Google estimates that Indonesia’s digital economy will reach approximately US$90 billion by 2024, reflecting a 13% growth compared to last year’s US$82 billion.
According to the e-Conomy SEA 2024 Report, published by Google, Temasek, and Bain & Company, the recent expansion of Indonesia’s digital economy is attributed to increasingly widespread internet access. In addition, innovations by leading e-commerce platforms have significantly enhanced user experience, contributing to this rapid growth.
Google Indonesia’s Country Director, Veronica Utami, explained that, compared to 2018, when Google released the e-Conomy SEA 2018 Report, Indonesia’s digital economy has now grown threefold.
“At that time, Indonesia’s digital economy was still US$27 billion. What does that mean? It means that, in six years, Indonesia’s digital economy has grown more than three times [its value back in 2018],” said Utami to the press during the launching event of the e-Conomy SEA Report 2024 at the Google Indonesia Office, South Jakarta, on Wednesday, the 13th of November.
Other digital sectors are also showing strong growth. Online travel is projected to expand by 24% to US$9 billion in gross merchandise value (GMV), driven by a 400% surge in international travel since 2020. Meanwhile, digital financial services are expected to achieve a gross transaction value (GTV) of US$404 billion, reflecting a 19% growth rate.
Additionally, digital lending is anticipated to reach US$9 billion in GMV, while food delivery and online media are expected to reach US$6 billion and US$8 billion in GMV, respectively.
“[Hence,] Indonesia becomes the country with the largest GMV [of the digital economy] in Southeast Asia,” added Utami.
The GMV of the digital economy represents the total value of purchases made by Indonesians through digital platforms. In simple terms, it reflects revenue generated from cumulative community spending.
“We shall see this growth that is [likely] to continue in the future. Why? There are two reasons. First, the economic foundation is getting stronger. Second, the full potential of AI to enable more inclusive growth in the future,” concluded Utami.