President Jokowi Projects Digital Economy Reach $146 Billion in 2025

TheIndonesia.co - President Joko Widodo (Jokowi) projects Indonesia's digital market to be valued at $146 billion, or equivalent to Rp2,092 trillion, at an exchange rate of Rp14,332 per dollar, by 2025.

“In 2021, the number increased by 49 percent to reach approximately $70 billion as compared to the figure in 2020. The growth of our digital market was accelerated due to the pandemic," he remarked while inaugurating the Digital Generation Acceleration Movement, Wednesday, December 15, 2021.

Furthermore, Jokowi noted that Indonesia's digital market potential had reached $40 billion in 2019, $47 billion in 2020, and $70 billion in 2021. Amid the COVID-19 pandemic, the sector is growing fast due to the public’s increasing requirement to shop safely by minimizing physical contact with other customers.

Logistics services also grew by 60 percent, as online shopping activities became a new lifestyle and the importance of goods delivery also increased concurrently, according to the president.

Hence, the number of new digital consumers also rose 10.2 percent, while electronic money transactions soared 55 percent as of October 2021. "All figures in the digital economy sector are climbing. Hence, the market potential is huge," Jokowi stated.

The head of state noted that Indonesia should ready a digital economic development strategy so that it will not be left behind. "I have told ministries, state-owned enterprises (SOEs), and other institutions that we do not have much time to catch up,” he emphasized.

Jokowi assessed that Indonesia will become advanced if it is willing to leap forward. However, there are several challenges to overcome, including preparing local digital talent and providing quality mentors for them.

Hence, the SOEs Ministry has initiated to establish a Merah Putih Fund to help fund domestic small and medium start-ups, especially those with a valuation of around $200 million.