Enviro News Asia, Washington, D.C. — Indonesia’s digital economy reached US$99 billion in 2025, marking a 14 percent increase from 2024, according to data compiled by Google, Temasek, and Bain & Co. The country maintained its position as the largest digital economy in Southeast Asia, driven by robust advancements across major online sectors.
E-commerce contributed the largest share, generating US$71 billion in transactions, followed by online transport and food services at US$10 billion. The online travel sector and digital media each recorded US$9 billion in value. The findings were presented by Sapna Chadha, Vice President of Google Corp., during the E-Conomy in Southeast Asia 2025 Meeting hosted by the U.S. Chamber of Commerce in Washington, D.C., on December 10, 2025. The session was attended by ASEAN ambassadors, including Indonesia’s Ambassador Indroyono Soesilo, as well as U.S. industry leaders.
The survey further revealed that video commerce transactions grew significantly, rising 75 percent to 800,000 videos and increasing 90 percent in transaction volume to US$2.8 billion annually. Fashion and accessories accounted for the largest share of video commerce transactions at 28 percent, followed by personal care and beauty at 20 percent, and mobile phones and electronics at 10 percent. The trend reshaped consumer behavior and generated new business opportunities for sellers and digital platforms.
Indonesia’s digital financial services sector also recorded rapid growth, supported by widespread adoption of QRIS as a cross-border payment technology across several Asian countries. Digital payments, online lending, investment platforms, and online insurance services each experienced double-digit expansion.
The digital gaming market posted strong performance, with downloads increasing by 40 percent and revenues contributing 35 percent of total industry earnings. The survey also noted Indonesia’s policy support for gaming technology development, including government incentives, the formulation of a national Gaming Digital Roadmap, and the establishment of gaming innovation hubs in several cities.
Artificial intelligence adoption emerged as one of the most notable findings. Commercial activities supported by AI recorded revenue growth of up to 127 percent annually, although Indonesia’s AI investment accounted for only 4 percent of ASEAN’s total. The survey indicated that 80 percent of Indonesian respondents use AI daily, including 68 percent who interact with AI chatbots and 50 percent who rely on AI-based decision-making tools.
With a population of 285 million, Indonesia continues to attract global technology companies seeking to invest in digital infrastructure, including data center development. Industry players view Indonesia as a strategic entry point to the broader ASEAN market of 700 million people. The report emphasized that Indonesia must prepare competitive regulations, expand electricity and water infrastructure, and strengthen its digital talent pool to maximize future growth. (*)
