COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/71/SET.M.EKON.3/02/2023

Government Encourages Faster Economic Recovery by Optimizing Digital Economic Potential

Jakarta, February 28th, 2023

The national economy shows resilience and continues to recover faster, supported by improved domestic economic fundamentals, such as increased consumption, investment, and exports. In addition, it is also supported by the great potential of digital economic growth in the last two years, one of which is motivated by the increasingly contactless behavior of society, which more often relies on e-commerce and on-demand services, such as ride-hailing, online food delivery, and online logistic.

Based on the Google Temasek Study Bain & Company (2022), Indonesia's digital economy in 2022 will reach USD 77 billion or grow 22% from 2021. Indonesia managed to become a major player in the ASEAN digital economy, as around 40% of the total value of ASEAN digital economy transactions came from Indonesia. Investment in Indonesia's digital economy sector has also grown positively, as indicated by the investment deal value in the first quarter of 2022 of USD 3 billion, the second-highest value after Singapore.

With the positive performance of the digital economy sector, its valuation value is expected to double to USD 130 billion by 2025 and will reach USD 220-USD 360 billion by 2030. This achievement is supported by the condition of Indonesia, which has a majority of the productive age population, then has more than 2,400 start-up companies, so it is ranked 6th in the world with the largest number of start-ups, and the internet penetration rate, which has reached 76.8%.

"In the short term, the government encourages the use of domestic products, strengthens and expands access to People’s Business Credit as a driving force for MSMEs, controls inflation to maintain people's purchasing power, and strengthens the domestic market," said the Coordinating Minister for Economic Affairs Airlangga Hartarto when giving a virtual keynote speech in "Gojek Outlook 2023: the Key to Sustainable Growth by Strengthening the Loyal Customer Base" event, in Jakarta, Tuesday (28/02).

Meanwhile, for the medium term, the Government will continue to strengthen the tourism sector through Special Economic Zones (SEZs), build downstream natural resource-based industries, diversify export markets, and promote the Digital Economy Framework Agreement in the 2023 ASEAN Chairmanship.

In the long term, the Government is committed to continuing economic transformation by increasing competitiveness, investment, human resources (HR) productivity, and employment through the implementation of the Job Creation Law and also digital transformation, which is one of the keys to accelerating recovery and increasing the resilience of the national economy.

"The government appreciates Gojek as the leading on-demand service provider in Southeast Asia, and we hope Gojek can continue to present a variety of inclusive service innovations, consistently provide digital solutions that focus on informal communities, such as driver-partners and MSMEs, and respond to changes in post-pandemic consumer behavior," said the Coordinating Minister Airlangga.

Through synergy and collaboration between Gojek and the Government, especially in the food and transportation sub-sectors, it will realize a potential of USD 39 billion by 2025, growing at an average of 20% (CAGR 2022-2025). "I hope that Gojek Outlook 2023 can strengthen cross-sector and multi-stakeholder collaboration and help to create various innovative digital solutions for the community," Coordinating Minister Airlangga concluded.

Also attending the occasion were the Deputy for Coordination of the Digital Economy, Employment, and MSMEs of the Coordinating Ministry for Economic Affairs, the Director of the GoTo Group, and the Executive Director of Next Policy. (rep/dlt/tam/map/fsr)

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Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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