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Digital economy reaches new highs in 2019 despite skills gap, cyberattack issues
“The e-commerce and ride-hailing sectors are growing rapidly due to large funding and tight competition from local and regional players."
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Illustration of e-commerce, which drives Indonesia's digital economy in 2019 along with ride-hailing services. (Shutterstock.com/one photo)
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ndonesia’s burgeoning digital economy continues to reach new heights this year, largely driven by ride-hailing and e-commerce industries, despite several problems including a lack of skilled workers and cyberattacks that could hamper future growth.
Indonesia’s digital economy is expected to be worth US$40 billion this year, up from last year’s $27 billion, representing a 48-percent growth, according to the annual e-Conomy Southeast Asia 2019 report by Google, Temasek and Bain & Company.
The e-commerce and ride-hailing industries are firing on all cylinders this year, with compound annual growth rates (CAGR) projected to be 88 percent and 56 percent, respectively, between 2015 and 2019. Gross merchandise value (GMV) is expected to be $21 billion for e-commerce and $6 billion for ride-hailing.
Meanwhile, online travel and online media, which includes gaming, are also enjoying double-digit growth. Online travel grew at a CAGR of 19 percent with a transactions value of $10 billion, while online media grew 56 percent to $4 billion.
