Indonesia E-Commerce Market

Indonesia E-commerce Market Size Report – In a Glance

As per the survey report on Indonesia e-commerce market, the market is expected to foresee a CAGR value of 10.4% during 2025-2035, and further generate a market size of USD 157.7 billion by the end of 2035. In 2025, the market size was value at USD 53.4 billion revenue.

• The Indonesia e-commerce market’s growth is driven by growing consumer demand for variety of products and expansion of e-commerce sector.
• KDMI analyst’s growth analysis foresees logistical and infrastructure challenges as restraint for Indonesia e-commerce market.

Indonesia E-commerce Market Analysis

E-commerce or electronic commerce is the process of buying and selling goods, services, and other digital products over the internet through online platforms like websites, mobile apps, and marketplaces. E-commerce offers convenience and accessibility to consumers and enable to make choice of products from different varieties. The study report suggests, Indonesia’s e-commerce market users are expected to increase between 2023 to 2027, from 48.2 million users to 244.67 million users. In 2022, online shopping malls captured 93.8% of traffic. This significant expansion of e-commerce is driving the Indonesian market. The expansion also helps businesses to expand their global reach and streamline operations as compared to traditional stores. E-commerce platforms enable consumers to benefit from competitive pricing, with access to various products from different regions. Some of the significant companies in Indonesian e-commerce market includes Shopee, Lazada, Blibli, and more.

Indonesia E-commerce Market Growth Drivers and Restraints

Growth Drivers

• Rising internet and smartphone penetration – Indonesia’s e-commerce market is experiencing significant growth which is driven by increasing adoption of advanced technologies in consumer electronic industry and rising penetration of internet. According to reports, Indonesia’s internet penetration rate has edged up to 79.5% as of January 2024, which is greatly impacted by younger population – “Generation Z” contributing to the continuous increase in usage. Moreover, the report shows, Indonesia is the fourth-largest smartphone market across the world. According to International Data Corporation (IDC), in 2023, Indonesia’s smartphone shipments totaled to 34.6 million units. Further, government support and initiatives in offering affordable data plans, 4G expansion, and 5G integration has driven expansion of e-commerce market and boosting digital marketplaces in the region.
• Expansion of digital payment ecosystem – With the increased adoption of innovative technology and Industry 4.0 is leading to launching of digital wallets and e-payment platforms such as GoPay, OVO, ShopeePay, and more, which are transforming payment landscape in the country. Consumers are increasingly shifting their preference towards e-wallets for ease of use, low transaction costs, extra discounts, and loyalty rewards. The advancement in banking technology is driving adoption of digital payment ecosystem to ensure security, speed, and seamless transaction between consumer and seller. These technologies drives e-commerce marketplace in the region.

Restraints

• Logistical and infrastructure challenges – Despite of strong adoption of digitalization in e-commerce industry, the Indonesia’s market faces restraint due to logistical issues and infrastructure development challenges. Stringent government regulations and lack of infrastructure facility in rural areas, limits expansion of e-commerce market in the region. Many rural and remote areas face infrastructure challenge which leads to unreliable delivery services and high shipment costs that discourage consumers to purchase from online platforms. Moreover, delivery time are often longer in these areas as compared to urban areas. Logistical challenges also result in increases operational cost, these factors slowdowns market expansion in remote areas.

Indonesia E-commerce Market Segmentation

Our experts at KD Market Insights have segmented the Indonesia e-commerce market research report as:

Analyst’s Observation on Indonesia E-commerce Market Recent Developments

Over the years, the experts at KD Market Insights have been observing the recent developments associated with Indonesia e-commerce market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

AnyMind Group has announced that Indonesian manufacturer – PT Alam Hijau Selaras will invest in AnyX to expand its e-commerce launch of tissue brands like Caris and Laras. The collaboration is aimed to support distribution and store management for Caris and Laras across leading e-commerce platforms in Indonesia.

Alphabet Inc’s YouTube along with e-commerce platform Shopee has announced the launch of online shopping service in Indonesia and has planned to expand it in Southeast Asia to come up in competition with rival operator owned by TikTok.

Indonesia E-commerce Market Competitive Landscape

Some of the significant participants who top the Indonesia e-commerce market share:

• Pt Bukalapak.com Tbk
• Blibli (pt Global Digital Niaga Tbk)
• PT GOTO Gojek Tokopedia Tbk
• Sea Ltd (PT Shopee International Indonesia)
• Lazada (Alibaba Group Holding Limited)
• Shopee
• Orami
• Mapemall
• Indomaret Klik
• Ralali