Indonesia's e-commerce gets boost from rising internet use

2,500 SMEs were also trained on utilizing e-commerce platforms in 2020.

Rising internet penetration, increasing digitalization, and proliferation of websites have been driving e-commerce growth in Indonesia, which is estimated to have jumped 37.4% to reach $25.3b (IDR351.1t) in 2020, according to GlobalData.

This is compared to the pre-COVID-19 estimate of 22.2% for the same year. The figure is expected to rise at a compound annual growth rate (CAGR) of 19.2% between 2020 and 2024, to reach $51.0b (IDR707.6t) in 2024.

“Online shopping is gradually becoming mainstream in Indonesia with more consumers preferring due to the convenience it offers,” GlobalData’s banking and payments senior analyst Kartik Challa commented.

To push consumer spending during the pandemic, the government collaborated with the Indonesian E-Commerce Association and rolled out programs for around 2,500 SMEs, providing training on utilizing e-commerce platforms for ramping up sales.

“As Indonesia continues its digital transformation, the use of electronic payments, including cards and alternative payment solutions for e-commerce purchases, will rise as consumers are moving away from cash due to fear of getting infected,” Challa added.