Southeast Asia’s digital economy is hitting a major milestone, with a new report projecting it to surpass $300 billion in gross merchandise value by the end of 2025. Released just days ago by Google, Temasek, and Bain & Company, the e-Conomy SEA 2025 report shows the region has grown steadily at 15% year-over-year, fueled by e-commerce, fintech, and rising AI adoption. Indonesia stands out as the leader, expected to reach over $146 billion on its own, thanks to its young population and booming online services. This matters because it signals stronger economic resilience in the region, creating jobs and attracting global investment amid global uncertainties.

In Indonesia specifically, fresh momentum is building around tech startups and innovation. Recent announcements highlight 42 innovators selected by Telkom for a major festival in 2025, showcasing new ventures in digital tools and AI. Meanwhile, PT Solusi Sinergi Digital partnered with Japan’s NTT DOCOMO and NEC to launch the world’s first 5G Open RAN-based internet service, offering speeds up to 100 Mbps for underserved areas. These moves are significant as they address connectivity gaps, potentially boosting rural economies and positioning Indonesia as a hub for AI-driven tech in Southeast Asia. Reports also note about 680 AI startups across the region, with Singapore drawing the most funding, but Indonesia’s scale gives it an edge in practical applications.

Looking ahead, watch for updates on AI investments, as the report predicts the digital economy could triple to $1 trillion by 2030 if trends hold. Keep an eye on policy shifts in Indonesia that could ease startup regulations, and any new funding rounds that might accelerate these projections—though exact outcomes depend on global economic factors.