Business

Indonesia aims for 40% Asean digital economy market share by 2025

Value of e-commerce trade expected to hit US$200 billion

Updated 5 years ago · Published on 24 Aug 2021 3:30PM

Indonesia aims for 40% Asean digital economy market share by 2025
Indonesia’s Trade Minister Muhammad Lutfi says the government has set a target that the country’s digital economic growth may account for around 40% of the digital economy market in Asean by 2025. – Muhammad Lutfi Twitter pic, August 24, 2021

JAKARTA – The Indonesian government has targeted for the country’s digital economic growth to account for around 40% of the digital economy market in Asean by 2025.

Trade Minister Muhammad Lutfi made the remark during a meeting with Commission VI of the House of Representatives of Indonesia yesterday, a Vietnam news agency reported.

This year, it is estimated that the value of e-commerce transactions will reach 354.3 trillion Indonesian rupiah (RM103.8 billion), an increase of 33.11% compared with last year, which stood at 266.2 trillion Indonesian rupiah.

Meanwhile, the transaction volume is likely to reach 1.35 billion, a year-on-year surge of 38.17%, it added.

The minister said that the development of the digital economy can no longer be contained, as the flow of digital transactions has begun to enter its second and third waves with the emergence of players in new sectors.

Beyond Indonesia, e-commerce also has an increasing role in regional economic growth. At present, e-commerce trade’s contribution is recorded at 7% of the total gross domestic product of Asean. The value of e-commerce trade is expected to hit US$200 billion (RM843.6 billion) by 2025.

E-commerce in Asean grew sevenfold to US$38 billion in 2019 from just US$5.5 billion four years earlier. – Bernama, August 24, 2021

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