Indonesia E-Commerce Market Outlook to 2019 – Driven by Innovative Payment Solutions and Opportunities in the Secondary Cities

The Indonesia e-commerce market has showcased remarkable growth during the span of last five years on the grounds of expansion in product range as well as surge in online market places. In 2014, B2C retail distribution model was one of the most utilized and has garnered the highest share of ~% in the overall sales revenues.

Online B2B commerce had garnered a share of ~% in 2014 and is expected to enhance in 2015. Numerous investors and companies in Indonesia have realized the extent of hyper-competition and razor-thin margins in online B2C market. Expansion of product by B2B firms such as Amazon, Kaskus Networks, ASOS, Alibaba and others has led to the rise in online B2B commerce market of Indonesia.


Indonesia registered 42 million internet users in 2014 and social networking was observed as the most prevalent activity, with ~ percent of online users actively engaged on sites such as Facebook and Twitter. Search and Chat applications account for about ~% and 30% of the overall internet usage.

The total revenue generated by the online commerce market in Indonesia was USD ~ billion in 2014 which has increased from USD ~ billion in 2009 at a CAGR of ~% during the period 2009-2014.

In 2014, the digital advertising spends per internet user in Indonesia was USD ~. The digital media advertising spent of Indonesia was USD ~ per internet user in 2014 and is expected to increase by around ~% in 2015.


Indonesia has numerous retail websites such as Rakutan, Zalora, Lazada, Lotte Group, PT Trans retail, PT superhero and others with innovative product offerings, attractive pricings, seasonal offers and discounts. The apparels and footwear segment in lieu to the aforementioned factors have contributed ~% of the overall gross merchandise value in the online retail market in 2014.

The online retail market of Indonesia had generated revenue of USD ~ Billion in 2014. Rise of cheap smartphone and tablets with a price of less than USD 100 has broadened the access to e-commerce portals.


In 2014, online travel agencies in Indonesia had generated around ~% of the revenues through ticket bookings by means of Laptops as compared to 25% revenue through ticket bookings by means of desktop/ PC.

Wego is the leading player in the industry which has commanded a promising market share of worth ~% during 2014 in terms of GMV. Tiket is the second largest player in online travel market of Indonesia, which has reported share of ~% in terms of GMV during 2014

Indonesia E-Commerce market has been segmented on the basis of online retail, online travel, online advertising and online entertainment markets. Online retail has dominated the overall e-commerce industry with Amazon being the largest player followed by and Belanja. Tokopedia is one of the largest retail market places of Indonesia. It provides a C2C (Customer to Customer) retail platform for various individual entrepreneurs and small/medium businesses to open online stores. Online travel is the second major segment after online retail with Wego being the largest player in the market., which stood at the second place in the online travel market, is an Indonesian startup launched in November 2011

Source :

Ken Research
Ankur Gupta, Head Marketing & Communications


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