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E-commerce dominates in 2019 with Tokopedia topping the list
The e-commerce sector in Indonesia grew at a compound annual growth rate (CAGR) of 88 percent from 2015 to 2019 with a gross merchandise value (GMV) of US$21 billion.
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West Java governor Ridwan Kamil (right) and Tokopedia CEO William Tanuwijaya chat after the signing ceremony of an MoU on West Java digital village development, digital public service expansion and fruit and vegetable farmers empowerment in Bandung on Aug. 28, 2019. (Kompas.com/Dendi Ramdhani)
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ndonesia’s e-commerce is spearheading the growth of the country’s burgeoning digital economy in 2019, although the government’s recent decision to lower the tax threshold for imported goods sold via e-commerce might slow the growth next year.
The e-commerce sector in Indonesia grew at a compound annual growth rate (CAGR) of 88 percent from 2015 to 2019 with a gross merchandise value (GMV) of US$21 billion, according to the annual e-Conomy SEA 2019 study, conducted by American tech giant Google, Singaporean holding company Temasek and management consulting firm Bain & Company.
“The e-commerce sector is growing rapidly [in Indonesia] due to large funding and tight competition from local and regional players,” said Google Indonesia managing director Randy Jusuf on Oct. 7.
Randy said the growth in the e-commerce sector was thanks to online shopping festivals, in-app entertainment and seller development. “There is a lot of innovation to encourage people to use e-commerce, such as in-app entertainment through ‘gamification’ and seller development by multiplying well-known brands.”
Southeast Asian countries are experiencing a sharp increase in the number of active users, which is estimated to rise to 150 million individuals in 2019 from 49 million individuals in 2015, according to the study.
A separate study by American multinational investment bank Morgan Stanley shows that e-commerce accounted for 8 percent of total retail sales in Indonesia last year, on course to reach 18 percent by 2023 fueled by changing behavior among customers.
According to a recent report by meta-search website iPrice written in collaboration with web analytics service provider SimilarWeb, Tokopedia was still topping the list of the most visited local e-commerce sites in the third quarter this year. With a total of 65.9 million average monthly visits, it secured 25 percent of the total market share.
