Indonesia has the largest population in Southeast Asia, by far, and an e-commerce penetration that is still very low, making it one of the hottest e-commerce markets in the world. Attracting both global and local companies’ interests, Indonesia now has a fast-growing e-commerce scene poised to become a global powerhouse.

Still inferior to 1% of all sales in Indonesia, e-commerce is expected to expand in high double digits in the coming years in Indonesia. Though the market is not as mature as e-commerce in Malaysia or Singapore, the Indonesian population of more than 260 million, makes the absolute numbers of growth in the country vertiginous, with millions of new online shoppers every year.

Digital in Indonesia 2018
Numbers of Internet, social media and mobile users in Indonesia in 2018
The fast-growing Indonesian telecommunications infrastructure, its large population with growing internet connectivity, especially through mobile phones, will make Indonesia the leader of e-commerce in Southeast Asia in the very near future.

Highlights of the Indonesia e-commerce market
Overview of the Indonesian e-commerce actors
Providing an overview of the Indonesian e-commerce landscape, the following graphic regroups the different actors in each category. It gathers the most popular e-commerce players, platforms as well as services providers in the Indonesian e-commerce market, created by ecommerceiq.

Indonesia e-commerce landscape
Click to enlarge the landscape of e-commerce in Indonesia
Trends of the Indonesian e-commerce market
To go deeper into the trends that weigh on the market with data on the e-commerce shoppers’ profiles and behaviors, hot products, and categories, preferred e-payment methods, the following presentation details the dynamics that currently shape the market for years to come.

Indonesian e-commerce industry – summary
A. Overview of Indonesia retail industry – slide 2
Indonesia demographic overview – slide 3
Top 5 countries in 2016 global retail development index – slide 4
Share and growth rate of modern retail in Indonesia – slide 5
Spread of modern retail in Indonesia – slide 6
Total value of traditional retail channel transactions in Indonesia – slide 7
Types of goods for sale in Indonesia traditional retail – slide 8
B. E-commerce in Indonesia – slide 9
Indonesia digital landscape 2016 – slide 10
E-commerce development in Indonesia – slide 11
Basic diagram of e-commerce – slide 12
Types of products bought via e-commerce – slide 13
Use of on-demand service in Indonesia – slide 14
Shoppers’ likes and dislikes in online shopping – slide 15
C. Indonesia e-payment landscape – slide 16
Used electronic payment methods in Indonesia – slide 17
Landscape of mobile payment in Indonesia – slide 18
Usage behavior on each payment instrument – slide 21
D. E-commerce 2.0: the future is near – slide 22
Shifting customer behavior post-digital technology era – slide 23
E-commerce 2.0: O2O – slide 24
Case study #1: Matahari mall – slide 25
Case study #2: Amazon – slide 26
Case study #3: BenyBenka – slide 27
E. Conclusion – slide 28
Modern retail is stronger in urban areas, while traditional retail holds its presence in rural areas.
The convenience of online shopping attracts people to use it; and alongside with it, e-payment grows.
The e-competition is growing fiercer, with companies striving to provide a better e-shopping experience. Addressing customers needs is the key.
Presentation from May 2017 by Jeffrey Bahar

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