This document discusses the potential for developing an online printing market in Surabaya, East Java, and Eastern Indonesia. It notes that the region has high internet usage, especially on smartphones. Surabaya has become a major e-commerce hub, surpassing Jakarta, with 71% of residents shopping online daily. The document outlines considerations for target market selection, such as conducting industry mapping and clustering to identify high potential areas. Partnering with local printers could reduce transportation costs while improving their advanced production capabilities. Placing local representatives would allow for better customer insights and promotion of products and services.

1. SURABAYA, EAST JAVA AND EASTERN INDONESIA, AS A
TARGET FOR DEVLOPMENT OF ONLINE PRINTING MARKET
This article will discuss market segmentation based on geographical area / region and more
specific again the area of Surabaya, East Java and Eastern Indonesia.

2. SURABAYA, EAST JAVA AND EASTERN INDONESIA, AS A
TARGET FOR DEVLOPMENT OF ONLINE PRINTING MARKET
This article will discuss market segmentation based on geographical area / region and more
specific again the area of Surabaya, East Java and Eastern Indonesia.
Apart from being based on experience in
developing business in the geographical area of
Surabaya, East Java and Eastern Indonesia for
offline printed and packaging products, the
subject of online printing business development
was chosen in the areas of Surabaya, East
Java and Eastern Indonesia. It is not just the
selection of geography but also considering the
phenomena and facts relating to online
business in this geographical area, which can
later determine what steps and strategies will
be taken.

3. We start with the phenomena and facts related to the above subject as follows :
The growth of online businesses is supported by the increasing affordability of device prices.
About 68% of consumers also rely on smartphones when looking for product information for
further shopping. In 2018, it was recorded, 94% of consumers connected to the internet
access it via smartphones, while in 2013 only 40% of users accessed the internet through
that device. This growth is supported by more affordable equipment prices. 68% of
consumers also rely on smartphones when looking for product information for further
shopping.
. Indonesia is the country with the largest internet
economic growth in Southeast Asia reaching 27
billion US dollars in 2018. Research reveals that
online consumers in non-metropolitan cities
account for 46% of searches related to internet
packages, this indicates that they have a need to
go online

4. The results of shopping research show that Surabaya has now surpassed Jakarta in e-
commerce activities. In terms of the percentage of the population and the length of time users
spend shopping online, the capital city of East Java occupies the most active city in matters of
online shopping. Of the population, 71 percent of them conduct online trading activities. They
spend an average of 5.8 hours buying and selling online in a day.
The Indonesia Best Cities for Business
survey, shows Surabaya ranks first as the
best city for business. The respondents'
assessment in the survey included 8
variables, namely infrastructure, local
government support, licensing, availability
or ease of obtaining land, transparency in
local taxes, labor, business security, and
integrated services (ease and speed of
public services). Many open exhibitions
and discussions about the development of
Eastern Indonesia business discussions
conducted in Surabaya.

5. Lazada, the biggest e-commerce in the world that is already familiar to the public, makes
Surabaya a Business Center for Eastern Indonesia. Lazada's commitment in developing the e-
commerce industry in eastern Indonesia is reflected in the construction of a new distribution
center that functions as a warehouse and distribution hub in Surabaya, East Java. With the
growth of SME businessmen reaching 300% since five years ago, Surabaya has very high
potential, especially for SMEs who can increase their growth by reaching the online buying and
selling industry. With the high penetration of the Internet and widespread accessibility of
technology, we see Indonesia will continue to be the driver of the e-commerce industry,
especially in the Southeast Asia region. Indonesia is an important market for Lazada, where
Surabaya already has one of the largest warehouses for regulating e-Commerce activities in
eastern Indonesia

6. East Java Printing Industry Grows
4.60 Percent Per Year. The
contribution of the processing industry
to economic growth in East Java in
the first quarter of 2017 was around
29.30 percent. In the processing
industry there are digital media
printing and graphics industries with a
growth of 7 percent. The paper and
paper goods and printing industry
reached Rp. 27.44 trillion or 4.68
percent of 2017 East Java Gross
Regional Domestic Product (GRDP)
from the manufacturing sector.
Printing Industry Projected to Grow
5% in 2018.

7. East Java Province is the
economic center in Eastern
Indonesia, and Eastern Indonesia
can grow stronger and contribute
more to the Indonesian economy.
Surabaya is the capital of East
Java. Many open exhibitions and
discussions about the
development of Eastern
Indonesia business discussions
conducted in Surabaya. In
Surabaya stood IBT (Indonesia
Bagian Timur) Center which
consistently held an Expo to
Attract East Java and Eastern
Indonesia Business Cooperation.

8. The large number of international industrial zones, office buildings
and business centers and multinational companies based in
Surabaya, and even relocating their factories to East Java to
approach Surabaya further strengthened them as a gateway to
Eastern Indonesia, and a potential market area to run an online
printing business in Surabaya , East Java and Eastern Indonesia
After understanding the background of area market selection
according to the above considerations, here are some
consideration points for choosing a target market:
 Conduct industrial market mapping in selected areas, to
determine which industries have the highest purchasing
potential.
 Perform market potential clustering, for example by
investigating target markets in certain industrial areas or
certain business center
 The carrying capacity of infrastructure, transportation and
facilities

9. The three things above are done keeping in mind the location factors that will be additional
costs that have to be spent becoming more efficient
In its implementation, it is very possible to explore local printing companies as partners in the
product supply chain in this area, so that transportation costs can be reduced quite a lot. But it
should have been investing by providing training to improve the ability to produce products that
have high added value.
It is possible, to place sales representatives in this area, so that it can more quickly and more
easily capture what the prospective customer wants. The presence of representatives also
simultaneously provides information and promotions to the market so that our products and
services can be known closer to potential customers.

10. ANDRY YUNIADI
Sales, Marketing and Business
Development Professional, Geology
Lover, Traveler.
January 9, 2019