Most people cannot imagine life without mobile phones, paritcularly those who live in big cities as people now use it for most daily tasks in life. Mobile phones offer a convenient way to travel anytime and anywhere through booking a ride on ridehailing apps. Shopping and purchasing goods are also made simpler with e-commerce apps. 

Traveling is also made easier by using mobile phones as people can effortlessly book accomodations, transportation, and even entertainment with just a single click. The use of digital technology is transforming and indeed disrupting all sectors. Despite all the conveniences that technology brings, its full potential may be used a driver for the digital economy. 

Indonesia’s Digital Economy and Economic Performance Outlook 

*The digital economy data includes measured the total revenue from e-commerce, digital health, apps, digital media, digital advertising, e-services, smart homes, and fintech. 2022 onwards are forecast 

Source: Statista (2022) 

As illustrated in the graph above, the digital economy continues growing year after year. Indonesia experienced a 414% spike from 2017 to 2021 and the digital economy is expected to double in size by roughly 62% between 2021 and 2025. 

Furthermore, despite a slowdown in GDP, the digital economy persists in thriving. Indonesia’s digital economy is mainly driven by financial technology and e-commerce and is expected to grow in the coming years. The transformation of digital payment systems using the Quick Response Indonesian Standards (QRIS) has culminated in a constant rise in the number of users. This phenomenon highlights how everything is increasily interconnected, compelling organizations to embrace a new business strategy. 

As digital technology advances, new business models are critical to delivering more connections while also aiming for expansion and profitability. Similarly, the banking industry struggles in the face of an extensive downpour of financial technology. Phan, Narayan, Rahman, and Hutabarat (2019) discovered that their bank’s performance suffered from volatility in their financial system as financial technology expanded. 

This development might be due to a shift in consumer habits. Three facts support this argument are internet penetration, societal demographics, and customer behavior. 

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