Capital Inflow to Digital Industry Stagnates

By Editorial Team 08/10/2019
Summary

Indonesia's digital economy sales turnover may post the highest growth in Southeast Asia. On the other hand, the capital inflows to the industry are expected to stagnate, even will likely decline.

In a research titled "e-Conomy SEA 2019", Google, Temasek, and Bain & Company estimate Indonesia's digital economy sales turnover to grow from US$ 40 billion this year to US$ 133 billion in 2025, equals to Rp 1,862 trillion. The estimate is the highest in Southeast Asia, surpassing Thailand, which is estimated at US$ 50 billion, Singapore by US$ 27 billion, and US$ 26 billion in Malaysia. However, capital inflows into Indonesia will remain unchanged from US$ 4 billion in 2018 with transaction frequency below 400 times.

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