Insights into the growth of Indonesia ecommerce profiling payment methods, target audiences, marketing, social media, economy and logistics
Economy
Indonesia is home to 272.25 million people with a total GDP of US$1.1 trillion. GDP per capita is currently US$4,135. Indonesia is expected to show a high CAGR of over 7.4% between 2015 and 2021.
Check out more exciting markets in Southeast Asia – Malaysia, Thailand, Vietnam.
Digital User Insights
There are currently 158 million ecommerce users in Indonesia, with an additional 63 million users to be shopping online by 2021. These 221 million ecommerce users will represent 77% of the total population. The average user spends US$240 online, which will grow to US$254 by 2025.
Product Categories
Total ecommerce revenue across all product categories is US$38 billion and expected to reach US$56 billion by 2025. Fashion is currently the leading product category, accounting for US$12.5 billion market share. Electronics and Media is second, accounting for US$8 billion.
By 2025, fashion will still lead, valued at US$18 billion. Electronics and Media will also grow, reaching US$11.7 billion.
Logistics
In 2018, Indonesia was ranked 46th in the World Bank Logistics ranking. 55% of Indonesia’s population reside in urban areas.
Preferred Online Payments
In 2020, online payment methods such as PayPal and Amazon Pay accounted for 50% of online purchases. 45% of Indonesian online shoppers paid by debit card, with customers also paying by cash on delivery (44%) and direct debit (29%). Credit cards accounted for 27% of payments.
Where does Indonesia buy from?
Indonesia imports mostly from China ($45 billion), Singapore ($19.8 billion), Japan ($13.9 billion), Thailand ($8.75 billion), and United States ($7.91 billion).
Internet and Device Usage
Internet penetration in Indonesia is currently at 76%, and should reach 89% by 2025. Smartphone penetration is also at 76% and is projected to grow to 89% by 2025.
Indonesian shoppers use their mobile devices constantly and mcommerce is growing at a compound annual rate of 45.2% to 2021 with sales anticipated to be worth US$31.5 billion through this channel.
Marketing
Total Marketing spend in Indonesia has risen in recent years, with advertisers investing more in all platforms reaching US$3.46 billion in 2020.
Digital advertising accounts for almost a third (27%) of this.
Social Media
Indonesia’s Social Media Penetration is 35% in 2021, expected to reach 37% by 2023. Facebook, YouTube, WhatsApp and Instagram are the leading social networks.
For more market insights, check out the ESW series of blogs covering a range of emerging ecommerce markets.
*Insights derived from ESW data, Statista, WorldBank, OECD and other industry sources.
