Jakarta, IO – In today’s era of digitalization and media convergence, there is a paradigm shift toward a trend in which individuals can now generate income through digital platforms, the amount of which is sometimes even greater than that from their main job. Cristiano Ronaldo, one of the global icons of football, is a clear example of this phenomenon. He is able to generate much more money from social media than from his contract with Juventus FC in 2019.
The advent of social media and other digital platforms allows celebrities and public figures to create new income streams through advertising, endorsements and sponsorships. Social media, with millions of users, allows celebrities like Ronaldo to reach a global audience and commercialize his popularity through various deals and partnerships. This shows how an online presence can be monetized to create additional economic value.
Not only big-name celebrities, many ordinary people have become content creators, streamers or influencers by creating interesting content and generating income through platforms such as YouTube, Instagram and TikTok. They utilize these platforms to build personal brands, advertise products, or earn income through donations and subscriptions.
The global economy is currently experiencing a major shift, where the conventional economy is transforming into a digital economy. Changes in consumer behavior, targeting those who prefer online services, have opened up a new window of opportunities in the advertising sector, which has increasingly turned to digital platforms. Data shows that digital advertising dominates the global advertising market, reflecting changes in media consumption, where a younger generation prefers to access content via the convenience of their smartphones, rather than through legacy media such as television and radio.
Indonesia, as one of the largest digital markets in Southeast Asia has, also saw a significant increase in its internet penetration rate, which has reached 78.2 percent in 2023, an impressive jump from a mere 22.7 percent in 2011. With the number of internet users estimated at 215.6 million, the digital economy potential in Indonesia is enormous. (FIGURE-1)
Another factor is the expanding middle class, citizens who mostly spend on secondary needs, including gadgets. Furthermore, half of Indonesia’s population is classified as members of the Millennial generation and Gen Z, and they are technologically literate. In fact, the majority of them are on the internet more than eight hours a day.
Thrown into the mix of Indonesia’s population of 277 million, the size of the digital economy in Indonesia is understandably the largest in the Southeast Asian region. It is estimated to hit US$77 billion in gross merchandise value (GMV) in 2022, accounting for 40 percent of the digital economy market in the six largest economies in Asean. In 2025, Indonesia’s digital economy is even forecast to reach US$130 billion and by 2030 it will grow to between US$220 billion and US$360 billion, outpacing that of Vietnam and Thailand. (FIGURE-2)
A further breakdown shows that of the country’s US$77 billion digital economy volume, 70 percent was contributed by e-commerce. This means that e-commerce is the backbone of Indonesia’s digital economy, compared to sub-sectors such as transportation, travel and media. The sheer size of the e-commerce trade has significantly disrupted traditional markets or brick-and-mortar retailers. One can easily see that several department stores have closed shop between 2016 and 2023. Making the headlines recently is the complaint by traders at the Tanah Abang textile wholesale market that they have seen significantly fewer buyers nowadays.