By reducing entry obstacles and making scalability easy, the sector has enabled business owners to grow online and reach new customers. Over 10% of the 270 million people living in Indonesia are involved in online shopping. However, the penetration of the internet and a rise in income is expected to speed up the trend. In the upcoming three years, the country’s online e-commerce is estimated to have a value of 55-65 billion dollars. It will account for approximately 44 million shoppers. According to another report by Temasek and Google, the market will be worth 53 billion dollars by 2025.
Fast growing e-commerce market
The government has also recently made the decision to withdraw a regulation created to tax e-commerce transactions. This regulation was first announced in January. The estimated online population in Indonesia is 103 million, of which shoppers spend an average of 228 dollars. This makes the country one of the fastest growing in e-commerce (interest and revenue) globally. The country’s current market value is 7.2 billion dollars.
According to a report by Merchant Machine, Indonesia recorded a growth of 78% last year. In the market, the dominant spending sectors are clothing and travel. Especially in non-urban Indonesian areas, consumers enjoy a more affordable quality of life due to e-commerce.
Over 55% of the e-commerce spendings come from Jakarta. Here the market is more mature than other online retail regions within the country. In Jakarta, online spending is four times higher than in the rest of the island Java. Furthermore, it is a striking 10 times higher than the rest of the country.