Summary:

Indonesia’s digital economy is growing at an impressive rate. According to a report by Google, Temasek, and Bain & Company, Indonesia’s internet economy is expected to reach $124 billion by 2025, making it one of the fastest-growing economies in the world.

Despite rapid internet penetration, Indonesia continues to experience a significant digital divide between urban and rural areas. Before the pandemic, the urban-rural divide in internet access amounted to 24.8 percentage points. However, with the COVID-19 pandemic forcing many Indonesians to work and learn remotely, the digital gap has narrowed marginally to 22.5 percentage points in 2021. While progress has been made, more work is needed to bridge this gap and ensure that all Indonesians, regardless of where they live, have access to the benefits of the digital age.

Highlights:

• Despite rapid internet penetration (5 percentage points annually), Indonesia experiences high urban-rural digital divide.
• Pre-pandemic, the urban-rural digital divide in Indonesia amounted to 24.8 percentage points. The gap slightly decreased to 22.5 percentage points in 2021 post-covid.

Data Source: Indonesia’s Statistical Bureau (BPS)

*Internet access is determined by whether adults (age five and over) reported using the internet, including social media apps within the past three months.

Article By Bima Satria

Graphic By GE, Yixuan