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Online shopping here to stay, post-PPKM: Market report
While the full revocation of COVID curbs means consumers can physically head to the shops, an industry report finds it likely that many users will continue to rely on online shopping.
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A user browses an air conditioner offered on the Bukalapak e-commerce app on June 15, 2022 in Jakarta. (Antara/Muhammad Adimaja)
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ndonesia’s e-commerce sector is poised to remain strong this year with online shopping expected to stay relevant, even though an end to the public activity restrictions (PPKM) offer consumers the option to return to conventional shopping at brick-and-mortar stores.
Rusdy Sumantri, director at consumer intelligence company NielsenIQ, said that the industry still had room to grow, as the number of e-commerce users remained below the number of all internet users in Indonesia last year.
This meant that at least 10 million users were untapped.
“With PPKM restrictions gone, shoppers now have the option to shop offline. Yet with e-commerce platforms, the numbers continue to grow, implying that we can still tap into a market where some users are not shopping [online],” Rusdy told a press conference on Thursday in Jakarta.
Read also: House passes ASEAN e-commerce trade deal
Indonesia’s e-commerce industry is projected to grow to US$95 billion in gross merchandise value (GMV) in 2025, up 17 percent compared to $59 billion in 2022, according to Google, Temasek and Bain & Company’s e-Conomy SEA 2022 report published on November last year.
The COVID-19 pandemic caused a shift in consumer behavior: With many people spending most of their time at home due to restrictive policies, the way they shopped changed to relying more on e-commerce platforms.
