Indonesia's Digital Economy Set to Surpass $130 Billion by 2026

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Indonesia’s Digital Economy Set to Surpass $130 Billion by 2026

Indonesia

Market Insight

Indonesia’s digital economy is projected to reach a valuation of $130-150 billion by the end of 2026, according to a new report by ProSpace Research Institute. The growth represents a 25% increase from current valuations, cementing Indonesia’s position as Southeast Asia’s largest digital market.
Key drivers include increased smartphone penetration in tier-two and tier-three cities, improved internet infrastructure across the archipelago, and government initiatives supporting digital transformation. E-commerce continues to lead the sector, with fintech and ride-hailing services showing the strongest growth trajectories.
“We’re witnessing digital adoption accelerating beyond Java and major urban centers,” says Dr. Anwar Santoso, Digital Economy Analyst at ProSpace. “Regulatory frameworks are increasingly supportive of innovation while maintaining necessary protections.”
The report highlights that over 30 million new internet users have come online since 2023, with 68% actively participating in the digital economy. Investment in Indonesia’s tech ecosystem reached $4.7 billion in 2024, with early indications showing 2025 could surpass this figure.
Challenges remain in digital literacy, cybersecurity readiness, and infrastructure gaps in eastern Indonesia. However, public-private partnerships are addressing these issues through targeted programs.
For businesses, the expanding digital economy presents opportunities in e-commerce enablement, digital payment solutions, and cloud services tailored to local needs.
For further information: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates

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Climate Finance Initiatives Creating Green Investment Opportunities Across Africa

Africa

Business News

Innovative climate finance mechanisms are creating substantial green investment opportunities across Africa, mobilizing capital for projects that combine climate impact with commercial returns. These initiatives are channelling unprecedented funding into renewable energy, sustainable infrastructure, and climate-smart agriculture.
Key developments include specialized green bond programs designed for African issuers; blended finance vehicles combining concessional and commercial capital; results-based financing tied to verified carbon reductions; and climate-focused venture capital targeting early-stage innovations.
These mechanisms have mobilized over $8.5 billion in climate-aligned investments during 2024, with particularly strong flows into distributed solar, green transportation infrastructure, and resilient agricultural systems.
“Africa’s climate finance landscape has evolved significantly beyond grant funding to create genuine investment opportunities with attractive returns,” explains Dr. Kofi Mensah, Sustainable Finance Director at ProSpace Indonesia. “The most successful approaches combine climate impact with clear commercial models addressing Africa’s development priorities.”
ProSpace Indonesia provides specialized climate finance advisory services, including opportunity assessment, mechanism selection, and implementation planning.
For information on African climate finance opportunities, contact ProSpace Indonesia at +62 877 8887 7678 or email info@prospaceindonesia.com. Follow @prospace.indonesia on Instagram for insights on Africa’s evolving sustainable finance landscape.

E-commerce Adoption Surges Among Indonesia’s Silver Generation

Indonesia

Market Insight

Indonesia’s e-commerce landscape is experiencing an unexpected shift as shoppers aged 55 and above emerge as the fastest-growing demographic, according to new data from ProSpace Indonesia’s Consumer Behavior Study.
The report shows a 78% increase in e-commerce participation among Indonesians over 55 during the past 18 months, compared to 23% growth across all age groups. This “silver generation” now accounts for 17% of Indonesia’s e-commerce spending, up from just 6% in 2023.
“We’re seeing a fundamental shift in shopping behaviors among older Indonesians who previously preferred traditional retail,” notes Rini Sutanto, Consumer Research Director at ProSpace. “Improved user interfaces, voice search capabilities, and trusted payment systems have broken down the technological barriers.”
Health and wellness products, groceries, and religious items lead purchases in this demographic, while fashion and electronics show stronger growth among younger consumers. The trend has prompted major platforms like Tokopedia and Shopee to develop features specifically targeting older users.
Regional adoption remains uneven, with Java and Bali showing the highest e-commerce penetration among seniors at 42%, while eastern Indonesia lags at 19%. However, all regions show positive growth trajectories.
For retailers, the shift represents an opportunity to tap into a demographic with significant purchasing power and brand loyalty potential.
For market insights: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates

FAQ's

Frequently Asked Questions!

Whether you’re exploring business setup in Indonesia, visa options, or office solutions we’re here to help make your journey smooth and stress-free.

What services does ProSpace offer?

ProSpace offers comprehensive services for businesses interested in international opportunities:

Business Development Services

Trade expo participation assistance in Indonesia and Africa
Business matchmaking with potential partners
Market research and opportunity identification
Product registration and certification
Market entry strategy development
Distribution channel setup
Sales representation
Joint venture facilitation

Immigration Services

Business visa processing for international travel
Work permit applications and extensions
Dependent visa arrangements
KITAS (limited stay permit) processing
KITAP (permanent stay permit) applications
Exit permit only (EPO) processing
Multiple entry visa arrangements
Immigration status conversion

Business Setup Services

Company establishment (PT PMA, PT Local)
Representative office setup
Legal entity documentation
Tax identification registration
Business licenses and permits
Virtual office arrangements
Nominee services (when legally appropriate)
Corporate secretarial services

Trade Expo Services

Booth registration and space selection
Custom booth design coordination
Professional staffing for expo representation
Translation and interpretation services
Product display arrangement
B2B meeting facilitation
Lead generation and follow-up
Post-expo business development

Travel & Accommodation

Flight booking coordination
Hotel reservations near business venues
Airport transfers and local transportation
Meeting venue arrangements
Interpreters for business meetings
Cultural orientation for business travelers
Telecommunications setup
Emergency assistance

Our services are designed to remove complexity from international business development, allowing you to focus on your core objectives.

How can ProSpace assist with business setup in Indonesia?

ProSpace provides essential support for businesses looking to establish a presence in Indonesia:

Market research and opportunity assessment
Introduction to potential Indonesian business partners
Guidance on Indonesian business regulations and requirements
Company registration assistance and documentation
Local licensing support
Tax registration guidance
Banking setup assistance
Office space solutions (temporary and permanent)
Staff recruitment services
Legal and compliance advisory

Our comprehensive approach helps minimize the challenges of establishing your business in Indonesia.

What types of visas does ProSpace handle?

ProSpace specializes in processing various visa types for Indonesia and African countries:

Business visas (single and multiple entry)
Social-cultural visas
Temporary stay permits (VITAS)
Limited stay permits (ITAS)
Work permits (IMTA)
Dependent visas for family members
Student visas for educational purposes
Transit visas
Visitor visas
Special visa arrangements for government-sponsored delegations

Our visa services include application preparation, document verification, submission, and follow-up to ensure timely approval.

How long does it take to set up a business in Indonesia?

Setting up a business in Indonesia typically follows this timeline:

Company name reservation: 1-3 business days
Deed of Establishment preparation and notarization: 1-2 weeks
Ministry of Law and Human Rights approval: 1-2 weeks
Tax ID (NPWP) registration: 1 day to 1 week
Business license (NIB) through OSS system: 1-2 weeks
Industry-specific licenses: 1-4 weeks (varies by sector)
Bank account setup: 1-3 business days
Import/export licenses (if needed): 2-4 weeks

In total, businesses can expect approximately 6-10 weeks from start to operational status, depending on the business type and industry requirements.

Can ProSpace help with trademark registration?

Yes, ProSpace provides trademark registration assistance in Indonesia:

Trademark availability assessment
Application preparation and submission
Classification guidance for goods and services
Representation before trademark authorities
Application monitoring and follow-up
Certificate collection and delivery
Trademark renewal services
International trademark registration guidance
Trademark protection strategies
Intellectual property rights advisory

Our trademark services help protect your brand in the Indonesian market.

Does ProSpace offer office space solutions?

ProSpace offers flexible office solutions to support your business operations:

Virtual office services with local business address
Temporary meeting facilities
Short-term office rentals (daily/weekly/monthly)
Fully furnished private offices
Serviced offices with administrative support
Conference rooms with presentation equipment
Co-working spaces in strategic locations
Dedicated showrooms for product displays
Flexible lease terms with no long-term commitment
Prime locations in Jakarta, Surabaya, and other major business centers

Our office solutions allow you to establish a professional presence quickly without significant upfront investment.

How can ProSpace help with student visas?

ProSpace provides comprehensive support for student visa applications:

Documentation guidance and verification
University application assistance
Pre-registration support with educational institutions
Student visa application preparation
Interview preparation assistance
Application tracking and follow-up
Arrival coordination services
Accommodation arrangements
Cultural orientation programs
Visa extension support during study periods

Our educational services help students navigate the complexities of studying in Indonesia or African countries.

Learn more about Prospace's solutions and how we can help.

Prospace Indonesia Jaya helps you navigate the complexities of regulation in Indonesia. From businessestablishment to business expation, we are here to ensure you can focus on what matters most-your business growth.