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26 October 2021 (closed)
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Below is a list with tagged columns and company profiles.
Today's Headlines Digital Economy
In recent months most attention went to the merger of Indonesian ‘superapp’ Gojek and e-commerce giant Tokopedia – including their plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). But we should not forget that another Indonesian e-commerce giant (and tech startup unicorn), called Bukalapak, is scheduled to list on the IDX on 6 August 2021.
Although we already discussed the (then-looming) merger between Aplikasi Karya Anak Bangsa (Gojek) and Tokopedia in detail in our January 2021 report, we do feel it is justified to cover this topic once more – albeit slightly more succinct this time – since it is now official (announced on 17 May 2021) that both sides re to merge, thus creating a massive entity (named GoTo) with an impressive and unique ecosystem.
Indonesia does not want to be left behind in terms of developing its digital economic potential. In early March 2021, the Indonesian government inaugurated the "Indonesian-style Silicon Valley" called Nongsa D-Town. This 5,000 m2 area is located on Batam Island, which is positioned very close to Singapore.
Digital banks will soon become a reality for Indonesians. Chief Executive of Banking Supervision of Indonesia's Financial Services Authority (in Indonesian: Otoritas Jasa Keuangan, or OJK) Heru Kristiyana recently confirmed that this supervisory agency is currently drafting regulations for the establishment of digital banks in Indonesia.
Possibly the biggest story in local Indonesian media over the past couple of days (if we exclude coverage of any COVID-19-related matters) is the news that Gojek is in talks (in fact in the final stages, reportedly) to merge with Tokopedia. Based on the input of people familiar with the matter, the two companies have agreed to conduct due diligence on their respective businesses.
Multinational management consultancy McKinsey & Company predicts that - by adopting digital technology - the micro, small and medium-sized enterprises (MSMEs) of Indonesia can contribute up to USD $140 billion to Indonesia's gross domestic product (GDP) by the year 2030.
The Internet has been one of the most revolutionary technologies in human history. It has made the world a much smaller place by revolutionizing communications. Internet has opened the doors to an enormous amount of information and data that are readily available by only a click or two (thereby completely changing the way people access and consume information).
On Friday (07/02) Indonesia Investments released the January 2020 edition of its monthly report. In this first edition of 2020 we zoom in on the digital economy of Indonesia.
Going digital through mobile devices is a big game in Indonesia, especially in the e-commerce industry. Among the developing countries, Indonesia is a growing digital market with a +100 million internet population and an average of 87 percent of mobile traffic, proving that Indonesia is a mobile-first country.
The value of the e-commerce market in Indonesia is estimated to have grown to the range of USD $55 - $65 billion by 2022. This estimate stems from a new report, titled The Digital Archipelago: How Online Commerce is Driving Indonesia's Economic Development, that was released by management consulting firm McKinsey earlier this month.
Latest Columns Digital Economy
The digital economy of Indonesia has been booming over the past 15 years. Today, life without Internet, smartphones, and apps is unimaginable for most people (both for personal and business reasons).
Indonesia’s digital economy is very promising. Near the end of 2019, Google and Singaporean wealth fund Temasek revised their projection for Indonesia's Internet economy (upwards) to reach USD $133 billion, in total value, by 2025. This would be a big jump from the value of around USD $40 billion in 2019.
The COVID-19 outbreak has continued to impact digital media consumption worldwide. Internet platforms, such as e-commerce, now play a pivotal role in our daily lives. On the bright side of current situations, e-commerce is growing all over the world, including in Indonesia. This is because behavioral shifts amongst Indonesians to choose online platforms as their safest place to conduct their daily activities, such as shopping, working or just meeting with some friends.
It is something the central government of Indonesia has been planning and weighing for several years now, but the coronavirus (COVID-19) crisis seems to have sped up the efforts. Per 1 July 2020, the Indonesian government imposes a 10 percent value-added tax (VAT) on sales of imported digital products and services.
Indonesia, the world’s 16th-biggest economy, recently joined the “trillion-US dollar club” having a nominal gross domestic product (GDP) of USD $1.01 trillion. Meanwhile, the country’s annual economic growth has been going at a pace of around 5.0 percent over the past couple of years.
It came as a big surprise to us. Only three days before the new and somewhat controversial e-commerce tax regulation would come into effect, Indonesia’s Finance Ministry decided to delay its execution.
It’s not only a question of being digital or not; it’s more about the level ofdigital transformation that you are willing to take.
Indonesia has four unicorns – a term that refers to startup companies that are valued over USD $1 billion – namely: (1) ride-hailing and logistics company Go-Jek, (2) e-commerce operator Tokopedia, (3) e-commerce operator Bukalapak, and (4) airline ticketing and hotel booking services Traveloka.
Indonesia's eCommerce boom leads to rising demand for new logistics goods delivery concepts. This has been a problem for many brand owners and retailers that lack the technology and expertise in a distribution network. At e2eCommerce Indonesia 2018, around 2,000 attendees from eCommerce, retailers and SMEs will gather to seek answers to these problems. Are you a reliable logistics & fulfillment company? Do you have solutions for eCommerce business? Join us and exhibit your services!
The volume of Indonesia’s digital economy will reach about USD $130 billion by 2020, which will make the country among Southeast Asia's leading nations in terms of digital development. This was stated by local authorities just a week ago. New technologies, blockchain and transformation of the IT-sector will play key roles in this process. With this context in mind, the Blockchain INDO conference in Jakarta, to be held on 11-12 May 2018 in the Kempinski Hotel in Central Jakarta, becomes even more relevant.
