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E-commerce in Indonesia - statistics & Facts

With a total population of more than 270 million, Indonesia is the most populated country in Southeast Asia. The country consists of over 17 thousand islands, which further complicates communication between different regions. The internet therefore plays an important role in promoting economic and social interests. Not surprisingly, internet penetration has been on the rise for a decade now and is not expected to slow down. As a result of difficulties in building a fixed-line network in an archipelago, as well as a massive enhancement of the mobile network, smartphones are the main device to access the internet. The nationwide trend towards online communication offers opportunities in many digital areas, including e-commerce.

Indonesia's e-commerce market landscape

E-commerce could be key to not only giving citizens in remote areas the opportunity to benefit from a wider range of consumer goods and services, but also to increase the pool of potential customers for businesses. Providing platforms to improve online retailing is therefore one of the most sought-after business opportunities in the country. Many global e-commerce leaders are currently fighting for the largest market share. In fact, even though the signs of a successful online market have been positive for a long time, the industry is still at an early stage of development. In 2020, the gross merchandise volume (GMV) of the e-commerce market amounted to around 32 billion U.S. dollars and was forecasted to reach about 83 billion U.S. dollars by 2025. The main reason for this development would be the increase in e-commerce users. Indonesia is expected to have almost 221 million people using e-commerce by 2025.

Tokopedia is currently the most popular online marketplace in Indonesia

Lazada, Tokopedia, Bukalapak, Blibli, Shoppee and JD.ID are currently the most popular e-commerce sites in Indonesia. They all offer a wide range of products and hope to take the market leader position in the near future. Their success has not not only been based on the ease of accessing the internet and their individual marketing strategies but also the creativity in coming up with new transport and payment opportunities. In terms of digital payment, Digital and mobile wallet accounted for the most preferred e-commerce payment in Indonesia, making up around 30 percent of all e-commerce payments in 2020.

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