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November 25, 2020, 10.05 PM

Local suppliers that have turned to online sales additionally contributed to the growth of the country’s e-commerce sector.

Furthermore, with users of video streaming and online gaming services rising during the pandemic, online media in the country has had an equally important role with a growth of 24 percent this year.

Online media in Indonesia is valued at $4.4 billion compared to a previous $3.5 billion in 2019.

In less spectacular news, the report found that the online travel segment has nosedived by 68 percent to $3 billion from $10 billion last year.

Transportation and food segments decreased by 18 percent this year to $5 billion from $6 billion.

“Amid the pandemic, e-commerce in Indonesia and online media have undergone exponential growth exceeding the segments of transportation, travel, and food which have faced challenging times.”

Read also: Women in Indonesia Have Better Employment Opportunities in Digital Era

Nevertheless, the future outlook for the two declining segments is quite promising as the report expects a 36 percent growth in 2025 or having a value of $15 billion for online travel.

The transportation and food segment is expected to post a growth of 28 percent or valued at $16 billion.

“By 2025, both segments are expected to rebound in the short to medium-term.”

As Indonesia’s digital economy expands further in the coming years, its e-commerce sector is projected to record a 21 percent growth or $8.3 billion by 2025 while online media in the country is predicted to post an 18 percent growth or $10 billion within the next five years.

(Writer: Yohana Artha Uly | Editor: Bambang P. Jatmiko)


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