Indonesia Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q1 2024 Update

The E-commerce market in Indonesia is expected to grow by 10.65% on annual basis to reach US$44.7 billion in 2024. Medium to long term growth story of E-commerce industry in Indonesia promises to be attractive. The E-commerce is expected to grow steadily over the forecast period, recording a CAGR of 9.04% during 2024-2028. The E-commerce Gross Merchandise Value in the country will increase from US$40.4 billion in 2023 to reach US$63.2 billion by 2028. The e-commerce market is poised to record strong growth over the medium term in Indonesia. Digital-savvy population, coupled with increasing consumption, is projected to aid market growth over the next three to four years. The growth potential is also driving investment from regional and global players in the Indonesian B2C e-commerce market. The publisher expects the trend to further continue in 2024.

The competitive landscape is also fast-growing in the market. This, coupled with regulatory activities, is creating mergers and acquisition opportunities in the Indonesian e-commerce sector. In the medium term, the publisher expects the usage of artificial intelligence to also gain momentum, as marketplaces seek to accelerate revenue growth through improved customer satisfaction. Overall, the publisher maintains a positive growth outlook for the e-commerce sector over the next three to four years in Indonesia.

Indonesian government banned e-commerce transactions on social media platforms in 2023

In an effort to protect offline merchants, small businesses, and marketplaces from predatory pricing strategies adopted by firms like TikTok, the Indonesian government banned e-commerce transactions on social media platforms in September 2023.

While social media platforms will be able to promote products on their platforms, they will not be able to conduct direct transactions. The move is set a major setback for TikTok, which launched TikTok Shop hoping to garner a significant share of the fast-growing e-commerce industry. Other social media platforms like Meta will be less impacted, as they have been moving away from a direct selling strategy over the last 12 months.

Additionally, the recently passed regulation mandates that online shopping platforms within the country must clearly state a minimum price of US$100 for certain items bought directly from international sources.

Indonesia acquires GoTo to evade the regulatory ban on social commerce selling in Indonesia

TikTok announced a billion-dollar investment in the Southeast Asian market, mostly in Indonesia, over the next four years in 2023. The investment is part of the firm’s strategy to grow its e-commerce platform TikTok Shop in the region. The regulatory ban, however, resulted in a big blow for TikTok. Consequently, to evade regulations, TikTok entered into an acquisition deal with GoTo.

• TikTok, in December 2023, announced that it is investing US$1.5 billion in GoTo, which will enable TikTok to resume its online shop in the Indonesian market. GoTo is a popular online shopping platform in Indonesia, while TikTok has 125 million users in the country, making it the second-largest market for the Chinese firm after the United States. This deal is, therefore, expected to become a major threat to other e-commerce marketplaces like Shoppe and Lazada over the medium term in the Indonesian market.

Meta, in response to the regulatory ban, has applied for e-commerce licenses in Indonesia to revive commerce activities on the various Meta-owned platforms. Other firms, including YouTube, are also expected to adopt a similar strategy to tap into the Indonesian e-commerce market.

Digitalization and young generation shoppers to drive e-commerce revenue in Indonesia in 2024

An increasing number of small businesses are embracing digitalization to expand their business and drive sales and revenue growth in the Indonesian market. The shift in strategy comes at a time when more and more shoppers are flocking towards online channels to make their purchases. Ever since the pandemic, Indonesians have been increasingly using online marketplaces like GoTo and Shoppe to buy products. The trend has been specifically higher among young generation shoppers, including Gen Z and millennial consumers.

As a result of this, consumer product companies such as MeToo are launching their products on e-commerce marketplaces to make their mark in Indonesia. In less than two years, MeToo reported sales exceeding RMB 100 million. The sizable sales numbers have been driven by its mouthwash products, which have been popularized by social media platforms like TikTok. More such smaller brands are projected to embrace digital marketplaces to drive sales and revenue growth in 2024. This will support the industry growth over the next three to four years in Indonesia.

This report provides a detailed data centric analysis of E-commerce market dynamics, covering over 100 KPIs in Indonesia. It details market opportunity across key B2C verticals - Retail Shopping, Travel & Hospitality, Online Food Service, Media and Entertainment, Healthcare and Wellness, and Technology Products and Services. It provides market share by key players across key verticals along with sales channels (Platform to Consumer, Direct to Consumer, Consumer to Consumer). In addition, it provides spending pattern by payment instruments along with a snapshot of consumer behaviour in Indonesia.

The report also covers niche trends such as market size by live streaming engagement model and cross border purchases. It also covers ecommerce spend share by operating systems, device (mobile vs desktop) and cities.

In addition, to detailed data-centric analysis, this report provides analyst commentary on key trends, drivers, strategies, and innovations in the E-commerce industry in Indonesia.

Scope

This report provides a detailed data-driven look at the Indonesia Ecommerce industry, covering various segments and highlighting areas of interest across the verticals in the industry. In addition, it provides a comprehensive understanding of market dynamics and future forecast.

Indonesia Ecommerce Market Size and Future Growth Dynamics

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Gross Merchandise Volume Trend Analysis

Indonesia User Statistics and Ratios of Key Performance Indicators

• User Statistics
• Card Abandonment Rate and Product Return Rate
• Ecommerce Per Capita and GDP Per Capita
• GDP Per Capita Trend Analysis

Indonesia Ecommerce Market Share by Key Players

• Indonesia Retail Shopping Ecommerce Market Share by Key Players
• Indonesia Travel Ecommerce Market Share by Key Players
• Indonesia Food Service Ecommerce Market Share by Key Players

Indonesia Ecommerce Market Size and Forecast by Ecommerce Segments (Gross Merchandise Value Trend Analysis

• Retail Shopping (breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
• Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
• Online Food Service (breakdown by aggregators, direct to consumer)
• Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
• Healthcare and Wellness
• Technology Products and Services
• Other segments

Indonesia Ecommerce Market Size and Forecast by Retail Shopping Sales Channel

• Platform to Consumer
• Direct to Consumer
• Consumer to Consumer

Indonesia Ecommerce Market Share by Travel and Hospitality Sales Channel

• Market Share by Travel and Hospitality Sales Channel
• Aggregator App - Gross Merchandise Value Trend Analysis
• Direct to Consumer - Gross Merchandise Value Trend Analysis

Indonesia Ecommerce Market Size and Forecast by Online Food Service Sales Channel

• Aggregator App
• Direct to Consumer

Indonesia Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2019-2028)

• Website Based
• Live Streaming

Indonesia Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis

• Cross Border
• Domestic

Indonesia Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis

• Mobile
• Desktop

Indonesia Ecommerce Market Size and Forecast by Operating System

• iOS/macOS
• Android
• Other Operating Systems

Indonesia Ecommerce Market Size and Forecast by City

• Tier 1
• Tier 2
• Tier 3

Indonesia Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2019-2028)

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Cash
• Other Digital Payment

Indonesia Ecommerce Consumer Demographics

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

Reasons to buy

• In-depth Understanding of Ecommerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
• Insights into Opportunity by Ecommerce Categories: Get market dynamics by sales channel to assess emerging opportunities across various segments.
• Detailed analysis of market share by key players across key Ecommerce verticals.
• Insights into Opportunities across key Ecommerce verticals: Retail shopping, travel & hospitality, online food service, media and entertainment, healthcare and wellness, and technology products & services.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate an Ecommerce strategy; assess market-specific key trends, drivers, and risks in the Ecommerce industry.
• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Ecommerce KPIs, including spend by age, gender, and income level.