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Indonesia’s internet economy to grow more slowly but remain region’s biggest: Report
While the growth forecast has been revised down, Indonesia’s internet economy is expected to remain the biggest in Southeast Asia.
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Digital economy illustration. The e-Conomy SEA 2020 report by technology behemoth Google, Singaporean state-owned investor Temasek and global consultancy Bain & Co. projects growth of 11 percent for Indonesia’s internet economy this year to a value of US$44 billion. (Shutterstock.com/mrmohock)
Indonesia is expected to remain the biggest internet economy in Southeast Asia despite the raging COVID-19 pandemic taking its toll, an industry study shows.
The e-Conomy SEA 2020 report by technology behemoth Google, Singaporean state-owned investor Temasek and global consultancy Bain & Co. expects Indonesia’s internet economy to grow 11 percent year-on-year (yoy) this year to reach a value of US$44 billion as Southeast Asia's digital economy is expected to reach $105 billion. Indonesia and Vietnam are the only two countries projected to book double-digit growth this year.
“We believe the growing number of talented developers, a young population and government support for the digital economy are all helping drive this momentum,” Google Indonesia managing director Randy Jusuf told The Jakarta Post on Wednesday.
Indonesia’s digital economy has thrived in recent years as more people have access to the internet, opening access for small businesses and start-ups to more customers. The number of internet users in Indonesia increased by 14.6 percent to 196 million people last year from 171 million in 2018, the Indonesian Internet Providers Association (APJII) nationwide survey has shown.
The survey also revealed that Indonesia’s internet penetration rate has gone up to 73.7 percent from 64.8 percent in 2018.
The e-Conomy SEA 2020 report reveals that Indonesia’s e-commerce industry is growing at 54 percent this year, while online media are expanding at 24 percent. Meanwhile, transportation and delivery contracted 18 percent, and online travel saw a 68 percent decline due to the pandemic.
