Indonesia’s E-commerce Industry to Double Its Earnings Next Year
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Daniel Tumiwa, chief of the Indonesian E-commerce Association (idEA), noted that the country’s ever-expanding pool of middle-class consumers has provided a significant boost to its e-commerce sector, estimating that the number of online shoppers could reach 10 million next year. The continued rise of smartphone usages across the country will also bolster growth, he added.
“The e-commerce industry is already becoming one of the pillars of Indonesia’s economy,” said Daniel, who’s also chief executive of marketplace platform OLX.com.
Indonesia is forecast to see some 34 million smartphones shipped into the country by the end of this year, up 21 percent from an initial 2015 forecast of 28 million units, according to information technology research firm International Data Corporation (IDC).
MatahariMall.com CEO Hadi Wenas separately added that online retail has great potential in Indonesia, forecasting the industry to contribute up to 5 percent of the economy by 2020 from the current 0.7 percent.
“Since it was first introduced in Indonesia, the industry has continued to grow and it will grow bigger going ahead,” he added.
Questions & Answers
Q.What is the projected revenue for Indonesia’s e-commerce industry next year?
What is the projected revenue for Indonesia’s e-commerce industry next year?
The e-commerce industry in Indonesia is expected to achieve earnings of Rp 20 trillion ($1.46 million) next year. This figure represents double the estimated earnings for the current year, which were between Rp 8 trillion and Rp 10 trillion.
Q.What factors are contributing to the growth of e-commerce in Indonesia?
What factors are contributing to the growth of e-commerce in Indonesia?
The industry's growth is driven by increasing Internet and smartphone penetration, along with an expanding middle-class consumer base. The rise in smartphone usage across the country is also expected to bolster this growth significantly.
Q.How many online shoppers are expected in Indonesia next year?
How many online shoppers are expected in Indonesia next year?
Daniel Tumiwa, chief of idEA, estimates that the number of online shoppers in Indonesia could reach 10 million next year. This expansion in consumer base is providing a significant boost to the e-commerce sector.
Q.What percentage of the Indonesian economy is online retail predicted to contribute by 2020?
What percentage of the Indonesian economy is online retail predicted to contribute by 2020?
Online retail is forecast to contribute up to 5 percent of Indonesia's economy by 2020. This is a substantial increase from its current contribution, which stands at 0.7 percent of the economy.
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