Indonesia aims for 40 pct of ASEAN's digital economy market share by 2025

Minister of Trade Muhammad Lutfi (Photo: Indonesian Ministry of Trade)

Jakarta (VNA) - The Indonesian government has set a target that the country's digital economic growth may account for around 40 percent of the digital economy market in ASEAN by 2025.

Minister of Trade Muhammad Lutfi made the remark during a meeting with the Commission VI of the House of Representatives of Indonesia on August 23.

In 2021, it is estimated that the value of e-commerce transactions will reach 354.3 trillion IDR (24.6 billion USD), an increase of 33.11 percent compared to 2020, which stood at 266.2 trillion IDR.

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

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

Not only in Indonesia, e-commerce also has an increasing role in regional economic growth. At present, e-commerce trade’s contribution is recorded at 7 percent of the total gross domestic product of ASEAN. The value of e-commerce trade is expected to hit 200 billion USD by 2025. 

E-commerce in ASEAN grew seven-fold to 38 billion USD in 2019 from just 5.5 billion USD four years earlier./.

VNA