E-Commerce to drive Indonesia’s digital economy in 2022

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INA_Infografik e-Conomy SEA 2022
Trend of Indonesia’s digital economy. Source: e-Conomy SEA 2022 Report (Indonesia).

Jakarta, IO – Google, Temasek and Bain & Company released the 2022 SEA e-Conomy Report where they projected that Indonesia’s digital economy will reach GMV (Gross Merchandise Value) of US$77 billion this year, up 22 percent year on year.

Not only that, by 2025 the country’s digital economy is also projected to hit US$130 billion with a Compound Annual Growth Rate (CAGR) growth of 19 percent. Then by 2030, growth will more than triple to reach between US$220-360 billion.

Google Indonesia managing director Randy Jusuf said the e-commerce sector continues to drive the digital economy in Indonesia. Its value is estimated to reach US$59 billion in 2022. According to him, although offline shopping activities are starting to rebound, the e-commerce sector accounts for 77 percent of the overall digital economy. This means that e-commerce is the main sector that boost the digital economy in Indonesia.

“Indonesia has the second fastest growing e-commerce sector (after Vietnam), but apart from GMV there are many dimensions of growth that must now be focused on,” he said.

Read: Deputy Trade Minister Indonesia can weather global economic recession

Apart from e-commerce, several other digital service sectors – ride hailing, food delivery to financial services – also have substantial contribution to the national digital economy. (un)