Four key findings are highlighted in the report: 1. One of Indonesia's online marketplaces, Blibli, experienced an increased number of registered merchants by 90% in April 2020 compared to the previous month. SIRCLO has no obligation to update these materials and makes no representation or warranty and expressly disclaims any liability with respect thereto. The results were further analyzed with supporting desk research and SIRCLO’s internal data to provide an in-depth discussion on the current state of e-commerce, as well as the effective strategy for businesses to move forward.In this article, SIRCLO lays out 3 main points of discussion: Key Growth Drivers of the Digital Economy: E-Commerce as Key Sector. On a regular basis, iPrice Group releases insights on topics pertaining to e-commerce, startups, and others. Navigating Indonesia’s E-Commerce: COVID-19 Impact & The Rise of Social Commerce. The purpose of this regulation is to enhance the governance of the Internet and electronic-based trading or e-commerce, as well as to provide higher certainty in Indonesia. Not only is the pandemic expected to widen e-commerce’s pool of consumers, it has intrigued about 40% of new users to want to keep using the platform even when the pandemic is over.14. 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. The Growth Period from 2012 to 2019. The Jakarta Post’s Eisya A. Eloksari interviewed e-commerce platform Lazada Group and Lazada Indonesia CEO Chun Li via e-mail on Nov. 16 to discuss the company’s business amid the … With Indonesia’s high digital penetration rate and its growing e-commerce industry bringing along new trends over time, it becomes more urgent for businesses to create a truly seamless experience for their consumers. Peta E-commerce Indonesia ini tidak melibatkan e-commerce dengan kategori Travel/Tiket, Penyewaan, Asuransi, Investasi, Pengantar Makanan, Kupon & Diskon, serta classified ads. According to Google and Temasek Report, the Indonesia digital economic growth set to reach US$100 billion in the next six years, thanks to penetrations from e-commerce, ride-hailing, online travel, and online media. With its consumers increasingly gravitating towards online consumption, it is not inconceivable that it might one day become the region’s leader in e-commerce and a priority destination for digital innovation. With the issuance of GR 80, Indonesia now has a specific e-commerce regulation in place to govern the rapid growth of e-commerce practice in Indonesia. When reviewed annually, Indonesia’s digital economy has grown almost fivefold from US$8 billion in 2015 to US$40 billion in 2019. However, those who still maintain in-house quarantine would still go for the safer option; shopping through e-commerce with less human contact, digital payments, and front-door delivery. SIRCLO’s survey results indicate that digital wallets (e.g., OVO and GoPay) are gaining popularity as the top payment method among Indonesian online shoppers who participated in the survey. E-Commerce in Indonesia The online shopping boom cannot be separated from the active role of e-commerce players offering a solution for people who want to save money and time. Perlahan, belanja konvensional berpindah menjadi berbelanja yang lebih modern Firstly, social media platforms have a low entry barrier that eases the process for businesses in setting up their own online store.22 In addition to that speedy factor, social commerce offers faster turnaround of money compared to online marketplaces that would require the seller to wait for 5-8 days until the customer receives the item before earning their money.23 In contrast, transactions through social media platforms are done directly and individually, hence cutting the turnaround time to be more immediate for sellers. According to e-conomy SEA 2018 report released by Google - Temasek in 2018, from the total business value of Southeast Asia e-commerce industry had reached US$23.2 billion, while Indonesia achieved US$12.2 billion or surpasses second and third positions occupied by Thailand and Vietnam with the valuation of US$2-3 billion. While the two categories encompass the primary needs that are in high pursuit, other categories such as Women’s and Men’s Fashion goods experienced 4% and 16% decrease in transactions respectively.18The checking out experience through e-commerce platforms have also faced a shift in preference. When looking at the situation in the long run, online and offline commerce are not bound to replace one another. Your email address will not be published. Indonesia’s digital economy has been one of the most prominent growing markets worldwide. Any person inquisitive enough to know local settings are welcome. If you continue to use this site we will assume that you are happy with it. The striking growth of Indonesia’s e-commerce sector has made it one of the fastest-growing markets in the world. Gazing forward, the rise in chat commerce would potentially push companies to provide cutting-edge customer service capabilities further beyond. Regardless of the chosen payment method, e-commerce transactions overcame a notable increase in March 2020, reported by the Indonesian Central Bank. For more detailed insights of the above analysis, click the button below. iPrice brings Indonesia shoppers the latest deals for various popular products, such as Smartphone (Xiomi, Oppo and Samsung), Sim card from Smartfren, cosmetics from Oriflame, gifts like photo frames, toys, Gemscool vouchers and Gramedia books. The State of Indonesia's E-Commerce within COVID-19 & Rise of Social Commerce: An Overview, https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.pdf, https://www.bps.go.id/publication/2019/12/02/6799f23db22e9bdcf52c8e03/statistik-telekomunikasi-indonesia-2018.html, https://techno.okezone.com/read/2020/02/06/207/2164410/satelit-indonesia-raya-ratakan-akses-internet-ke-seluruh-indonesia#:~:text=Satelit%20Indonesia%20Raya%20(Satria)%20merupakan,tidak%20dapat%20akses%20internet%20cepat, https://alvara-strategic.com/wp-content/uploads/2019/07/PRESS-CON-ENGLISH-E-COMMERCE-REPORT.pdf, https://www.mckinsey.com/~/media/McKinsey/Locations/Asia/Indonesia/Our%20Insights/Unlocking%20Indonesias%20digital%20opportunity/Unlocking_Indonesias_digital_opportunity.ashx, https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Asia%20Pacific/The%20digital%20archipelago%20How%20online%20commerce%20is%20driving%20Indonesias%20economic%20development/FINAL_The-digital-archipelago-How-online-commerce-is-driving-Indonesias-economic-development.ashx, https://image-src.bcg.com/Images/Asias_Next_Big_Opportunity_Mar_2013_tcm9-96710.pdf, https://www.worldbank.org/en/country/indonesia/publication/aspiring-indonesia-expanding-the-middle-class, https://redseer.com/reports/indonesia-ecommerce-metamorphosis-in-a-post-covid-world/, https://www.thejakartapost.com/news/2020/05/20/covid-19-helps-create-new-normal-in-online-shopping-survey.html, https://katadata.co.id/berita/2020/04/29/penjual-di-blibli-tokopedia-dan-lazada-meningkat-efek-pandemi-corona, https://nasional.kontan.co.id/news/bi-catat-jumlah-transaksi-e-commerce-selama-wabah-corona-tumbuh-signifikan, https://datareportal.com/reports/digital-2020-indonesia, https://datareportal.com/reports/digital-2016-indonesia, https://www.paypalobjects.com/digitalassets/c/website/marketing/global/stories/images/paypal-asia-social-commerce-report.pdf, https://paxel.co/id/news-and-promos/detail/2020-05-05/paxel-buy-and-send-insights-ukm-lebih-suka-berjualan-di-media-sosial, https://www.indozone.id/tech/9DsW06/facebook-menganalisis-tren-conversational-commerce-ini-hasilnya/read-all, http://www.growingscience.com/msl/Vol10/msl_2019_353.pdf, Online Shopping Festivals: Driving E-commerce Growth Beyond Java, On COVID-19: Sanitization Product Sales Surge in Indonesia's E-Commerce, Food & Beverage Demand in Indonesian E-Commerce Soars Amid COVID-19. PPRO Country Insight Indonesia PPRO is excited to present its new edition of Country Insights. Furthermore, creating an interconnected environment for a seamless consumer experience would bring more value to the business itself. Spending patterns 11 2. Between 2016 to 2020, the Indonesian government’s spending on Information and Communication Technology (ICT) infrastructure has continued to increase.2 The budget has been mainly used to develop the Palapa Ring and Satria Project, continuously creating a sustainable and more widespread infrastructure for Indonesia’s digital interconnectivity. The driving forces in Indonesia’s retail landscape 4 Deloitte Consumer Insights: Indonesia 7 1. Both parties have significantly contributed to higher digital penetration that has changed the ways of interacting socially, obtaining information, and consuming products and services. Copyright © 2020 ASEAN UP - All rights reserved. Indonesia’s e-commerce gross GMV grew strongly in the second quarter this year, reaching $10 billion and driven by people switching to online platforms to buy … In 2017 alone, the social commerce sector accounted for 40% of the Indonesian e-commerce market, with a total Gross Merchandise Volume (GMV) of US$3 billion.21 In the perspective of the sellers, social commerce has key advantages that can offer them with more opportunities and empowerment for their business operations. As one data point, Goldman Sachs estimates that Shopee, the region’s largest e-commerce platform, saw near doubling in GMB in Indonesia … By delivering great customer journeys on any channels that businesses tap in, businesses can give consistent experience and value for their consumers.The COVID-19 pandemic has evidently changed the dynamic of commerce. Being omnipresent plays a crucial role in helping businesses remain competitive and drive new revenues. Jakarta.E-commerce accounted for 8 percent of total retail sales in Indonesia last year, on course to reach 18 percent by 2023, fueled by changing behavior among tech-savvy customers who are willing to spend more for convenience, according to a recent study by … Based on a research by RedSeer, the pandemic is expected to onboard about 12 million new e-commerce users.13 Under normal circumstances, this massive growth could have taken 1.5 to 2 years. Indonesians are gradually on its way to become digitally-adept consumers and the omnichannel strategy has been effective in helping businesses adapt to the progress. The e-competition is growing fiercer, with companies striving to provide a better e-shopping experience. Communication channels 15 5. 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. Such information has not been generated or independently verified by SIRCLO and is inherently uncertain and subject to change. According to a survey conducted by Rakuten Insight in Indonesia, 70 percent of the respondents aged 45 to 54 stated that they purchased dry food items during the … Digital User Insights There are currently 31.65 million eCommerce users in Indonesia, with an additional 22.24 million users expected to be shopping online by 2022. Kami juga hanya memasukan e-commerce yang memiliki jumlah minimal 100.000 pengunjung bulanan atau minimal 100.000 pengikut di akun media sosialnya. Embracing bricks and clicks in Indonesia Foreword Indonesia is often described as Southeast Asia’s most populous economy. Addressing customers needs is the key. The convenience of online shopping attracts people to use it; and alongside with it, e-payment grows. Salah satu bagian yang mencuri perhatian saya adalah bagian “Spending behaviour” yang memperlihatkan sebuah fenomena unik e-commerce di Indonesia. It gathers the most popular e-commerce players, platforms as well as services providers in the Indonesian e-commerce market, created by ecommerceiq. Jakarta, CNN Indonesia — Menurut riset berjudul ‘Navigating Market Opportunities in Indonesia’s E-Commerce’ dari Sirclo, penjualan ritel e-commerce Indonesia diperkirakan mencapai US$15 miliar (setara Rp210 triliun) pada 2018 dan akan meningkat lebih dari empat kali lipat pada tahun 2022, menyentuh angka US$65 miliar (setara Rp910 triliun). According to a report by Google & Temasek, there are more than 350 million internet users in Southeast Asia (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam).. More importantly, more than 90% of Southeast Asians connects to the internet primarily through mobile devices. Indonesia telah menjadi pasar terbesar ¬e-commerce di Asia Tenggara. This event is presented by local to provide you local insight and challenges. According to a survey conducted by Rakuten Insight in Indonesia, 49 percent of the respondents purchased food and grocery items online as of May 2020. 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. Instead, both will go hand-in-hand as options for consumers to choose from.Therefore, once Indonesian consumers start utilizing both online and offline platforms according to their needs, it is becoming more crucial for a business’ competitiveness to become omnipresent in multiple platforms; web stores, marketplaces, and social commerce. 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. Congestion is the main reason why residents in densely populated areas such as Jakarta, Bandung and Surabaya choose to shop in online stores rather than visiting offline outlets. Eventually, both business environments can be interconnected, allowing businesses to create a seamless customer journey. Buying behaviour 13 3. In contrast, the more conventional methods of payment, such as debit or credit card, are plunging considerably. Required fields are marked *. Mobile applications today play a vital role in the development of e-commerce. We use cookies to ensure that we give you the best experience on our website. Namun, jka dibandingkan dengan total perdagangan retail, penjualan e-commerce di Indonesia hanya menyumbangkan 0,07 persen. These projects are expected to provide remote locations with broadband internet access and eventually give the whole country access to the digital world.3 The enthusiasm for digital interconnectivity is also observable among Indonesian people, as indicated by the country’s mobile phone adoption rate which has increased from 51.5% of the total population (in 2014) to 62.4% (in 2018).4 In particular, the enthusiasm is very much seen among Indonesian digital natives (born after 1990), who have been actively adopting digital technologies and spending more time on the internet.5 Apart from the low price point of smartphones nowadays,6 Indonesia’s mobile data cost being among the most affordable globally7 also plays a part in enabling mobile internet access for more people. Indonesia e-commerce GMB alone likely topped 21 billion U.S. dollars last year, suggesting that it is over half of Southeast Asia’s e-commerce business. With the close partnership between e-wallets and e-commerce providers the usage of e-wallets in Indonesia are expected to increase. A leader of e-commerce in Indonesia, also present in Thailand, the Philippines, Singapore, Malaysia and Vietnam, Lazada is an online department store and marketplace for retailers to sell their own products. While cities in Indonesia enter an “adopting new habits” phase, brick-and-mortar stores are allowed to continue their offline operations for the time being in an effort to revive the country’s economy. Buying channels 17 6. It also examines evolving trends related to consumer channel preference, including the potential for growth in e-commerce and in product categories, and looks at how companies should be thinking ahead to benefit from underlying shifts in the market. Indonesians spent US$20.3 billion online in 2018, an increase of US$3.3 billion – or 20 percent – compared to 2017. Over the past years, various omnichannel technologies have been developed, providing a fully integrated online system that manages multiple essential aspects of a business; sales, payment, logistics, fulfillment, warehousing operations, back-office, customer loyalty. Brand preferences 14 4. At this rate, Indonesia's digital economy has been forecasted to reach US$133 billion by 2025.1 The growth drivers behind the thriving economy can be observed among the people and the government. Within that overall figure, US$9.5 billion went to online purchases of consumer goods like fashion, electronics, and groceries, while US$9.4 billion went to online travel purchases. Indonesia’s business to consumer e-commerce market is worth $13.6 billion. Both consumers and businesses have turned to e-commerce platforms as their alternative channels for continuity in these uncertain times. perusahaan e-commerce Indonesia Kamu Harus Tahu Perusahaan E-Commerce di Indonesia Insight banyak perusahaan e-commerce Indonesia yang semakin memperbaiki kualitas marketplacenya dari hari kehari. 16 And with this growth set to continue, the world’s largest archipelago also has the highest e-commerce growth prediction out of … In the past few years, this space of interaction has been used by sellers and businesses to have direct engagement with their consumers leading to transactions, making it a new e-commerce platform made available. Includes rich insights into the stories behind the numbers, as well as valuable context to digital behaviours in Indonesia in late 2011. F&B and Health and Beauty) have seen a considerable increase, while purchases on tertiary products have declined. Sea's e-commerce arm Shopee is the most visited online shopping platform in Indonesia, and the archipelago is the biggest market for its digital … And this is something we knew could best be achieved by leveraging on social interactions. Insights and trends of e-commerce in Indonesia [market analysis] 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. The direct engagement provided by social media is even proven to be favorable as online marketplaces such as Shopee and Tokopedia have now provided a similar Chat feature to replicate the conversational experience. Ecommerce in Indonesia. 14 While accounting for just 0.6 percent of its overall retail market, 15 Indonesia’s online shopping sector has expanded at a prodigious rate, growing by over a third in both 2016 and 2017. Moving forward. All the data, charts, and insights you need to understand internet, social media, mobile, and e-commerce use in Indonesia in December 2011. In 2020, the number of social media users in Indonesia have reached 160 million users.20 Since its rise in the early 2000s, social media has been providing its users with a state-of-the-art platform for direct interaction with one another. Consumers’ trust towards sellers and the quality of products sold on social media platforms are becoming relatively high with a level of 82%, among the frequent shoppers in Indonesia surveyed by SIRCLO. 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. Meanwhile, purchase value on daily necessities like Food and Drinks still increased slightly.17 SIRCLO’s survey in comparison to the previous year further indicated that the Health and Beauty category reported the highest increase by 30% with the Food and Drinks category following after with a 17% increase. In collaboration with Ravenry, SIRCLO has carried out extensive market research in June 2020 involving 2,987 respondents. Integrating Philippine e-commerce in ASEAN, Internet and digital landscape in Indonesia, Philippines tech startup ecosystem [list-tips], Mobile app market in Indonesia [market analysis]. Here you will find detailed information about the country of your choice, the local payment culture and its specific e-commerce landscape! Bricks-and-mortar businesses, facing unequal tax burdens, will pressure the government for a level playing field. The Indonesian MAC consumption has now comprised half of the country’s household consumption11 with an average 19.31% of their household consumption was spent on e-commerce purchases in 2020.12 Under the health constraints of the COVID-19 pandemic, even more household consumption by ranging consumers is being facilitated through e-commerce, as it provides very little human contact in its overall transaction process. Furthermore, creating an interconnected environment for a seamless consumer experience would bring more value to the business itself.Being a part of a fast-paced industry demands businesses to swiftly adapt as well, so if your business hasn't, SIRCLO is here to be your trusted e-commerce solution partner. 2. e-commerce 27 looking ahead 29 Indonesia ’ s business to consumer e-commerce market, created by ecommerceiq these... March 2020, reported by the Indonesian Central Bank you e-commerce guys looking for to! 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