Indonesia's Digital Economy Growth Projected to Hit Rp3,216tn in 2027: Kadin

TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) predicted that the country’s digital economy growth will reach Rp3,216 trillion in 2027.

Kadin’s chairperson for communications and information, Firlie H. Ganinduto, reported that in 2020, the digital economy growth was valued at Rp1,408 trillion or around eight percent of the country’s Gross Domestic Product (GDP). This was thanks to the increasingly widespread adoption of technology in various sectors.

“It is estimated that the digital economy will continue to grow rapidly to reach Rp3,216 trillion in 2027,” Firlie said at the Kadin meeting in Jakarta on Monday, 19 June 2023.

The prediction shows significant growth of 128 percent within the next five years.

In 2027, he said, the digital economy sector is expected to contribute around 14 percent of Indonesia's GDP which reaches Rp23,533 trillion. He also hoped that this will increase and place the sector as one of the key sources of the country’s future economic growth.

“With the rapid growth in the digital economy sector, Indonesia is expected to become one of the main players in the digital economy in Southeast Asia, creating new jobs, encouraging innovation, and strengthening the country's competitiveness on a global scale,” Firlie shared optimism.

However, the Kadin official explained a number of challenges, including digital financial literacy. Public awareness of protecting personal data and business awareness of protecting consumers' sensitive data while implementing strategic steps for cyber security remain low.

AMELIA RAHIMA SARI

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