Illustrative photo (Photo: thoibaotaichinh.vn)Jakarta (VNA) – Indonesia's digital economy willmaintain its upward trajectory until 2030, with a projected value ranging from220-360 billion USD, according to recent studies.
The e-Conomy SEA research study by Google, Temasek, and Bain& Company, the digital economy of Indonesia reached 77 billion USDin 2022, 22% higher than that of 2021. The figure is anticipated to continuerising, reaching 130 billion USD in 2025 and potentially ranging from 220billion USD to 360 billion USD by 2030.
Director of the Digital Economy Centre of Economic and Law Studies(Celios) Nailul Huda said that Indonesia's digital economy has demonstratedrobust growth since 2019, even in the face of financial challenges resultingfrom reduced venture capital investments in tech startups during 2021 and 2022.
He said after the period commonly dubbed as the "techwinter", Google revised its projection for Indonesia's digital economy in2025 from 146 billion USD to 130 billion USD.
Speaking at the BNI Investor Daily Summit (IDS) 2023 on October24, Naiul said that Indonesia's digital economy over the last five years,especially from 2019 to 2021, saw significant growth. However, its growth washindered by the stagnation in investments by investors during the 2021-2022period.
Corina Leyla Karnalies, Digital & Integrated Transaction BankingDirector at BNI, said that during the COVID-19 pandemic, there was a massiveshift towards digitalisation in Indonesia. When social restrictions wereimposed during the pandemic, physical bank branches had to close, compellingbanks to digitalise their services.
George Hendrata, CEO of Tiket.com, expressed optimism about thepotential for greater growth in Indonesia's digital economy which isapproximately 40% of the digital economies of Southeast Asian countries with atotal value of around 194 billion-200 billion USD in 2022.
Indonesia has also survived the challenging times of COVID-19.Currently, its tourism industry, including online travel, is beginning torecover, Hendrata said.
He added that Indonesia's online travel market has grown byapproximately 2-3 times the growth of the gross domestic product (GDP). Whilethe national economic growth rate of about 5%, the total online travel markethas seen growth ranging from 10-15%.
Despite this growth, online travel penetration in Indonesia isstill at around 45%, much lower than in advanced countries like China (60%),the US, or the EU (80%)./.
