Tuesday, July 16, 2024

Indonesia’s e-commerce market set to surpass US$53 billion by 2025

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Indonesia’s e-commerce market is forecasted to exceed US$53 billion (Rp866 billion) by 2025, reflecting increased consumer confidence in online shopping and improving digital payment systems.

As the world’s third-largest e-commerce market behind China and the United States, Indonesia’s growth is driven by higher per capita income, expanded internet access, and urbanization.

According to a report by L.E.K. Consulting, 96 percent of Indonesia’s population owns a mobile phone, with 76 percent having internet access. Additionally, over 65 percent of the population is under the age of 44, indicating a higher propensity for impulsive buying.

These demographic trends and shopping behaviors reveal significant potential for the e-groceries market in Indonesia, with market penetration expected to grow from 1 percent in 2020 to 3 percent by 2024.

Consumer trust in online transactions is further bolstered by guarantees offered by e-commerce platforms. A Nielsen report indicates that 72 percent of Indonesian consumers prefer e-commerce sites that provide assurances against defective or counterfeit products, enhancing their confidence in online transactions.

As of 2023, the Gross Merchandise Value (GMV) of e-groceries in Indonesia reached $1 billion, with Astro commanding 5 percent of this market. Astro has solidified its position as the sole player in quick commerce e-grocery in Indonesia, giving it a 100 percent market share in this segment.

In line with these trends, Astro, an e-grocery shopping platform, has launched the “Ada yang Baru, Ada yang Biru” campaign, unveiling a new identity and logo.

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