The Key Enablers of The Digital Economy Growth in Indonesia

Based on the report of Year in Search - Insights for Brands 2018 (released by Google), Indonesia is the largest and fastest growing internet economy in Southeast Asia. The total internet economy is $27 billions in 2018 with 49% compounded annual growth rate in online consumer spends between 2015 and 2018.

Also from the report, we can see that the digital economy of Indonesia is expected to grow to $100 billion by 2025. A lot of this will be driven by E-commerce5, online travel and ride hailing6.

The key enablers for this growth will be online payment solutions and e-money. These products are ideal for a country like Indonesia where less than half the population is part of the formal financial system.

The use of these tools is already on the rise with the rapid growth in the number of e-money apps, along with the number of searches on how to use them. The growth of digital finance apps is 6x since 2010 and 1.5x year-on-year rise in search for e-money apps in 2017.