Xin Ou
Research expert covering Greater China
E-commerce in Indonesia - statistics & Facts
Valued at approximately 65 billion U.S. dollars, Indonesia’s e-commerce market is the largest in Southeast Asia, far outpacing other countries in the region. The global coronavirus pandemic became a catalyst for the rapid growth of the e-commerce market in the country. During this global health crisis, Indonesian consumers turned to e-commerce to get products and services. Many businesses also refocused their business operations online to stay afloat during this time. With the growing number of internet users and improved digital infrastructures, the outlook for the e-commerce market in Indonesia remains positive.
Shopee ID, Tokopedia, and Blibli are currently the most popular e-commerce platforms in Indonesia. Extensive product variety, competitive prices, and frequent discounts have bolstered their popularity among Indonesian consumers. In terms of digital payment, digital wallets were the most preferred e-commerce payment method in Indonesia, making up over 40 percent of all e-commerce payments in 2024.
Indonesia's e-commerce market landscape
E-commerce has expanded access to a wider range of goods and services for Indonesian consumers, including those in remote areas, while also increasing the customer base for businesses. Therefore, providing platforms to boost online retail is one of the most sought-after business opportunities in the country. Despite early signs of success, Indonesia’s e-commerce industry is still developing. However, the gross merchandise value (GMV) of the e-commerce market in Indonesia is forecast to reach approximately 150 billion U.S. dollars by 2030, highlighting its potential. A major driver of this growth is the increasing number of e-commerce users in Indonesia, expected to reach approximately 99 million by 2029.Shopee ID, Tokopedia, and Blibli are currently the most popular e-commerce platforms in Indonesia. Extensive product variety, competitive prices, and frequent discounts have bolstered their popularity among Indonesian consumers. In terms of digital payment, digital wallets were the most preferred e-commerce payment method in Indonesia, making up over 40 percent of all e-commerce payments in 2024.
What are the barriers to e-commerce adoption in Indonesia?
Although the market has great stability and potential, many barriers still slow down the adoption of e-commerce in Indonesia. A recent survey indicated that delayed or slow delivery, high shipping costs, and lack of product quality assurance were some of the main challenges when shopping online for many Indonesian consumers. In addition, there are also growing concerns regarding data privacy breaches and data protection policies among online shoppers in the country. While a great portion of consumers do not mind sharing basic personal information, many consumers are unaware of the personal information collected and kept when they shop online. Transparency from e-commerce companies and stricter cybersecurity laws are necessary to build trust between consumers and businesses. This will create a safe e-commerce environment and may accelerate the adoption of e-commerce in the country.
