Indonesia’s digital economy trade value reaches 26.7 bln USD in 2021

The potential of the digital economy in Indonesia in 2025 is estimated to reach 2,050 trillion rupiahs (some 136.8 billion U.S. dollars) and expected to increase eight times to 4,531 trillion rupiahs (some 302.4 billion U.S. dollars) in 2030.

 

Jakarta (Indonesia Window) – The trade value of Indonesia’s digital economy in 2021 is estimated to reach 401 trillion rupiahs (about 26.7 billion U.S. dollars) as acceptance and online shopping preferences increase, supported by a digital payment system, Coordinating Minister for the Economy Airlangga Hartarto said.

“The potential of the digital economy and finance has bright prospects to be optimized into new sources of growth,” according to Airlangga at the Opening of the 2022 Indonesian Digital Economy and Finance Festival which is also a side event of the G20 Indonesia in Nusa Dua area, Bali province on Monday.

He noted that the potential of the digital economy in the country in 2025 is estimated to reach 2,050 trillion rupiahs (some 136.8 billion U.S. dollars) and expected to increase eight times to 4,531 trillion rupiahs (some 302.4 billion U.S. dollars) in 2030.

The growth of the digital economy sector was also recorded in the value of electronic money which increased by 32.25 percent in 2021, transactions through the Quick Response Code Indonesian Standard (QRIS) or the national payment standard code which grew 245 percent, and the value of digital banking transactions which rose by 20.82 percent on an annual basis.

In addition, Indonesia currently has 2,391 startups, two decacorns, and eight unicorns.

According to Airlangga, Indonesia is the most popular digital investment destination in Southeast Asia or represents 40 percent of digitalization in the region with a value of up to 300 trillion rupiahs (about 20.02 billion dollars).

The improvement of a conducive business climate is also an alluring factor for potential investors to develop their businesses in the country.

“The economic and financial digitalization continues to be accelerated by improving financial inclusion outcomes, according to the Financial Inclusive Economic Survey organized by Bank Indonesia (BI) and the National Council for Financial Inclusion,” Airlanga added.

In the survey, he continued, the number of account ownership is 65.4 percent with financial products and services 83.6 percent.

Under these conditions, he is optimistic that financial inclusion in Indonesia can reach the target of 90 percent by 2024, in line with efforts aimed at strengthening synergies, accelerating, and implementing this sector at the national and regional levels.

The World Economic Forum (WEF) noted that currently, there are 202 million internet users who are expected to contribute at least 70 billion U.S. dollars to Indonesia’s digital economy in 2021.

Reporting by Indonesia Window