Indonesia's Internet Economy Now Reaches 2.9% of GDP

The value of the internet economy (Gross Merchandise Value/GMV) in Southeast Asian countries in 2015 was only US$32 billion, or about 1.5% of the Gross Domestic Product (GDP). This grew to US$72 billion, or 2.8% of GDP, in 2018 and is projected to increase to US$240 billion, or 8% of the region's GDP, by 2025. This significant transaction value is supported by the growing demand for subscription-based video and music services, as well as other sectors.

Compared to the US internet economy, which has reached 6.5%, the Southeast Asian GMV still lags behind, but the gap narrowed in 2018. Vietnam's internet economy is the fastest-growing, reaching 4% of its GDP. The Philippines, currently at 1.6% of its total economy, still has significant growth potential.

Indonesia's internet economy accounts for 2.9% of its GDP, placing it third in the region. The value of Indonesia's online-based economic transactions in 2018 reached US$27 billion, a 49% growth (CAGR) from 2015—the fastest in the region. Supported by 150 million internet users, Indonesia's internet economy is projected to grow to US$100 billion, or Rp 1,440 trillion, by 2025.