Jakarta, domclub Indonesia
—
Sector
e-commerce
become a motor of growth
digital economy
Indonesia, with video commerce being the main contributor.
The 2025 SEA e-Conomy report released by Google, Temasek, and Bain & Company revealed that Indonesia’s digital economy grew 14 percent Year on Year (YoY) reaching US$100 billion.
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“The e-commerce sector remains the largest contributor to GMV in Indonesia and is projected to grow by more than 14 percent to reach US$71 billion,” said Veronica Utami, Country Director of Google Indonesia in Jakarta, Thursday (13/11).
“This is a significant acceleration year-on-year compared to the previous year and this is driven by the rapid growth of video commerce,” he added.
Apart from e-commerce, the motor of growth in Indonesia’s digital economy is online transportation and food delivery which showed growth of 13 percent YoY reaching US$10 billion.
Then, there are also contributions from online media which include gaming, advertising, music and subscription-based video on demand.This sector showed the fastest growth rate, namely 16 percent YoY reaching US$9 billion.
Video commerce contribution
Veronica said video commerce is the engine that accelerates the entire e-commerce sector.
“Indonesia is an unlimited regional leader for this sector. We rank first in Southeast Asia for transaction volume and growth,” explained Veronica.
Video commerce grew 90 percent YoY with transaction volume reaching 2.6 billion transactions in 2025. This figure is almost double compared to the next largest markets, namely Thailand and Vietnam.
This increase in transaction volume, he said, was supported by an increasing ecosystem of sellers and shops which was growing very rapidly.
This report estimates the total number of sellers and stores in Indonesia to reach around 800 thousand, with fashion and accessories and beauty and personal care as the main categories, contributing 50 percent of GMV for video commerce.
Veronica explained that the characteristics of online shopping consumption in video commerce are small purchases with high volume.The average spend value per transaction is US$4.5 to US$6 per order, very low compared to the Southeast Asia average of US$11.
Apart from that, the growth of video commerce is also dominated by categories that rely on live product visualization and demonstrations.
“This massive growth in video commerce is also driven by high consumer intent or high consumer intent, especially starting from YouTube,” explained Veronica.
(lom/dmi)
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