E-commerce drives Indonesia’s 16% digital economy growth

Detailed summary

Indonesia’s e-commerce market continues to expand despite economic and regulatory headwinds as platforms compete for increasingly price-conscious consumers while businesses look to artificial intelligence and digital finance for further growth.

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Indonesia’s e-commerce market continues to expand despite economic and regulatory headwinds as platforms compete for increasingly price-conscious consumers while businesses look to artificial intelligence and digital finance for further growth.

ndonesia's digital economy is projected to grow by 16 percent in 2026 to reach US$119 billion in gross merchandise value (GMV), with e-commerce accounting for the largest share at an estimated $85 billion, according to the latest e-Conomy SEA report by Google, Temasek and Bain & Company.

The expansion comes amid economic and regulatory headwinds, with platforms competing to retain increasingly price-conscious shoppers.

Indonesian E-Commerce Association (idEA) chairman Budi Primawan said platforms had reported positive sales around Nov. 11, a "double-date" shopping event synonymous with major online discounts.

Budi described the projected e-commerce growth as a positive signal but cautioned against equating higher transaction volumes with a stronger business performance.

"GMV is the value of trade, not platform revenue or sellers' profits. Therefore, transaction growth does not necessarily reflect an improvement in spending power or business profitability," he told The Jakarta Post on Thursday.

idEA targets Rp 40 trillion in transactions from Dec 10-16, around the 2026 National Online Shopping Day (Harbolnas) of Dec. 12, up from Rp 36.4 trillion last year.

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Opening of the article, excerpted from The Jakarta Post. To read the rest, open the article on the publisher's site.