Indonesia's Digital Economy to Worth US$146 Billion by 2025: Google Study

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Petir Garda Bhwana

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  • A woman packs a pair of sandal from a small household industry in Denpasar, Bali, Friday, July 17, 2020. The sandals are marketed online. The Regional National Crafts Council (Dekranasda) of Bali Province encourages all small and medium enterprises (SMEs) to use digital

    A woman packs a pair of sandal from a small household industry in Denpasar, Bali, Friday, July 17, 2020. The sandals are marketed online. The Regional National Crafts Council (Dekranasda) of Bali Province encourages all small and medium enterprises (SMEs) to use digital "platforms" in marketing its business products as an effort to recover the economy due to the COVID-19 pandemic. ANTARA PHOTOS/Nyoman Hendra Wibowo

    TEMPO.CO, JakartaGoogle Indonesia predicts that the country’s digital economy by 2025 will be worth US$146 billion. The projection value is revised higher in line with the acceleration of digital adaptation by the business sector.

    Google Indonesia's government affairs and public policy Danny Ardianto explained the projection is noted in the research on the digital economy in Southeast Asia in tandem with Temasek.

    Danny said on Monday that Indonesia’s digital economy in 2021 to date reaches US$70 billion, up by 49 percent year on year from the previous year’s value of US$47 billion.

    This year’s rapid growth of digital adaptation drove Google to revise the projection in the next four years, he informed. The COVID-19 pandemic is considered to boost its acceleration.

    “We keep revising it again. It is initially US$124 billion by 2025 and is revised to US$146 billion,” Danny added.

    According to him, there are now many industrial sectors adopting technology to develop their business. They are not only large-scale businesses, but also micro, small, and medium enterprises (MSMEs). Moreover, the technology adaptation is more accelerated by the rampant presence of startups.

    Danny also acknowledged that many traditional industries, such as education and finance, are increasingly adopting digital technology in developing businesses. “We (Google Indonesia) support this growth,” he concluded.

    Read: OJK: Indonesia Forecasted to Lead Digital Economy in Southeast Asia by 2025

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