After years of acceleration, the growth in the use of the digital technology is now gradually returning to normal, with the wealthy and technology-savvy youth in urban areas becoming the largest users of digital services.
Jakarta (ANTARA) - The e-Conomy SEA 2022 report has projected that the gross merchandise value (GMV) of Indonesia's digital economy will reach US$77 billion by the end of 2022.



"Indonesia has the second-fastest growing e-commerce sector (after Vietnam). However, apart from GMV, there are many dimensions of growth that must now be focused on," Google Indonesia managing director Randy Jusuf said during an online discussion, which was followed from here on Tuesday.



According to Jusuf, to drive short-term growth, businesses now need to focus more on achieving profitability by cutting costs and optimizing operations.



The digital economy is projected to grow at a compound annual growth rate (CAGR) of 19 percent to reach US$130 billion by 2025, and more than triple to around US$220 billion to US$360 billion by 2030.


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In Indonesia, e-commerce, transportation, and food delivery services are the top three digital services with near-wide usage rates among digital users in urban areas.



Meanwhile, the value of the e-commerce sector, which has continued to drive the digital economy, is expected to reach US$59 billion this year. Though offline shopping activity is now starting to revive, the e-commerce sector accounts for 77 percent of the overall digital economy.



The GMV of transportation and food delivery is projected to reach US$8 billion in 2022 and continue to grow at a CAGR of 22 percent to touch US$15 billion by 2025. Meanwhile, online travel services have shown 60-percent growth compared to the previous year to reach US$3 billion this year.


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Digital financial services are also growing thanks to the post-pandemic shift in offline-to-online behavior. In 2022, the gross total value (GTV) of digital payments in Indonesia is estimated to reach US$266 billion and continue to grow by 17 percent to reach US$421 billion by 2025.



"After years of acceleration, the growth in the use of the digital technology is now gradually returning to normal, with the wealthy and technology-savvy youth in urban areas becoming the largest users of digital services," said Jusuf.



The majority of digital players have shifted their priority from acquiring new customers to creating deeper engagement with existing customers, he added.



The e-Conomy SEA report is a multi-annual report that combines data from Google Trends and Temasek, analysis from Bain & Company, and information from various industry sources and interviews with experts regarding the digital economy of six countries in Southeast Asia, namely Indonesia, Vietnam, Malaysia, Thailand, Singapore, and the Philippines.


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Translator: Aji Cakti, Katriana
Editor: Fardah Assegaf
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