Indonesia E-Commerce Market Outlook to 2019” which provides a comprehensive analysis of the online retail, online travel, online advertising and online entertainment markets in Indonesia. The report covers various aspects such as market size of Indonesia online commerce market, segmentation on the basis of mode of distribution and purpose of industry, trends and developments and government regulations. The

1. INDONESIA E-COMMERCE MARKET REPORT
- 2019

2. Indonesia has a lot of up-side potential in the e-
commerce market since Indonesians are frequent
social media users. In2014, around ~% users
visited social media through cell phones and ~%
used social media through smart phones. 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.

3. In 2014, B2C retail distribution model was one of the
most utilized and has garnered the highest share of
~% in the overall sales revenues. Rise in internet
access along with secured online payment
gateways have been the foremost drivers in
Indonesia e-commerce market. Moreover, scarcity
of products in tier-2 and tier-3 cities has enhanced
the demand of various products in the e-commerce
industry.

4. Indonesia’s internet user base has grown at a CAGR
of ~% during the review period. Colossal
competition between mobile phone companies in
Indonesia has led to the decline in mobile phone
prices and subscription plans.Various e-commerce
retailers in Indonesia are expected to introduce this
scheme for online purchases in Indonesia. This
scheme provides flexibility to customers to try the
products before making the actual purchase.

5. Such services are expected to enhance the buying
experience of the customer.Regions outside of
Jakarta such as Denspar and Bali are expected to
generate more than ~% of the revenues for e-
commerce market of Indonesia whereas 20% of the
revenues are expected to be generated through
regions outside of Java.

6. 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.
Over the next coming years, a similar pattern of
growth is likely to be seen in the market as it is
expected to grow at a very rapid pace and is
projected to reach to USD ~ Billion by 2019.

7. Online C2C commerce market has been one of the
major growth factors of online commerce market of
Indonesia. Kaskus, Tokobagus and Berniaga are
the largest online C2C commerce companies in the
country. B2C retail in Indonesian archipelago has
been capital intensive and margins have been
achieved majorly through economies of scale. The
total revenue generated by the online commerce
market in Indonesia was USD ~ billion in 2014
which has increased from USD ~ billion in 2013 at a
CAGR of ~% during the period 2009-2014.

8. This is primarily due to the emergence of large
number of online portals, widespread internet
infrastructure and levitation in smartphone usage,
rapidly changing lifestyles has made the customers
to switch their mode of preference for shopping
from offline to online. The online retail market of
Indonesia had generated revenue of USD ~ Billion
in 2014 with dominance by the clothing segment
that had captured a share of around ~% by
revenues in the overall online retail market. Online
travel market in Indonesia is projected to become
the second largest market after online retail in
Indonesia.

9. 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.

10. During 2014, the e-commerce industry has garnered
the attention of large population in Indonesia, which
has signified the facts that people are anticipated to
shop online more often. This change in trend has
certainly helped the e-commerce companies to set
a benchmark for themselves and gain popularity
among the customers, thereby bolstered the
revenues. In 2014, B2C retail distribution model
was one of the largest and has garnered the
highest share of ~% in the overall sales revenues.

11. Also, numerous businesses in Indonesia have
recognized the affinity of social media and have
used the opportunity to connect and assist various
local startups such as “LakuBgt” and “Onigi”.
Numerous investors and companies in Indonesia
have realized the extent of hyper-competition and
razor-thin margins in online B2C market.Owing to
these opportunities in the years to come, the
revenues originated by the market are likely to
enhance at a promising CAGR of ~% during the
period 2014-2019.

12. Introduction of giants such as Ardent Capital along
with Bizzy.co.id in Indonesia E-commerce market in
2015 has led to the rise in revenues in online B2B
commerce segment. These will post the online
commerce market revenues at USD ~ Billion by
2019. The challenge in this sector is to enhance
internet penetration at a lower cost in homes along
with the enhancement of Indonesian conviction in
online payment gateways. The major segments in
Indonesia e-commerce market include retail, travel,
entertainment and advertising.

13. Online retail market in terms of revenues has
mounted at a substantial CAGR of ~% during the
period 2009-2014, which has reported the revenues
at USD ~ Billion during 2014.Wego and Nusa Trips
are one of the largest online travel sites in
Indonesia. The firm has a database of 100,000
hotels and more than ~ domestic and international
airlines. In 2014, around 70% of the people in
Indonesia had travelled for corporate/ business
purposes whereas the rest of inhabitants travel for
the purpose of leisure and holidays

14. 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. Search ads are one of the most
sorts after advertising techniques in the country
with a revenue share of ~% in 2014. People in
Indonesia rarely use an ad blocker therefore;
display ads are one of the most common forms of
advertising in the country and accounted for a
share of ~% in the year 2014.

15. Source: https://www.kenresearch.com/technology-and-telecom/it-and-
ites/indonesia-ecommerce-market-research-report/2114-105.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Website : www.kenresearch.com

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