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A new report from the New Zealand Embassy in Jakarta explains how Indonesia's digital economy is experiencing robust and rapid growth, projected to exceed $US 146 billion, driven by its large, young, and digitally-inclined population, increasing internet penetration, and a thriving e-commerce, ride-hailing, food delivery, and fintech landscape.
Indonesia is undergoing a profound digital transformation, driven by a national ambition to become a leading digital economy by 2045. Indonesia's digital economy is experiencing robust and rapid growth, projected to exceed $US 146 billion by 2025. This transformation is not merely technological — it is a structural shift in how the government delivers services, how businesses operate, and how citizens engage with the state and economy.
This expansion is primarily driven by a young, tech-savvy population, increasing internet penetration, and the swift adoption of digital services across various sectors. The ecommerce sector, in particular, has witnessed exponential growth, fuelled by the convenience and accessibility offered by online platforms. Ride-hailing and food delivery services have also become integral to daily life, transforming urban mobility and consumption patterns.
The fintech sector is rapidly evolving, offering innovative solutions for payments, lending, and investments, thereby increasing financial inclusion. This digital transformation has not only created new economic opportunities but also fostered a vibrant startup ecosystem, attracting significant domestic and international investment.
At the heart of this effort is a coordinated strategy involving multiple ministries, with the Ministry of National Development Planning (Bappenas) playing a pivotal role.
Indonesia’s digital transformation is anchored in several key planning documents: Digital Industry Development Roadmap: This roadmap outlines the country’s strategy to support inclusive and sustainable economic transformation through digitalization. When releasing the report, Bappenas projected that the digital economy would reach Rp 4,800–5,400 trillion (NZ$ 505-568 billion) by 2030. Medium-Term National Development Plan (RPJMN) 2025–2029: This plan integrates emerging technologies such as artificial intelligence (AI) and blockchain into national development strategies. It also emphasizes smart cities, green digital innovation, and digital public services as key pillars of Indonesia’s long-term vision.
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Asia Media Centre
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