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Retail trade in Indonesia - statistics & facts

The Indonesian retail sector has been rapidly growing in Asia, contributing around 13 percent to the gross domestic product (GDP) in the country. Owing to its relatively large population of more than 270 million, the growing middle class with higher purchasing power, and millennials with bigger spending habits, Indonesia holds significant potential for the retail market. However, the coronavirus (COVID-19) pandemic has negatively affected the market, which resulted in the revenue decrease of its offline retail distribution channels.

Retail landscape

The Indonesian retail market is highly fragmented, with local players dominating the market. Key market players such as PT Matahari Putra Prima Tbk, operating seven retail chain brands throughout the country, and leaders in the convenience store market, Alfamart and Indomaret, have been accommodating the mass market segment mainly through physical distribution channels. Apart from the prominence of physical retail channels, online marketplaces have successfully penetrated the country’s retail market over the last decade. With the number of e-commerce users predicted to reach 221 million in 2025, online distribution channels may set a strong foothold in the country’s retail market. Besides, the retail e-commerce revenue is set to surpass a sixfold increase in 2025 from 8.5 billion U.S. dollars in 2017. As of recent findings, Tokopedia, Bukalapak, and Blibli were the most popular domestic e-commerce sites in the country.

Impact of the COVID-19 pandemic

Due to social distancing restrictions and other health standard protocols, there was a decrease in retail distribution through physical channels such as traditional and modern trade. This in turn caused a significant decline in their sales revenue. However, the coronavirus (COVID-19) pandemic has shifted the retail distribution channel structure, with online shopping channels showing growth in popularity among Indonesian consumers. Convenience and avoiding the spread of COVID-19 were cited as some of the reasons to shop online. The coronavirus (COVID-19) pandemic has also resulted in a change in the consumer shopping mindset. Out of concern for the economic impact of the pandemic, many Indonesian consumers became more mindful of how they spent their money and are increasingly trying to find ways to cut their spending.

Interesting statistics

In the following 6 chapters, you will quickly find the 33 most important statistics relating to "Retail trade in Indonesia".


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