Indonesia is one of the largest and fastest-growing digital economies in the world – and the undisputed leader in Southeast Asia. World Bank forecasts see GDP growth projected to hold at 5.0% in 2026, rising to 5.2% in 2027. Digital infrastructure will be a key driver of growth. Aspirational spending and digital adoption are on the rise amongst Indonesian consumers even as the traditional middle class contracts – from 57.33 million people in 2019 to 47.85 million in 2024, per EBC research. In 2025, household consumption accounted for around 54% of GDP, which expanded 5.6% YoY in Q1 2026, driven by resilient domestic demand, early Ramadan spending, and expanded social programs. Smart home adoption is driven by a narrower but higher-earning urban consumer segment along with housing-developer bundling for new properties.
2026/09/25