indo01

Minister projects Indonesia’s digital economy to grow 8 folds in 2030

Jakarta (ANTARA) – Trade Minister Muhammad Lutfi has forecast Indonesia’s digital economy to record an eightfold growth in 2030 to reach Rp4,531 trillion, from Rp632 trillion currently.

“The e-commerce sector is estimated to still dominate the map of Indonesia’s digital economy in 2030, with a contribution of Rp1,908 trillion, or around 33-34 percent from the total digital economy,” Minister Lutfi stated at the virtual Gambir Talk in here Tuesday.

The minister later noted that another major contribution will come from the business-to-business scheme, including supply chains and logistics, amounting to Rp763 trillion, or 13 percent.

Meanwhile, online travel is estimated to reach Rp575 trillion in 2030 or contribute 10 percent to the entire value of the digital economy.

“For corporate services, it is estimated to touch Rp529 trillion, or equivalent to nine percent,” he remarked.

Minister Lutfi noted that in 2020, Indonesia’s digital economy has only contributed four percent to the gross domestic product (GDP). However, in 2030, Indonesia’s GDP is estimated to grow at least 1.5 folds, from Rp15,400 trillion to at least Rp24,000 trillion.

“One of the sources of economic growth in Indonesia and also the world in the future is the digital economy. This is, of course, not only limited to e-commerce but also includes broader economic activities, such as finance, travel, education, and health,” he remarked.

Currently, Indonesia, as the country with the fourth-largest population in the world, with more than 197 million people having access to the internet, is projected to increase its internet users by 250 million in 2050.

“Moreover, measured on the basis of the Gross Merchandise Value (GMV), Indonesia’s digital economic potential is very large and projected to be able to exceed other countries in the ASEAN,” he stated.

GMV is the accumulated value of purchases from users through the site or application within a certain period.

Source: https://en.antaranews.com/news/193845/minister-projects-indonesias-digital-economy-to-grow-8-folds-in-2030