INDONESIA E-COMMERCE MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2024 - 2029)

The Report Covers Indonesia's E-Commerce Market Size and is Segmented by B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home, and Others (Toys, DIY, Media, and Others)) and B2B ECommerce. The Market Sizes and Forecasts are in Terms of Value (USD) for all the Above Segments.

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Indonesia E-commerce Market Size

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Indonesia E-commerce Market  Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 81.80 Billion
Market Size (2029) USD 168.10 Billion
CAGR (2024 - 2029) 15.50 %
Market Concentration Medium

Major Players

Indonesia E-commerce Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Indonesia E-commerce Market Analysis

The Indonesia E-commerce Market size is estimated at USD 81.80 billion in 2024, and is expected to reach USD 168.10 billion by 2029, growing at a CAGR of 15.5% during the forecast period (2024-2029).

The Indonesia Ecommerce growth is driven by the growing fashion industry and internet and smartphone penetration, among others. 

A key driver of ecommerce growth in Indonesia is the convenience factor offered by online shopping and e-commerce platforms' continuous focus on improving customers' overall shopping experience on online platforms. Shoppers nationwide are now turning to e-commerce platforms to fulfill their diverse needs, from electronics and clothing to groceries. Such factors have led to substantial growth in online shoppers across the country over the past few years, significantly contributing to the Indonesia e-commerce market size. 

In addition, high smartphone usage and internet penetration stimulate the growth of the indonesia e commerce industry in the country. The growing internet usage at affordable rates and the rise of smartphones has led to higher access to online shopping in the country. High mobile penetration in Indonesia makes it more convenient for consumers to shop for a wide variety of products online, thereby positively influencing the Indonesia ecommerce market share. 

Moreover, governments and central banks are eagerly facilitating digital payment systems in the country as these payments are more efficient and transparent. The proliferation of digital payments in the country is further analyzed to assist in Indonesia ecommerce growth. 

Cyberattacks or data breaches in an e-commerce enterprise may lead to a reduction in the trust of customers in online shopping and can negatively impact the ecommerce growth in Indonesia. Ecommerce players like Tokopedia, one of Indonesia's largest e-commerce platforms, have suffered significant data breaches. Such incidents also attract regulatory scrutiny and may lead to stricter data protection laws, hampering the growth of the indonesia e commerce industry. 

With COVID-19, the Indonesia ecommerce Industry has witnessed a significant expansion in the past few years, primarily supported by the high internet and smartphone penetration, growing young and tech-savvy population, changing consumer purchasing behavior, and expanding digital economy, coupled with the significant presence of major e-commerce vendors offering the variety, convenience, and competitive pricing for online shopping. In addition, the Indonesian government's proactive role in fostering e-commerce in the digital economy has further fueled the growth of the Indonesia ecommerce industry. 

Indonesia E-commerce Market Trends

Penetration of Internet and Smartphone Usage Drives the Indonesia ecommerce Industry

  • Over the years, Indonesia has experienced a surge in internet penetration, with a large portion of the population accessing the internet. As per the report by The Indonesian Internet Service Providers Association, internet penetration in Indonesia has risen from 78.1% in 2023 to 79.5% in 2024. With the increase in internet penetration, the growing sales of new and updated smartphones with 5G features are also increasing in the country. 
  • With the growing demand for smartphones in the company, many smartphone providers are launching new products. For instance, in January 2024, Oppo announced that the company was launching the OPPO Reno 11F smartphone in Indonesia. The company has already tested the smartphone in the country and plans to launch it in 2024. 
  • Such investments by companies are increasing the sales of smartphones in the country, and with the widespread availability of smartphones, Indonesians can shop online anytime and anywhere, providing them with unparalleled convenience. E-commerce platforms offer a wide range of products and services, allowing consumers to find what they need with just a few taps on their smartphones. According to GSMA, smartphone adoption in 2022 was 83% and is expected to grow to 94% by 2028. 
  • In Indonesia, the use of the internet has grown among students; as per the report by the Central Bureau of Statistics, 77.5% of students aged between 5 and 24 years use the internet in the country. Students spend a lot of time on social media platforms such as Instagram, Facebook, and WhatsApp, which are widely used in Indonesia and have become essential channels for e-commerce transactions. Many businesses leverage social media to promote their products and interact with customers, leading to the rise of social commerce in the country. 
  • Moreover, the Indonesian government has supported the digital economy and implemented initiatives to boost Indonesia ecommerce growth. This includes improving internet infrastructure, promoting digital literacy, and incentivizing e-commerce businesses. 
  • Overall, the penetration of the internet and smartphone usage has created a favorable environment for Indonesia ecommerce industry. As technology continues to evolve and connectivity improves further, the e-commerce market is expected to expand even more in the coming years, increasing Indonesia's ecommerce market share. 
Indonesia E-commerce Market: Smartphone Adoption, in Percentage (%), Indonesia, 2022-2030

Fashion and Apparel Segment is Expected to Hold Significant Market Share

  • Economic growth and urbanization in Indonesia have led to a burgeoning middle-income group with higher disposable incomes. As consumers become more affluent, they increasingly shop online for fashion and apparel products, seeking convenience and a wider selection of the products that are available online. E-commerce companies also provide an option for customers to browse several trending apparel and fashionable accessories. This increases customers' inclination toward the country's online shopping platforms. 
  • Furthermore, Indonesian consumers are becoming more fashion-conscious, influenced by global fashion trends and the proliferation of social media platforms. Many internet users in Indonesia spend their time on Instagram and Facebook and follow many social media fashion influencers who make people aware of the latest trends in fashion. 
  • According to the Indonesian Internet Service Providers Association (APJII), internet penetration in Indonesia rose from 78.1% in 2023 to 79.5% in 2024. This growing awareness of fashion and style has fueled demand for diverse clothing and accessories available through e-commerce channels, which drives the indonesia ecommerce market.Moreover, in Indonesia, the sales of smartphones are growing. With the increasing use of smartphones and mobile devices, mobile commerce (m-commerce) has emerged as a significant driver of online retail growth in Indonesia. According to the Information and Communications Technology Ministry, Indonesia is billed as the next big market in m-commerce after China and India, with an annual growth of 50%. 
  • Fashion and apparel retailers are optimizing their websites and apps for mobile shopping to cater to the preferences of mobile-savvy consumers. In addition, these companies have integrated their website into social media sites where customers can directly access the website through their social media accounts, helping the ecommerce growth in Indonesia market. 
  • Overall, the fashion and apparel segment in the Indonesia ecommerce market is poised for continued growth. As e-commerce continues to mature in Indonesia, fashion retailers are expected to innovate and adapt to meet consumers' evolving needs and expectations during the forecast period. 
Indonesia E-commerce Market : Internet Penetration, in Percentage (%), Indonesia, 2023-2024

Indonesia E-commerce Industry Overview

Indonesia ecommerce industry is semi-consolidated with the presence of major players like PT Tokopedia (PT Goto Gojek Tokopedia Tbk), PT. Shopee International Indonesia (Shopee, Sea Limited), PT Bukalapak.com Tbk, Lazada (Alibaba Group Holding Limited), and Blibli (PT Global Digital Niaga Tbk). Indonesia e commerce companies are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage. 

  • January 2024 - Shopee Indonesia launched its new digital service, High-End Brands (HEB). The newly launched service highlights high-end premium local brands from Indonesian designers. Besides helping local brands to export, Shopee High-End Brand service will also assist the affiliated brands in reaching consumers across 514 Indonesia's cities and regencies.
  • July 2023 - Chinese e-commerce firm Alibaba Group Holding invested an additional USD 845 million into Lazada, its online retail unit in Southeast Asia. With this latest investment, Alibaba's total investment in the company has exceeded USD 1.8 billion this year. 

Indonesia E-commerce Market Leaders

  1. Pt Tokopedia (pt Goto Gojek Tokopedia Tbk)

  2. Pt. Shopee International Indonesia (shopee, Sea Limited)

  3. Pt Bukalapak.com Tbk

  4. Lazada (alibaba Group Holding Limited)

  5. Blibli (pt Global Digital Niaga Tbk)

*Disclaimer: Major Players sorted in no particular order

Indonesia Ecommerce Market Concentration
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Indonesia E-commerce Market News

  • February 2024 - Tokopedia, the e-commerce subsidiary of GoTo Group, officially concluded its merger with TikTok, signifying the return of TikTok Shop to Indonesia. This deal absorbs TikTok Shop's Indonesia business into the Tokopedia entity, with Tokopedia now jointly owned by TikTok and GoTo. As previously announced, TikTok will invest over USD 1.5 billion in the enlarged entity over time to provide future funding for the business. 
  • January 2024 - To improve its ecommerce capabilities, SIRCLO, an Indonesian omnichannel commerce enabler, announced a collaboration with Shopify, a major player in the worldwide ecommerce market. In a recent statement, SIRCLO claimed that this partnership will combine the assets of both businesses to provide better e-commerce platforms in Indonesia, revolutionizing the online shopping experience. The merging of SIRCLO's specialized technology arm, SWIFT Omnichannel, with Shopify's advanced commerce infrastructure forms the foundation of this collaboration. 

Indonesia Ecommerce Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key Market Trends and Share of E-commerce of Total Retail Sector

    4. 4.4 Impact of COVID-19 on the E-commerce Sales

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand from Fashion Industry

      2. 5.1.2 Penetration of Internet and Smartphone Usage

    2. 5.2 Market Challenges

      1. 5.2.1 Data Security

    3. 5.3 Analysis of Key Demographic Trends and Patterns Related to the Ecommerce Industry in Indonesia

    4. 5.4 Analysis of the Key Modes of Transaction in the Ecommerce Industry in Indonesia

    5. 5.5 Analysis of Cross-border Ecommerce Industry in Indonesia

    6. 5.6 Current Positioning of Indonesia in the E-commerce Industry in Asia Pacific

  6. 6. MARKET SEGMENTATION

    1. 6.1 By B2C Ecommerce

      1. 6.1.1 Market Segmentation - by B2C Application

        1. 6.1.1.1 Beauty and Personal Care

        2. 6.1.1.2 Consumer Electronics

        3. 6.1.1.3 Fashion and Apparel

        4. 6.1.1.4 Food and Beverage

        5. 6.1.1.5 Furniture and Home

        6. 6.1.1.6 Other B2C Applications (Toys, DIY, Media, Etc.)

    2. 6.2 By B2B E-commerce

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 PT Tokopedia (PT GOTO GOJEK TOKOPEDIA TBK)

      2. 7.1.2 PT Shopee International Indonesia (Shopee, sea limited)

      3. 7.1.3 PT Bukalapak.com Tbk

      4. 7.1.4 Lazada (Alibaba Group Holding Limited)

      5. 7.1.5 Blibli (PT Global Digital Niaga TBK)

      6. 7.1.6 PT Bhinneka Mentaridimensi

      7. 7.1.7 Orami.co.id

      8. 7.1.8 PT Raksasa Laju Lintang (ralali.com)

      9. 7.1.9 PT Sociolla Ritel Indonesia

      10. 7.1.10 ZALORA - PT Fashion Eservices (Global Fashion Group)

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

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Indonesia E-commerce Industry Segmentation

The Indonesian e commerce industry is based on the GMV generated by B2B and B2C ecommerce across the country. The analysis is based on the market insights captured through secondary research and the primary. The market also covers the major factors impacting the Indonesia ecommerce market growth in terms of drivers and restraints. 

The study also tracks important market metrics, underlying growth influencers, and significant industry vendors, providing support for market estimates and growth rates in Indonesia throughout the anticipated period. Indonesia ecommerce market is segmented by B2C ECommerce (beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture and home, and other B2C applications (toys, DIY, media, etc.))) and B2B ecommerce. The Indonesia e-commerce market size and forecasts are provided in terms of value in USD for all the above-mentioned segments. 

By B2C Ecommerce
Market Segmentation - by B2C Application
Beauty and Personal Care
Consumer Electronics
Fashion and Apparel
Food and Beverage
Furniture and Home
Other B2C Applications (Toys, DIY, Media, Etc.)
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Indonesia Ecommerce Market Research FAQs

The Indonesia E-commerce Market size is expected to reach USD 81.80 billion in 2024 and grow at a CAGR of 15.5% to reach USD 168.10 billion by 2029.

In 2024, the Indonesia E-commerce Market size is expected to reach USD 81.80 billion.

Pt Tokopedia (pt Goto Gojek Tokopedia Tbk), Pt. Shopee International Indonesia (shopee, Sea Limited), Pt Bukalapak.com Tbk, Lazada (alibaba Group Holding Limited) and Blibli (pt Global Digital Niaga Tbk) are the major companies operating in the Indonesia E-commerce Market.

In 2023, the Indonesia E-commerce Market size was estimated at USD 69.12 billion. The report covers the Indonesia E-commerce Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia E-commerce Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Ecommerce in Indonesia Industry Report

Statistics for the 2024 Ecommerce in Indonesia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ecommerce in Indonesia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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INDONESIA E-COMMERCE MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2024 - 2029)