Indonesia's Digital Economy Potential Reaches IDR 1,736 Trillion

The potential of Indonesia's digital economy is very significant compared to previous years.
The potential of Indonesia's digital economy is very significant compared to previous years.

The digital industry that has changed and disrupted the world turns out to have enormous potential for the Indonesian economy.

Minister of State-Owned Enterprises (BUMN) Erick Thohir said Indonesia must be able to take advantage of the momentum of the development of this digital disruption.

Erick said the world is currently facing the second wave of digital disruption. In contrast to the first wave of digital disruption which only occurred in the retail, food and beverage, and transportation sectors, Erick said that the industrial sector in the second wave of digital disruption was far more numerous, such as finance, health, insurance, education, to the media, some of which have started occur.

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Erick said that the potential of Indonesia's digital economy is very large and it is estimated that it will continue to grow to IDR 1,736 trillion in 2025. This means that the digital economy will grow significantly compared to 2015 which amounted to IDR 112 trillion, 2019 which amounted to IDR 560 trillion, and 2020 which amounted to IDR 616 trillion.

Erick said that the biggest contribution to Indonesia's digital economy came from the e-commerce, transportation and food sectors, online travel agents, and online media. Erick has also assigned SOEs to carry out a number of initiatives in developing Indonesia's digital ecosystem.

In the infrastructure sector, there is the Telkom Group which builds data centers, cloud computing, fiber optic networks, and 5G.

The Ministry of SOEs has also established the Red and White Fund which provides funding support for startups or start-up companies that have Indonesian founders, operate in Indonesia, and will go public in Indonesia.

Telkomsel will later become the aggregator. Digico from Telkomsel will be used as a player to develop digital platforms, Telkomsel as an enabler for local content creators.

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