Google: Indonesia's Digital Economy to be Southeast Asia's Largest by 2030

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Viva Budy Kusnandar 28/10/2022 17:40 WIB

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According to research by Google, Temasek, and Bain & Company, Indonesia's digital economy will be the largest in Southeast Asia until 2030.

The Economic Value of Southeast Asia's Digital Economy (2022-2030)

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The Economic Value of Southeast Asia's Digital Economy (2022-2030)

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According to research by Google, Temasek, and Bain & Company, Indonesia's digital economy will be the largest in Southeast Asia until 2030.

In 2022, Indonesia's digital economy is estimated to have reached US$77 billion. This value is predicted to continue to rise with a compounded annual growth rate (CAGR) of 19%, reaching a range of US$220 billion to US$236 billion by 2030.

Below Indonesia is Vietnam, whose digital economy is expected to have a CAGR of 31% and reach US$120 billion to US$200 billion by 2030.

Then, the Philippines' digital economy is predicted to have a CAGR of 20% and reach US$100 billion to US$150 billion by 2030.

Although the overall projections are positive, Google, Temasek, and Bain & Company assess that the Southeast Asian digital economy will not reach its full potential without inclusion of low-income consumers and suburban communities.

They also believe that sustainable growth will heavily depend on good environmental and social governance.

"The Southeast Asian digital economy is expected to generate 20 million tons of emissions by 2030. This is significant, although still lower than other sectors. A number of digital businesses have launched emission reduction and recycling initiatives, but much more can be done to have a greater impact," they stated.

"In the social sphere, the digital economy has created 160,000 high-skilled jobs, indirectly supporting almost 30 million jobs, and assisting businesses of more than 20 million merchants and 6 million restaurants. A dialogue regarding the welfare of worker partners is necessary," they continued.

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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Google: Indonesia's Digital Economy to be Southeast Asia's Largest by 2030

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