Indonesia’s digital economy to grow eight-fold by 2030

14 June, 2021 12:00 AM printer

Jakarta: Indonesia’s digital economy is predicted to grow up to eightfold from 632 trillion Rupiah (44.4 billion USD) in 2020 to 4,531 trillion Rupiah (319 billion USD) by 2030, Minister of Trade Muhammad Lutfi has said.

“E-commerce will play a crucial role (by contributing) 34 percent, or 1,900 trillion Rupiah (to the digital economy),” he said following a meeting at the Presidential Palace on June 10, report agencies.

Meanwhile, the business-to-business digital economy is projected to contribute 13 percent, or 763 trillion Rupiah, and technology-based health services (health-tech) are expected to contribute 8 percent, or 471 trillion Rupiah, to the digital economy, Lutfi said.

“These are parts of what we have discussed that our e-commerce has a very high level playing field,” he was quoted by Indonesia’s Antara news agency as saying.

In other sectors, economic activities that adapt to digital technology will also support the growth of the national gross domestic product (GDP) in 10 years’ time, such as online travel, online media, and digital transport services.

He said Indonesian digital economy has a bright future.

“In 2020, the digital economy contributed 4 percent of the GDP. In 10 years’ time, or by 2030, the GDP will grow from 15,400 trillion Rupiah to 24,000 trillion Rupiah,” he said.

Meanwhile, Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, underscored the need for micro, small, and medium businesses to get involved in the development of the digital economy, under President Joko Widodo’s instructions.

He said the President has called for an accelerated digitalisation of micro, small, and medium businesses.

According to data from the Indonesian E-Commerce Association, 13.7 million, or 21 percent of micro, small, and medium enterprises, have become a part of the digital ecosystem as of May this year.