JAKARTA (TheInsiderStories) – Indonesia will lead the Southeast Asia internet economy in 2025 with a value of US$133 billion, according to a report released by Google, Temasek and new partner Bain & Company on Thursday (10/03). With this growth, Indonesia will contribute to the Southeast Asia internet economy with a predicted value of $300 billion in 2025, three times higher than this year’s estimation of $100 billion.
The calculation includes the value of e-commerce goods, online vehicle services, online media, and online travel business sites. While in the next sequence, the Southeast Asia internet economy will also be supported by Thailand at $50 billion, Vietnam at $43 billion, Singapore at $27 billion, Malaysia at $26 billion, and the Philippines at $25 billion.
The growth makes Southeast Asia as one of the fastest-growing regions in the world in terms of online trade, Bloomberg reported. This is due to the high number of young people who are accustomed to using smartphones. Of all the categories, e-commerce remains the highest point in the Southeast Asia internet economy. Then, followed by online services for attractive offers, in-app entertainment, and online delivery.
While this year, Indonesia’s digital economy is estimated to reach $40 billion. Google Southeast Asia Managing Director Randy Jusuf said the figure was five times higher than figure in 2015 of $8 billion. The biggest driving factor of the economy on the internet was Indonesian startups which cover five sectors, e-commerce, online media, online transportation, travel & travel, and digital financial services.
Google predicts Indonesian e-commerce will grow 12-fold in the next four years. That is because Indonesia is in the top 10 countries in the world with the highest cellular internet users. Internet users in Indonesia are connected to mobile internet, for more than four hours a day.
Meanwhile, Bank Indonesia (BI) also encouraged the development of the digital economy. The bank’s deputy governor Sugeng said this was done by encouraging the increase in payment transaction electronification. Then the central bank also pushed the online marketing preparation program for micro, small and medium-sized enterprises (MSMEs) to the digital economy.
“Digital economic development can be achieved through good synergy between Bank Indonesia and relevant authorities and with industry players so that it can support the progress and excellence of Indonesia,” he said.
Furthermore, Erwin Haryono, the bank’s director of payment system policy department said that policymakers in Indonesia must be appropriate in responding to disruption in the form of digitalization developments. The central bank also took note of this in developing initiatives to support the development of the digital economy.
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