Jakarta, CNBC Indonesia – The overall value of Indonesia’s digital economy could reach US$ 82 billion (Rp. 1,307 trillion) based on gross merchandise value (GMV) projections throughout 2023. This figure was obtained from the results of the eConomy SEA 2023 research conducted by Google, Temasek, and Bain&Company.
Research states that Indonesia’s economic growth is still predicted to rise higher than the regional average and will be the main driver of digital economic growth.
This year, the online travel sector is the industry that experienced the highest growth compared to the previous year.
Indonesia’s online travel GMV is projected to grow from US$ 3 billion in 2022, to US$ 6 billion in 2023.
The compound annual growth rate (CAGR) of this sector is projected to increase 21% to US$9 billion by 2025.
Meanwhile, the e-commerce sector is still the main driver with GMV projected to grow from US$ 58 billion in 2022, to US$ 62 billion in 2023. With CAGR projected to increase 15 percent to US$ 82 billion.
Indonesia’s online media sector also grew 5 percent YoY from US$ 6 billion to US$ 7 billion over the past year. The online media sector in Indonesia is estimated to grow to US$ 8 billion by 2025 with a CAGR of 12 percent.
Research finds that Indonesia will have strong growth in all sectors of the digital economy in 2023. Except for the transportation and food sectors.
The transportation and food sectors experienced a decline in GMV, from US$ 8 billion last year, to US$ 7 billion in 2023.
However, the CAGR of this sector is projected to increase 13 percent to US$ 9 billion by 2025.
E-commerce, food delivery and ride-hailing players have reduced the number of promotions and incentives they offer in pursuit of growth and profitability.
Their growth slowed after price-sensitive consumers chose other options. However, the number of loyal users is still quite large, thus offsetting the decline in market growth with an increase in net income growth.
[Gambas:Video CNBC]
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