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Indonesia’s internet economy to reach $70 billion in 2021
The gross merchandise value (GMV) of the country's digital economy has seen double-digit growth while the overall economy was brought down by the pandemic.
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Illustration of the digital economy (Shutterstock/Zapp2Photo)
I
ndonesia’s digital economy is projected to grow almost 50 percent this year on the back of exceptionally fast development in the e-commerce segment, a trend that will continue at least until 2025, according to an industry report.
The "e-Conomy SEA 2021" report released by technology company Google, Singaporean state-owned investment firm Temasek Holdings and business consultancy Bain & Co estimates that Indonesia’s internet economy – measured in gross merchandise value (GMV) – will grow to US$70 billion this year.
That marks an increase of 49 percent from $47 billion last year.
“Last year, our digital economy grew 18 percent; that is why we speak of digital economy resiliency. But growth has accelerated this year, and that is why we call it a resurgence,” Google Indonesia managing director Randy Jusuf told The Jakarta Post on Friday.
The e-commerce segment is predicted to reach $53 billion this year, suggesting it will hold its position as the biggest of four markets highlighted in the report. The three other verticals, namely online media, online travel and transport and food, are only in the single-digit billion range in terms of GMV.
However, Randy said the growth of e-commerce in Indonesia would proceed at a slower pace from 2021 to 2025, given the higher baseline in terms of user numbers.
