E-commerce, the Mainstay of Indonesia's Digital Economy

Economics & Macro

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Adi Ahdiat 13/11/2024 15:10 WIB

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According to a report by Google, Temasek, and Bain & Company, e-commerce is a major pillar of Indonesia's digital economy, contributing approximately 70% of the national GMV.

Projected Gross Merchandise Value (GMV) of Indonesia's Digital Economy by Sector (2024)*

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Projected Gross Merchandise Value (GMV) of Indonesia's Digital Economy by Sector (2024)*

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E-commerce, or online trading activity, is the main pillar of Indonesia's digital economy. This is evident from the e-Conomy SEA 2024 research report released by Google, Temasek, and Bain & Company.

Google, Temasek, and Bain & Company measure the value of the digital economy in Southeast Asian countries based on gross merchandise value (GMV), which is the value of goods/services sold within a specific period.

The calculation includes the GMV from several key digital economy sectors, namely e-commerce, online food delivery, online transportation, online travel/tourism agents, and online advertising/entertainment media.

In 2024, the total GMV of Indonesia's digital economy is estimated to reach US$90 billion.

E-commerce is the largest contributing sector to the GMV, with a value of US$65 billion, equivalent to 72% of the total national GMV.

Meanwhile, the GMV contribution from the transportation/food delivery, travel/tourism agents, and advertising/entertainment media sectors is smaller, as shown in the graph.

A similar pattern is also seen in previous years. According to the report by Google, Temasek, and Bain & Company, in 2022-2023 the e-commerce sector contributed between 74% and 76% to the total GMV of Indonesia's digital economy.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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