Indonesia’s rise as a formidable player in global technology is nothing short of remarkable. The country has emerged as a Southeast Asian digital economy powerhouse, spurred by a growing tech-savvy population, improved infrastructure, and strategic public-private investments.
A joint research from Google, Temasek, and Bain & Company revealed that Indonesia’s digital economy is one of thefastest growing in the region, which is forecasted to exceed US $130 billionby 2025.1
Today, Indonesia is not just an emerging tech giant but a trend-setter in Southeast Asia; it is a strategic opportunity for many tech investors, entrepreneurs, and multinationals.
Indonesia’s startup ecosystem is not only dynamic, but yields significant scale up potential. Today the nation boasts 15 “unicorn” companies including Gojek, Tokopedia (now GoTo), Bukalapak, Traveloka, OVO and Akulaku. These giants exemplify Indonesia’s innovative spirit and ability to serve local needs and global scalability. For example, GoTo’s integration of ride-hailing with everyday services has not only transformed urban living but also captured the attention of global investors including Google, Tencent, Temasek Holdings and Abu Dhabi Investment Authority through its US $1.1 billion listing on the Indonesian Stock Exchange (IDX) in 2022.
For business leaders, this represents a fertile ground for partnerships, acquisitions, and collaborations that can drive significant returns. With strategic government initiatives and support, including the visionary “Making Indonesia 4.0” initiative, Indonesia is poised to be a global digital leader by 2030. Renowned global players, namely SoftBank and Sequoia Capital are already operating in the country working with local venture capital (VC) firms.
In addition, Indonesia’s e-commerce market – the largest in Southeast Asia – is a thriving sector driven mainly by a digitally savvy middle class and youthful population, supported by a diverse digital payment ecosystem. . This booming sector is expected to reach US $194.20 billion by 2030.2
With 185 million internet users, Indonesia stands as the world’s fourth-largest online community, driven primarily by Millennials and the Gen Z generation which is 63% of the population, according to the National Socioeconomic Survey.3 Spending an average of two to eight hours online daily, these young Indonesian consumers are highly engaged and receptive to digital offerings.
As the tech-savvy population of Indonesia shapes the country’s digital forefront and future, brands now have a myriad of digital platforms to leverage for building their brands, awareness and reach into Indonesia. Communications tools including WhatsApp, Telegram as well as TikTok and Instagram have grown exponentially in popularity across Indonesia. These apps are equally popular with younger and older Indonesians as tools for “keeping up with the Joneses” and in touch!
Beyond demographics, the nation’s strong sense of community extends to the digital realm including the aforementioned social media apps, with Facebook, and X (formerly known as Twitter) going beyond social networking to becoming sources of news, information, commerce, and community engagement hubs. Meanwhile the older generation depend very much on broadcast (TV and radio) – which has seen a resurgence – and analogue communications where internet penetration is limited. The diversity and broad reach makes the country a sophisticated communications environment.
Today Indonesia is Southeast Asia’s largest media market serving as a springboard for companies looking to expand in the country and the region.
The country’s rapidly developing media and press scene is a dynamic fusion of traditional titles, brands, digital influencers, thriving social media, powerful broadcasters, and influential provincial news titles.
Any brand’s success hinges not just on visibility but demands deep engagement with the market’s unique networks, channels, and understanding the cultural intricacies. The true challenge lies in creating narratives that resonate with Indonesia’s diverse and multicultural audience.
The wide spectrum of communications platforms also represents a challenge and complexity that can overwhelm the communications practitioner by erroneously investing in channels that are ineffective, out-dated, and lacking the penetration. This can be costly and in the long run erode the brand in the country.
To that end, a partner who understands the nuances of your brand, the solution and how it fills a position in the local eco-system enables a shorter time to market.
Choosing the right partner – one with a proven track record, nuanced expertise, and the ability to create shareable, educational content – is essential to achieving success in Indonesia. The right partner can help navigate and understand local consumer behaviours, preferences, and trends to resonate with your target audience. Not only will this help to amplify your brand’s presence, it will also ensure that your message is conveyed effectively across multiple channels, from social media platforms to traditional communication methods.
Throughout Priority Consultant’s 12 years of experience partnering with diverse clients in Indonesia – ranging from finance, energy, commercial, real estate, dairy brands to foundations, quasi-government NGOs, and multinationals in education, technology, and cybersecurity – we have witnessed and partnered in contribution to the dynamic development of Indonesia’s media landscape. If your organisation is seeking to enhance media or influencer relations in Indonesia or requires strategic counsel for your market programme, we would love to help. Speak to us.
Let’s start the conversation.
