Researcher: Indonesia’s economy grows due to digital economy

Illustration. (Photo by ROBIN WORRALL on Unsplash)

Jakarta (Indonesia Window) – Indonesia’s economy is always in the test with the turmoil of the global situation, especially due to the trade war between the United States and China which has prompted a number of countries to impose protectionist policies on tariffs and quantities of imported goods.

University of Indonesia’s senior economic researcher Kiki Verico explained that the country’s economy is currently dependent on global financial conditions.


According to him, although internationally the Indonesian economy is in a depressed condition, the growth is still of high quality.

“It’s better to grow slowly, but the rates of inequality and unemployment are down. That is Indonesia at this time,” said Kiki, adding that domestically, Indonesia’s economy is growing thanks to the digital economy.

In the 2019 SEA e-Conomy report, Google said that Indonesia’s Internet-based economic value was the largest and highest in Southeast Asia at US$ 40 billion in 2019.


This value is up from US$ eight billion in 2015.

Google estimates the value of Indonesia’s Internet economy will remain the highest in Southeast Asia at US$ 133 billion in 2025.

From the value of the Internet economy, the electronic commerce (e-commerce) sector is the highest, amounting to US$ 21 billion in 2019, and is expected to rise to US$ 82 billion in 2025.


In the 2019 SEA e-Conomy report, Google said that people in Indonesia spend an average of four hours and 35 minutes per day to access the Internet through cellular phones.

Indonesia ranks third after Thailand (five hours and 13 minutes) and the Philippines (four hours and 58 minutes).

Reporting by Indonesia Window


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