Market Trends of Indonesia E-Services Industry
Online Education is Expected to Hold Significant Market Share
- Online learning gained substantial growth during and post-pandemic, primarily governed by the growth in several online learning platforms, coupled with advantages such as accessibility, flexibility, and affordability. In addition, the increase of online education in schools and colleges has revolutionized the education industry, leading to new online learning platforms and delivery methods. In addition, the growth in internet and smartphone penetration has emerged as a drive for the growing popularity of online learning in schools.
- Furthermore, with children growing accustomed to using technology from a younger age, everything is quickly becoming digitalized and is tailored to this new generation. When students are already familiar with watching YouTube videos or scrolling through news articles on their phones, having to sit and listen to a teacher in a classroom is something that they may struggle with. Their way of consuming information has changed. Therefore, sitting and learning from their device is perceived as a more convenient and appealing method of educating themselves.
- Moreover, the rise in the access to the devices would propel the growth of online education in the country. For instance, according to Statistics Indonesia, in 2023, approximately 72% of primary school students in Indonesia had access to mobile phones. In contrast, only around 5% of students had access to computers. Access to ICT among students in Indonesia increases as the education level gets higher. Similarly, in 2023, approximately 97% of senior high school students in Indonesia had access to mobile phones. In contrast, the share of students with access to computers was significantly lower at around 36%.
- Online education can also provide students with more opportunities by allowing them to study at an international institution without traveling or moving abroad. This learning method is also more cost-effective because it cuts out the need for the student to travel to attend classes or, in some cases, purchase textbooks. Younger students are also becoming more conscious about the environment. Therefore, studying online is perceived as a more economical way of learning. For example, by not having to travel to a classroom or gather countless handouts from lectures, students are contributing to helping the environment. This factor can carry a lot of weight for some students and can be their sole motivation for pursuing online classes.
- Moreover, in November 2023, The Friends Union for Energising Lives (FUEL), a non-profit organization, and Yayasan Mitra Mandiri Indonesia (YMMI) partnered with VFS Global to introduce an innovative future skills training initiative to empower 250 youth in Jakarta. VFS Global is the world’s largest outsourcing and technology services specialist for governments and diplomatic missions. FUEL claims that this collaboration signifies a joint dedication to providing youth with comprehensive training in English literacy, digital literacy, and specialized job-related skills, such as digital marketing, while also enhancing their communication abilities.
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Sumatra is Expected to Hold a Significant Share of the Market
- The nation has made digital transformation a primary priority, and it is progressing quickly as more businesses adopt formal strategies to aid in their initiatives. By offering the newest technology, the managed services providers in the nation greatly emphasize lowering security risks and improving operations for the end users. However, using outsourced services for an organization's IT resources can be an appealing way to significantly reduce costs, improve connectivity, and enhance the performance and uptime of applications and devices. Also, government regulations are rapidly encouraging the nation's traditional industries to embrace digital transformation and increase their usage of IT technologies. Therefore, they are increasing their demand for mobility services, fueling market expansion.
- According to Statistics Indonesia, in 2022, preliminary figures showed that the gross domestic product (GDP) from information and communications in Indonesia amounted to around USD 49.5 million. The GDP derived from information and communications in Indonesia has gradually increased since 2014. Such a rise in IT contribution toward the country's economy is expected to create an opportunity for the growth of the market studied over the forecast period.
- Automation is crucial for an online ticket booking system, as it can assist with several tasks, from sending regular reports to picking tickets for a particular member. A smart online booking system has the feature of smoothly reviewing and analyzing transaction-related data. For instance, businesses in Sumatra might want to assess each event’s sales performance and slice the data in many different ways. This can include cash versus credit card sales, discount impact, and sales per different price categories. This feature makes customer service and management easier for the platform provider, and one can expect positive experiences in every transaction.
- One of the main regions behind the growth of online dating services is the widespread use of smartphones and the convenience of mobile apps, which have been instrumental in the growth of online dating. Mobile platforms provide easy access to dating services and facilitate on-the-go interactions. As mobile technology advances and becomes even more integrated into people's lives, the usage of mobile dating apps is expected to grow further.
- The substantial growth in the popularity of online dating applications, such as Tinder Match Group, among young people is one of the significant factors that may propel the market growth during the forecast period. Social networking sites are now crucial in navigating and documenting romantic relationships among individuals, which further encourages the usage of online dating apps and portals. Moreover, the growing smartphone user base and rising internet penetration provide ample opportunities for market growth in the country.
