ArticlesTechnologyHow E-Commerce is Growing in Indonesia

Ratri AdityaraniAugust 15, 2016

The daily innovation in technology has a big impact in the online retail business, in which it makes e-commerce was emerging rapidly in the last decade. Today we can see the growth of e-commerce in Indonesia to compete with other Asian countries such as Singapore, South Korea, and even China.

The massive use of smartphones in Indonesia allows users to perform various trade transactions anywhere, anytime. That is why the retail business should begin to move forward toward online in order to survive. Developing offline business is good, but the development of technology forces us to move forward.

The survey conducted by the Wall Street Journal said that 100 million consumers in Southeast Asia have made a digital purchase. While 150 million have researched products or engaged with sellers online. This shows the millennials behaviour in South East Asia that has been driven by the growth of mobile app development.


By 2018, Asian retail sales are expected to amount to over US$10 trillion. This is almost twice than North America. Therefore the marketers see that online sales in Asia Pacific are expected to reach US$1.3 trillion by 2019.

Some e-commerce in Indonesia are already got the big hit. We can see Tokopedia which has around US$250 million valuation. Bukalapak also has the company’s valuation to US$7 million. The success of these two e-commerce has driven local startups to compete and join the bandwagon of e-commerce business. The spirit is in line with hoping to see the billion-dollar success story like the unicorn startups. This movement set the future of Indonesian economy, which grow healthier in line with public’s need for better living experience.

In Indonesia, we can see the improvement in the public market service. For example, Pasar Komoditi Nasional (Paskomnas). As one of the biggest staple foods distributors in the country, it is now has one step ahead. They built an e-commerce website for national commodity market, Paskomnas provides basic staple foods for greater Jakarta area and some big cities in Indonesia. Soon their service will be available for every cities in the country.

“Prediction says that this e-commerce boom will still last for few years ahead.”

While Mumu also launched its app for helping Indonesian shopping for groceries. This app enables its user to shop online and have the groceries delivered right to the consumer’s address. It saves a lot of time and energy to do grocery shopping. Especially for busy workers in big cities like Jakarta, Bandung or Surabaya.

And we can see many more e-commerce in Indonesia. We are getting along with the growth of local app developers and young generation’s interest in technology. Prediction says that this e-commerce boom will still last for few years ahead. Considering the economic growth in Indonesia, we got high hope. We believe that the competition in retail industries will be more exciting in the upcoming years. So, are you ready to battle with your e-commerce?

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