Indonesia Looks to E-Commerce to Drive Economic Growth

The Indonesian government is looking to e-commerce as a key driver of economic growth, with the aim of achieving a 6 percent growth rate by 2027. Coordinating Minister for the Economy Airlangga Hartarto emphasized the importance of supporting the e-commerce ecosystem during a recent meeting at the Ministry of Trade in Jakarta. Despite physical stores still being the dominant form of trading, Airlangga stated that Indonesia's e-commerce market is expanding rapidly.

The digital economy value reached US$100 billion in 2025, reflecting the growing importance of digital platforms in the country's economy.

Airlangga highlighted the emergence of video commerce as a significant growth area, with transactions increasing by 90 percent annually to reach 2.6 billion times. This growth is attributed to the increasing number of active social media users in Indonesia, which currently stands at 180 million, a 26 percent annual increase. To capitalize on this trend, the government is focusing on optimizing technologies such as artificial intelligence (AI) to enhance online store algorithms and better target consumers.

In an effort to boost e-commerce sales, Airlangga set an ambitious target of Rp40 trillion in transactions by the end of 2026, a 10 percent increase from the previous year's achievement of Rp36.4 trillion. This target is being pursued through the National Shopping Day (Harbolnas) program, which will take place from December 10-16, 2026. Harbolnas aims to promote local products, including goods and services such as accommodation and transportation tickets.