Indonesia’s E-Commerce Sector Number One in South East Asia

Jan 2021

According to research undertaken by Bank DBS Indonesia, the country has the highest rate of e-commerce in South East Asia. Since 2019, 90% of internet users in Indonesia have made purchases via e-commerce platforms. Since the pandemic, online shopping has increased by about 14% while conventional shopping fell dramatically by 24%. The Gross Market Value (GMV) of Indonesia’s e-commerce stood at USD 21 billion in 2019 and is expected to hit USD 40 billion by 2022.

E-commerce platforms have also been active in tapping into the country’s sharia economy, valued at USD 114 billion, by launching sharia divisions of their businesses. For example, Tokopedia, the largest e-commerce platform in Indonesia, developed Tokopedia Salam, where customers can purchase Halal products, Muslim fashion, Sharia Finance products, Umrah (Minor Haj) trip packages and other articles and services.

The growth of e-commerce is contributing to the development of the logistics sector. Foreign and international investors and developers, such as GIC, LOGOS and ESR, have ventured into Indonesia. New supply chain management providers have sprung up to help online platforms organize their businesses. It is expected that e-commerce platforms will be needing more warehouses with advanced IT facilities that enable more efficient handling and management of goods.

(Sources: DBS; Jakarta Post)

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