eCommerce market in Indonesia

Indonesia is the 8th largest market for eCommerce with a predicted revenue of US$92,274.8 million by 2024, placing it ahead of Russia. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 21.1%, resulting in a projected market volume of US$198,558.8 million by 2028. With an expected increase of 30.5% in 2024, the Indonesian eCommerce market contributed to the worldwide growth rate of 10.1% in 2024. Like in Indonesia, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Indonesian eCommerce market. Electronics is the largest market and accounts for 29.8% of the Indonesian eCommerce revenue. It is followed by Fashion with 22.6%, Grocery with 15.5%, Furniture & Homeware with 11.7%, Hobby & Leisure with 9.9%, Care Products with 5.9%, and DIY with the remaining 4.6%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Indonesian retail market, the online share is 9.4% and will increase by an average of 4.7% to 11.3% by 2028.

The biggest player in the Indonesian eCommerce market is blibli.com. The store had a revenue of US$411.9 million in 2023. Store rankings include every store that generates revenue in Indonesia. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Indonesia was considered.

The Indonesian eCommerce market in 2023 in terms of offered payment methods is fragmented and highly competitive with VISA (Cards) covering the largest share with 75.0% of all online stores checked. Other offered payment methods in the Indonesian eCommerce market in 2023 are Mastercard (Cards) with 68.4%, Bank transfer/cash in advance (Bank transfer) with 68.4%, and Invoice (unknown) with 46.1%. With 38.2% MANDIRI BANK (Bank transfer) still has a considerable market share amongst the offered payment methods compared to VISA (Cards).

Despite JNE Express's dominant position with 71.1% of online stores opting for its services, the Indonesian eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including Sicepat, J&T Express, Gojek, and TIKI, hold smaller but significant shares, contributing to a dynamic and fragmented market.