e-Conomy SEA 2025: Indonesia’s digital economy approaches $100 billion GMV this year
Google Indonesia
8–11 minutes
13 Nov 2025
Reading time: 6 minutes
Indonesia’s double-digit digital economy growth—now the fastest in the region—is being led by Online Media. This momentum is strongly supported by the rapid development of the Video Commerce and Digital Payments sectors, both of which are the largest and fastest-growing in Southeast Asia.
e-Conomy Report 2025
According to the latest
e-Conomy SEA 2025 report released by Google, Temasek, and Bain & Company, Indonesia’s digital economy is projected to nearly reach
US$100 billion in Gross Merchandise Value (GMV) in 2025—growing 14% year-on-year and firmly maintaining its position as the largest digital economy in Southeast Asia.
All major sectors of Indonesia’s digital economy continue to record double-digit growth, with
e-commerce remaining the biggest contributor to national GMV. The sector’s value is projected to grow more than 14% to
US$71 billion, marking a significant acceleration compared with previous years. This rapid rise is driven by the explosive growth of video commerce, which saw transaction volumes surge
90% YoY to 2.6 billion transactions, along with a
75% YoY increase in the number of sellers and online stores, reaching a total of 800,000.
“The convergence of content and commerce is now inevitable: Indonesia has become the largest and fastest-growing video commerce market in Southeast Asia. This success is driven by strong digital lifestyle adoption among consumers, which has directly impacted other sectors as well. We see continued double-digit growth across major digital sectors, proving Indonesia’s momentum is spread across the ecosystem.”
— Veronica Utami, Country Director, Google Indonesia
**“Southeast Asia’s digital economy has shown tremendous growth and strong resilience, maintaining momentum despite a decade marked by investor caution and shifting macroeconomic conditions. Indonesia is the driving force behind this transformation. Indonesia’s digital economy is projected to approach US$100 billion GMV in 2025, supported by strong growth in video commerce, digital financial services, digital media, and AI adoption.
The region’s ‘digital decade’ has built a strong foundation for the next phase of value creation. The biggest opportunity now lies in how businesses leverage AI as a catalyst for impact and build trust while adjusting strategies to regional dynamics. As markets consolidate and investor confidence returns, the next growth wave will be more targeted, efficient, and innovation-driven.”**
— Aadarsh Baijal, Partner, Bain & Company
Double-digit growth trends across major sectors
Indonesia’s digital economy growth momentum extends beyond e-commerce.
Online media becomes the fastest-growing GMV sector
Online media is now the fastest-growing GMV sector in Indonesia, projected to increase 16% to
US$9 billion in 2025. This sector includes digital advertising, gaming, video-on-demand (VOD), and music-on-demand.
Gaming is the main driver, with Indonesia leading Southeast Asia by contributing roughly
40% of total mobile game downloads and
35% of regional game app revenue.
Other major sectors also continue strong growth
- Ride-hailing and food delivery remain stable contributors, projected to grow 13% YoY to US$10 billion in 2025. Platforms continue expanding offerings through subscriptions, increased trip frequency, and in-app ads to boost profitability.
- Online travel is projected to grow 11% to US$9 billion GMV, driven by the return of travel volumes to pre-pandemic levels and supported by government policies such as expanded visa schemes for visitors from China and India—resulting in double-digit increases in tourist arrivals during the first half of 2025.
Digital trust opens more opportunities in Digital Financial Services
Digital Financial Services (DFS) has emerged as one of the core pillars of Indonesia’s digital economy. Despite macroeconomic challenges, the sector continues to show impressive high double-digit growth.
Indonesia is now home to the
largest and fastest-growing digital payments market in Southeast Asia, projected to soar to
US$538 billion in Gross Transaction Value (GTV) in 2025.
This rapid momentum creates a clear strategic opportunity:
While Indonesia leads in growth rate, its absolute loan book value remains below neighbors such as Malaysia (US$14 billion) and Thailand (US$17 billion).
To close this gap, platforms can focus on
working capital financing for micro-SMEs, providing direct financial access to merchants and drivers at points of need. This focus is also emerging regionally, with new virtual banks in Thailand and Malaysia announcing similar priorities.
However, the sector’s long-term success depends on
trust. Nearly half (46%) of Indonesian consumers still trust digital financial players less than traditional banks, meaning deeper, value-oriented relationships are crucial for sustainable growth.
Indonesia becomes the key to Southeast Asia’s AI-driven future
As Southeast Asia rapidly moves toward global AI-driven transformation, Indonesia stands out as the regional leader in user adoption and commercial momentum.
This leadership is supported by exceptional user readiness:
80% of Indonesian users interact with AI-powered tools daily, the second highest in the region. Market enthusiasm is also reflected in the sharp 127% increase in AI-based app revenue between H1 2024 and H1 2025—the highest in Southeast Asia.
Beyond daily usage, strong motivation for AI transformation is evident in the workplace, with
79% of users actively learning and upskilling in AI. Their main motivations include improving efficiency, saving time on research and comparisons (51%), gaining more personalized recommendations (35%), and better security (32%).
However, despite high demand,
capital investment in Indonesia’s AI sector remains far below its potential. Indonesia has
45+ AI startups and receives
only 4% of ASEAN-10 AI funding, far behind regional hubs like Singapore (495+ startups) and Malaysia (60+ startups).
**“Investments in connectivity in recent years have built a strong foundation for Indonesia to lead AI transformation. We’re seeing widespread adoption among businesses, strong market demand, and exceptional user response—all confirming that AI is not just another tech wave, but a force reshaping how businesses operate and grow.
However, the local developer and startup ecosystem must grow faster to meet rising demand from consumers and the workforce.”**
— Veronica Utami, Google Indonesia
**“The urgency is clear. Indonesia needs to strategically convert its user enthusiasm and market momentum into domestic innovation. This requires collaboration between investors, policymakers, and businesses to build infrastructure, develop talent, ensure smart AI adoption and integration, and strengthen trust through good governance.
Indonesia is in a very strong position to secure its leadership in Southeast Asia’s AI-driven future.”**
— Veronica Utami
Pertumbuhan dua digit ekonomi digital Indonesia tercepat dipimpin oleh Media Online. Momentum ini didukung kuat oleh perkembangan sektor Video Commerce dan Pembayaran Di…
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