Google's E-Conomy SEA 2024: Indonesia's Digital Economy Increases Thanks To E-commerce And Creator Community

JAKARTA Google, together with Temasek and Bain & Company, shared an e-Conomy SEA 2024 report. In the report, it is recorded that Indonesia's digital economy will increase compared to last year.

There are six sectors that are part of the digital economy, according to Google Indonesia Country Director Veronica Utami. These six sectors are e-commerce, food delivery, transportation, online travel, online media, and financial services.

Of these six sectors, Veronica said that e-commerce is still the main driver of the digital economy in Indonesia. This sector experienced growth of 11 percent next year with a Gross Merchandise Value (GMV) of US$65 billion (Rp1,025 quadrillion).

"For Indonesia itself, we continue to see strong growth, 13 percent year-on-year (YoY) compared to last year. Indonesia remains the country with the largest digital economy in Southeast Asia and it is estimated that this year will end at around 90 billion USD (IDR 1,420 quadrillion)," said Veronica on Wednesday, November 13.

The e-commerce platform is the driver of the digital economy because its various features continue to develop. Currently, a number of e-commerce have used features such as video commerce or live shopping to improve user experience.

"Now that video commerce should be a very important strategy for all businesses in implementing e-commerce strategies. Whether it's a live shopping or videos made by creators, this video is an important part of consumer decision making in shopping," said Veronica.

With the widespread use of video commerce in attracting user attraction, Google says that this e-commerce support feature is closely related to creators on social media. Video commerce has also formed a group called the creator economy.

The creator economy is a term given to creators who take advantage of monetization systems from various platforms or social media. They are directly involved with marketers and audiences so that they can affect e-commerce income.

These creators come from different categories, but are dominated by gaming categories. Some of the other categories are food and beverage, fashion, film, travel, science and technology, home and DIY, animals, as well as health, fitness, and self-help.

"The rapidly growing video creator community in Indonesia is the second fastest growing community in the region after Singapore. (This finding) indicates Indonesia's great potential in this area," explained Veronica.