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Jakarta Post

Move over, Jakarta! Small cities to grow Indonesia's digital economy

  • Eisya A. Eloksari

    The Jakarta Post

Jakarta   /   Wed, April 7, 2021   /  04:58 pm
The Jakarta Post Image
A shoemaker packs sandals on July 17, 2020 in Denpasar, Bali, for delivery to customers who purchased the footwear online.(Antara/Nyoman Hendra Wibowo)

Small cities in Indonesia are to become the biggest contributors to the country’s digital economy in the next four years, replacing metropolitan cities like Jakarta and Bandung as consumers in big cities reach maturity, says a 2021 report. Digital growth in nonmetropolitan areas such as Magelang in Central Java and Denpasar in Bali will expand around 5 times by 2025 to surpass growth in bigger cities, according to the report by Indonesia's Alpha JWC Ventures and global consultancy Kearney. The pace of growth of Indonesia’s digital economy accelerated as a result of mass digital adoption due to restrictive COVID-19 policies, and is expected to continue as start-ups expand to smaller cities. “Despite remarkable digital economy growth, most regions [in Indonesia] have yet to experience this because digital solutions are often developed and concentrat...