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Although the national economy is dominated by tier 1 cities, we expect tier 2 and tier 3 cities to become more important as they outpace the growth of tier 1 cities and expand their share of the national GDP by 3 to 5 percent ($46 billion to $77 billion) by 2030. Despite their strengthening economic might, tier 2 and tier 3 cities are three to five years behind tier 1 cities when it comes to digital adoption. Our correlation is based on survey output: more than 80 percent of the population in tier 2 and 3 cities are digital laggards and the barriers that they reported from doing online activities. Much remains to be done before these cities catch up. However, we believe there will be a large prize as the tier 2 and tier 3 digital economy is expected to grow by about 5x by 2025. Investors and start-ups could also expect help from macro tailwinds.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 18:29:19.796+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ba34f9c1-627c-4b48-a00e-4aff3c94d1bc", "parentComponentId": null }, { "bbox": { "h": 0.35, "w": 0.72, "x": 0.25, "y": 0.08 }, "kind": "list", "text": "2020 was a rocky year for Indonesia with COVID-19 impacting key economic sectors. 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