Indonesia’s digital economy could grow to $300 billion
Indonesia’s digital market could reach a volume of between $200 billion and $300 billion per year in the coming years, up from currently $40 billion, CNBC cited John Riady, director of Indonesian conglomerate Lippo Group, as saying.
“Indonesia is the most exciting digital and technology market in Asia and arguably the world,” Riady told CNBC on May 27.
“When our group first invested in technology in 2012, the size of the entire technology market in Indonesia was approximately $100 million. That same asset class today is about $40 billion,” he added.
Indonesia is the largest economy in Southeast Asia and the world’s fourth-most populous country with around 275 million people. The country is home to several so-called unicorn start-ups – private companies valued at $1 billion and higher – including e-commerce firm Bukalapak, digital payment service company OVO and GoTo, the new holding created from the merger of Gojek and Tokopedia.
More Internet users, growing middle class boost digital economy
Investors have said the country’s growing number of Internet users and expanding middle class are the best preconditions for a digital boom. In addition, the growth potential of Indonesia’s tech scene has paved the way for Internet start-ups that have captured the attention of international investors.
However, one problem stands in the way of rapid growth: Indonesia’s topography and diversity. The large population is spread across more than 10,000 inhabited islands, and many have their own culture and language which makes both logistics and communication a challenge.
Indonesia’s digital market could reach a volume of between $200 billion and $300 billion per year in the coming years, up from currently $40 billion, CNBC cited John Riady, director of Indonesian conglomerate Lippo Group, as saying. “Indonesia is the most exciting digital and technology market in Asia and arguably the world,” Riady told CNBC on May 27. “When our group first invested in technology in 2012, the size of the entire technology market in Indonesia was approximately $100 million. That same asset class today is about $40 billion,” he added. Indonesia is the largest economy in Southeast Asia and...
Indonesia’s digital market could reach a volume of between $200 billion and $300 billion per year in the coming years, up from currently $40 billion, CNBC cited John Riady, director of Indonesian conglomerate Lippo Group, as saying.
“Indonesia is the most exciting digital and technology market in Asia and arguably the world,” Riady told CNBC on May 27.
“When our group first invested in technology in 2012, the size of the entire technology market in Indonesia was approximately $100 million. That same asset class today is about $40 billion,” he added.
Indonesia is the largest economy in Southeast Asia and the world’s fourth-most populous country with around 275 million people. The country is home to several so-called unicorn start-ups – private companies valued at $1 billion and higher – including e-commerce firm Bukalapak, digital payment service company OVO and GoTo, the new holding created from the merger of Gojek and Tokopedia.
More Internet users, growing middle class boost digital economy
Investors have said the country’s growing number of Internet users and expanding middle class are the best preconditions for a digital boom. In addition, the growth potential of Indonesia’s tech scene has paved the way for Internet start-ups that have captured the attention of international investors.
However, one problem stands in the way of rapid growth: Indonesia’s topography and diversity. The large population is spread across more than 10,000 inhabited islands, and many have their own culture and language which makes both logistics and communication a challenge.
