Indeed, Indonesia is set to account for the bulk of the total internet economy of Southeast Asia, according to a recent report titled “e-Conomy Southeast Asia 2019” by Google, Temasek and Bain & Co. The report’s authors estimated that the Indonesian internet economy will reach a whopping US$130 billion in gross merchandise value by 2025, with an average growth rate of 49% since 2015. That is more than one-third of the estimated US$300 billion GMV of the internet economy in Southeast Asia, making Indonesia a giant in its own right within the region. Certainly, investment money is pouring in — the same report showed that funding into the economy in Indonesia stood at US$1.8 billion invested in 1H2019 alone.
The republic’s young, 264 million-strong population and burgeoning internet economy make it a behemoth in the region. Yet, it is hampered by a highly complex regulatory landscape and a massive, fragmented domestic market. In the third of our series on Southeast Asia, we take a look at Indonesia’s challenges and opportunities.
SINGAPORE (Oct 14): Indonesia now has five unicorns, the moniker given to start-ups valued at more than US$1 billion ($1.4 billion). OVO, the digital payments service unit under Lippo Group, has joined the ranks of Gojek, Tokopedia, Traveloka and Bukalapak, apparently fulfilling a government target, according to Indonesia’s Communications and Information Minister Rudiantara, who disclosed it on national media Antara on Oct 5.
