Jakarta. Indonesia’s digital economy is projected to reach a gross merchandise value (GMV) of $90 billion (Rp 1,422 trillion) this year, marking a 13 percent increase from the previous year, according to a joint report by Google Indonesia, Temasek, and Bain & Company.

“The sectors include e-commerce, food delivery, transportation, online travel, online media, and digital financial services. E-commerce remains the main driver of Indonesia's digital economy,” Veronica Utami, Country Director of Google Indonesia, said during a presentation at Google Indonesia’s office in Jakarta on Wednesday.

This growth cements Indonesia’s status as the largest digital economy in Southeast Asia, with other countries in the region also experiencing double-digit increases.

“All sectors are growing by over 10 percent compared to last year. Some countries are seeing growth rates above 20 percent. Indonesia, with its 13 percent year-on-year growth, continues to lead Southeast Asia as the largest digital economy,” Utami added. “The economy is projected to end the year around $90 billion, sustaining strong growth despite its large base.”

Utami attributed Indonesia’s threefold increase in digital economy size to collaborative efforts within the ecosystem, aimed at tackling key challenges.

“First, there’s improved internet access. Second, we’re seeing a skilled Indonesian workforce increasingly able to compete online. Third, the focus on digital trust, funding, and monetization is crucial for sustained growth,” she explained.

Average internet speeds in Indonesia have surged, rising from 2.5 Mbps in 2014 to 25 Mbps in 2024. This improvement has fueled connectivity across the country, with internet penetration reaching 77 percent in 2024, up from 35 percent a decade ago. More than three-quarters of Indonesians now have internet access, transforming how they work, learn, and connect.

Utami anticipates further growth in the digital economy, driven by a robust economic foundation and the potential for AI to foster inclusive development.

Former President Joko "Jokowi" Widodo projected that Indonesia’s digital economy will reach Rp 5,522 trillion by 2030. He also predicted that digital payments would expand 2.5 times by 2030, reaching Rp 12,300 trillion, supported by Indonesia's demographic dividend, with 68 percent of the population in productive age groups, including Gen Y, Gen Z, and Gen Alpha.

Currently, Indonesia has 354 million active mobile devices, surpassing its population of 280 million, providing a solid foundation for digital transformation. The country is also banking on its 64 million micro, small, and medium enterprises (MSMEs) to adapt to this digital shift, opening doors to further growth in the sector.

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