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Indonesia to Lead Digital Economy in Southeast Asia by 2025

Digital EconomyIndonesia’s e-commerce sector will emerge as the largest market in Southeast Asia by 2025, accounting for half of region's market value expected to be worth US$46 billion, according to a Google and Temasek’s study covering six countries in the region.

The five other countries covered in the research comprised Malaysia, Singapore, Thailand, Vietnam and the Philippines. PurpleClick Media notes that the study may benefit online marketing companies and consumers as well, as the combined value of the six Southeast Asian markets’ digital economies would reach US$200 billion by 2025.

Online Boom

Indonesia’s online population of 119 million would allow it to capture US$81 billion of the six countries’ aggregate e-commerce industry value. The uptick in online traffic in Indonesia would also mean better competition for local players.

Online store CEO Said Hadi Wenas said the rise in the country’s digital consumers compels it to find ways in providing locals with the most efficient service, while offering reasonably priced products at the same time.

However, the road to becoming the biggest digital economy in Southeast Asia doesn’t come with challenges. Google Indonesia CEO Tony Kuesgen identified a skilled workforce as the most important requirement for Indonesia to achieve an online marketplace with a US$81 billion value.

The country also needs to address other obstacles such as good Internet and logistics infrastructure, payment schemes and consumer trust, according to the research.

Marketing Technologies

The development of new technology still represents one of the most significant factors for the advancement of online marketing, Forbes reported.

For instance, the popularity of augmented reality has become more evident with the release of the Pokémon Go, despite the AR technology being existent for quite some time now. The gaming app could also serve as a transitional phase for the technology’s relevance in the digital marketing.

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Virtual reality also comes to mind in the context of new-age technologies, although it would still take a few more years prior to consumers being able to shop online by flipping through clothes racks, as if they are already in a physical store.

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