Google Indonesia's Digital Economy In 2024 Reaches Rp 1,420 Trillion

, 24 Nov 2024

By ridwan@insightinnews.com The digital economy in Indonesia is projected to reach a value of 90 billion US dollars, approximately equivalent to 1,420 trillion Indonesian Rupiah, this year. This figure was reported by Google in its recent annual report titled "e-Conomy SEA 2024." The report, prepared in collaboration with Temasek and Bain & Company, provides insights into the digital economy across six Southeast Asian countries, including Indonesia. Veronica Utami, the Country Director for Google Indonesia, stated that the country's digital economy is expected to achieve a Gross Merchandise Value (GMV) of 90 billion US dollars, or about 1,419.8 trillion Rupiah, by 2024. This represents a 13 percent increase compared to the estimated GMV of 80 billion US dollars for 2023. "With this GMV, Indonesia will be the country with the largest GMV in Southeast Asia," Veronica remarked while presenting the e-Conomy SEA 2024 report at Google's office in South Jakarta on Wednesday, November 13, 2024. The Gross Merchandise Value (GMV) of the digital economy reflects the total value of purchases made by the Indonesian populace through digital platforms, essentially representing the revenue generated from consumer spending. Veronica highlighted six sectors that contribute to the growth of Indonesia's digital economy, one of which is the e-commerce sector. According to the e-Conomy SEA 2024 report, the e-commerce sector in Indonesia is estimated to have a GMV of 65 billion US dollars, or approximately 1,026.1 trillion Rupiah, in 2024, marking an 11 percent increase from 2023. This positions e-commerce as the largest contributor to Indonesia's digital economy, stated Veronica. The growth of the e-commerce sector in Indonesia is fueled by new features, such as video commerce, including live shopping. Veronica elaborated that the introduction of video commerce enhances the shopping experience for users. Furthermore, according to a report by Google, Indonesia ranks as the second-fastest growing market in terms of the number of videos uploaded by creators. The compound annual growth rate (CAGR) is projected to be 16 percent from 2022 to 2024. This indicates that over the past two years, creators have increasingly uploaded videos that encourage consumers to shop or check out on digital platforms. Veronica noted that video commerce has now become a primary driver of the e-commerce sector in Indonesia. This is evidenced by the contribution of video commerce, which is expected to rise to 20 percent by 2024, up from 5 percent in 2022.

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