By: Adibah Sarfaraz
Always wanted to venture internationally but still uncertain if you should make the huge leap? Try Indonesia!
Indonesia has a population of 270 million, being the third most populous nation in Asia, falling just behind China and India. There is an estimation of over 27 million people who prefer online shopping due to its convenience. And, the number is expected to increase to have almost 44 million online shoppers within the next three years. According to the Google-Temasek report, the market may be worth US$53 billion by 2025.
The Promising Opportunity
Online sales in Indonesia is only around 4% of Indonesia’s total retail market, with around US$11 billion sales in 2018. And, it is expected to grow and exceed offline retail. The country is also one of the fastest growing e-commerce market in the Asia Pacific region, with a sales growth of 32.9%.
The Existing Indonesia Market
A factor of the rising of e-commerce in Indonesia is due to the increase of smartphone users, causing them to be accessible to the Internet. Almost 75% of Indonesia’s online shoppers use smartphones, surpassing Malaysia (62%) and US (39%).
Besides, e-wallets and mobile online banking also plays a huge role in boosting Indonesia e-commerce. However, 67% of the population still doesn’t own a bank account. So, it’s always encourage to provide a cash-on-delivery option.
As shown above, the three largest Southeast Asian e-commerce platforms; Tokopedia, Shopee and Bukalapak show a significant number of visits from online users in Indonesia. It also means the Internet users in Indonesia is well-comfortable with e-commerce and online purchases.
What should you do with this opportunity?
You’ve seen the potential, now here’s your chance to hop on the e-commerce train in Indonesia to expand your business! As the market is expected to develop along the upcoming years, e-commerce may be one of the main aspects of Indonesia’s economy in the future.
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