Indonesian Political, Business & Finance News

Indonesia's Digital Economy Predicted to Reach USD 130 Billion in 2025

| Source: GALERT
Jakarta - Indonesia's digital economy is predicted to experience a massive surge, with its value exceeding Rp 2,100 trillion.

"In terms of investment realisation, Indonesia's digital economy is predicted to reach USD 130 billion in 2025, or approximately 44% of the total digital economy in Southeast Asia. Since 2017, it has grown eightfold, dominated by e-commerce," said Ricky Kusmayadi, Deputy for Information Technology and Investment at the Ministry of Investment and Downstreaming/BKPM, at the launch of the JK1 data centre in South Jakarta on Thursday (15/5/2025).

Ricky further revealed that Indonesia's digital economy would reach USD 360 billion, or approximately Rp 5,953 trillion, by 2030. This figure is also expected to contribute up to 11% of gross domestic product (GDP), with a target contribution of 20% by 2045.

He said Equinix's investment in Indonesia, specifically the establishment of a data centre, is aligned with the government's commitment to accelerating digital transformation as a priority sector in achieving the 8% economic growth target.

"Indonesia has a key economic transformation strategy set out in the RPJMN (National Medium-Term Development Plan) 2025 to 2029, one of which is Digital Transformation. These strategies serve as the primary foundation for driving Indonesia's economic transformation and strengthening long-term national resilience," Ricky said.

Equinix officially launched its new data centre in Jakarta, the JK1 Jakarta International Business Exchange (IBX), developed in collaboration with Astra International.

Equinix Chief Business Officer Jon Li said JK1 does not merely provide data storage facilities. He explained that the company is also developing an ecosystem of partners and innovators to accelerate artificial intelligence (AI) in Indonesia.

Ricky noted that Indonesia is one of the key players in driving data centre growth. He revealed that by 2028, data centres in the country are predicted to reach 936 megawatts, growing more than 210% compared to the current capacity of approximately 430 megawatts.

"With high demand, strong connectivity, good AI readiness, as well as affordable energy and land costs, data centre growth in Indonesia is well supported. Additionally, neighbouring countries' moratorium policies also represent a positive factor for Indonesia," Ricky concluded.

He expressed confidence that this investment can make a significant contribution to the economy, human resource development, and digital transformation. Ricky also hoped that the launch of Equinix's first data centre in Indonesia would attract more multinational companies to the country through globally interconnected digital infrastructure, thereby driving domestic innovation and enhancing Indonesia's economic competitiveness.
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