Secured Payment Gateways and Rapid Opportunities in Secondary Tertiary Cities to Drive Growth in Indonesia E-Commerce Industry: Ken Research

Upgradation in Logistic Facilities, Opportunities in Secondary and Tertiary Cities, Prologue of Mobile Applications and Secure Online Transactions to Support Market Growth

E-commerce market in Indonesia will continue to grow at a considerable pace in the next few years with the rise in number of e-commerce companies, modes of secure online payment transactions, opportunities in tertiary and secondary cities and prologue of mobile applications thus enhancing the revenue share of online transactions. The country has various e-commerce unicorns such as Lazada, Traveloka, Tokopedia, Indomog and others.

The market is likely to enhance at a promising CAGR of 25.6% during the period 2014-2019. Robust growth by giants such as Ardent Capital along with in Indonesia e-commerce market in 2015 has led to the rise in revenues in online B2B commerce segment. These will boost the online commerce market revenues to USD 16.4 Billion by 2019 and will enhance the contribution share of online retail to a around 45% by the year 2019. Online retail industry is expected to emerge as the primary driver of Indonesia e-commerce market. Whereas online travel industry is likely to emerge as slow yet steady segment to drive the market. Rise in the number of corporate travelers across the country coupled with rise in the number of package tours and reservations are expected to augment the e-travel market of Indonesia in the future. Online advertising industry is expected to be the third largest contributor in overall Indonesia e-commerce market. This will be supported through consistent surge in demand for advertising agencies and rise in the number of available digital platforms for advertising. Online entertainment market is one of the slowly growing markets of Indonesia. Online gaming segment is expected to be the largest growing segment in the overall online entertainment market of Indonesia.

Furthermore, Indonesia is expected to increase its internet users to 72 million by 2017. Rise of reasonably priced smartphones and tablets coupled with the presence of innovative payment solutions such as Doku, Indomog, Veritrans and others have been the major contributors to online commerce market of Indonesia. The presence of liberal government legislations has also supplemented the expansion of e-commerce in the country.

According to an industry veteran, “various brick and mortar stores/ departmental stores are expected to digitize themselves and establish online presence for marketing of products. The surge in web portals and rise in internet penetration is likely to enhance the awareness among domestic population, which is anticipated to prosper the demand for online commerce in Indonesia.”

Sound business model and introduction of new mobile applications is essential to take ecommerce to a next level of growth in the country. Such kind of solutions will also help to tackle issues such as internet infrastructure, inefficient transportation channel, fraudulent image of online shopping and unreliable payment gateways. However, in spite of the efforts, since majority of the population in the country resides in the rural areas where the current state of internet infrastructure is poor and outdated, the challenge to extend better internet infrastructure and logistic services to the rural areas will still be there even after considerable amount of improvement in online commerce facilities with the help of government legislations in the country.”, according to the Research Analyst, Ken Research.

The report titled “Indonesia E-Commerce Market Outlook to 2019 provides a detailed overview on the e-commerce market of Indonesia and helps the readers to identify the ongoing trends in the industry and the anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, online commerce vendors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Key Topics Covered in the Report:

Indonesia E-Commerce

  • Market Size by Revenue
  • Market Segmentation by
    • Distribution Model
    • Purpose of Industry
  • Online Retail- Segmentation by Types of Goods, Type of Model Used, Type of Devices and Mode of Payment
  • Online Travel- Segmentation by Mode of Transport, By Tickets and By Device used for Booking
  • Online Advertising- Segmentation by Types of Advertisements, By Verticals, By Performance Model
  • Online Entertainment- Segmentation by Types of Sources
  • Consumer Profiles
  • Business Models
  • Trends and Development
  • SWOT
  • Competitive Landscape and Market Share of Major Players
  • Growth Drivers, Pre-requisites
  • Future Outlook
  • Analyst Recommendation
  • Macro Economic Parameters

Companies Covered in the Report

Online Retail (Amazon,, Blanja, Lazada, Blibli, Zalora, PlasaMSN and others)

Online Travel (Wego, Tiket, Traveloka, Valadoo and others)

Online Advertising (Facebook, Google, Blogspot, Youtube, Others)

Online Entertainment (PT. Lyto Datarindo Fortuna, PT. Kreon, PT. Megaxus Infotech)

Related Reports:

China E-Commerce Market Research Report Outlook to 2016 – Growing Preference for Cash on Delivery Payment

Malaysia E-Commerce Industry Outlook to 2019 – Driven By Internet Penetration and Mobile Access Devices

Indian E-Commerce Industry Outlook 2017 – Far Reaching Opportunities in B2b Marketplaces

Ken Research
Ankur Gupta, Head Marketing & Communications

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s