobs to 12 million region-wide in 2025 from 4 million this year.

The government, for its part, promised to continue its infrastructure programs and to focus next year’s development policy on building human resources.

Source: The Jakarta Post: http://www.thejakartapost.com/news/2018/11/28/indonesias-digital-economy-to-dominate-southeast-asia-by-2025.html (30/11/18)


Nettelbosje 2, 9747 AE, Groningen, The Netherlands

E-mail: info@ibrgroningen.nl

IBR Malaysia & Vietnam: 
+31(0)50 - 363 3167

More contact info