The Economic Impact of the On-demand Service Industry in Indonesia
The on-demand service industry in Indonesia has become a vital component of the country’s digital economy, improving the everyday lives of millions of Indonesians through its multi-service platforms.
Our analysis suggests that the industry, which covers ride-hailing and delivery services, facilitated a total economic contribution worth Rp91.7 trillion to Indonesia’s economy in 2023. In addition, the industry also supported an estimated 588,000 jobs and contributed Rp33.2 trillion in household income. This impact is generated through purchases on the on-demand service platforms and the economic activity it supports among the local supply chains in the wider Indonesian economy.
For every employee hired by platform operators, an additional 112 workers are supported in other parts of the Indonesian economy. Every Rp100 of GDP generated by purchases made through on-demand service platforms leads to further economic activity worth Rp110 across the rest of the Indonesian economy.
Beyond its economic contributions, the on-demand service industry promotes financial inclusion in Indonesia by offering unbanked individuals and small merchants access to financial services and microloans. On-demand service platforms also connect driver-, delivery-, and merchant-partners to Indonesia’s digital economy, enhancing digital literacy and creating new pathways for economic participation.
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Bali Kaur Sodhi
Lead Economist, Economic Impact
Hwee Shi Yong
Assistant Economist, Economic Impact
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