Indonesia's digital economy forecast to hit US$40 billion by 2019-end

Indonesia's digital economy forecast to hit US$40 billion by 2019-end

Managing Director of Google Indonesia Randy Jusuf (left) and Partner and Leader of Asia Pacific Digital Practice of Bain & Company, Florian Hoppe (center) at the Google Indonesia Office in Jakarta, Monday. (Mentari Dwi Gayati)

Jakarta (ANTARA) - Results of the newest research and e-Conomy SEA 2019 report made by Google, Temasek, and Bain & Company indicated that the Indonesian digital economy is forecast to reach US$40 billion until the end of 2019.

Managing Director of Google Indonesia Randy Jusuf pointed to the rapid growth in the digital economy in Southeast Asia, including Indonesia. The report also shows extraordinary transformation of the Indonesian economy that serves as a driver of dynamic growth in Southeast Asia.

"We forecast Indonesia's internet economy to reach US$40 billion this year and to move up further to over US$133 billion in 2025," Jusuf stated at a press conference at the Google Indonesia office in Jakarta on Monday.

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The newest research reports Indonesia’s growth rate at 49 percent, the highest in Southeast Asia, with potential of up to US$133 billion in 2025," he remarked.

The digital economic growth covers the five sectors of e-commerce, online media, online transportation, tour and travel, and digital financial services, according to the report.

During the four-year period, the report forecast Indonesian e-commerce to climb 12 folds and the growth of online transportation to jump six folds. The financing business in Indonesia also has the potential to exceed the 2018 record.

Jakarta and its surrounding areas, including Bogor, Depok, Tangerang, and Bekasi (Jabodetabek), will remain the key driver of growth in Indonesia. Users residing in those areas spend US$555 per capita (in GMW) in comparison with $100 per capita by those living outside large cities.  

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