Indonesia E-commerce Market Size

Indonesia Ecommerce 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 E-commerce market in Indonesia is driven by the growing fashion industry and internet and smartphone penetration, among others.

• A key driver of e-commerce 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.
• In addition, high smartphone usage and internet penetration stimulate the growth of the e-commerce market in the country. The growing internet usage at affordable rates and the rise of smartphones has led to more accessible access to online shopping in the country. In addition, high mobile penetration in Indonesia makes it more convenient for consumers to shop for a wide variety of products online, thus positively influencing the market's growth.
• 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 the growth of the country's e-commerce market.
• 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 growth of the e-commerce market in Indonesia. E-commerce 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, thus further hampering the growth of the e-commerce market in Indonesia.
• With COVID-19, the e-commerce market in the country 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 fuelled the growth of the country's e-commerce market.