Southeast Asia’s e-commerce market is expected to boom in the coming years, advancing at an estimated compound annual growth rate (CAGR) of 32% from 2015 to 2025, to reach $88 billion. In that region, Indonesia is the largest economy, boasting a population of 261 million and a burgeoning middle class. Although infrastructure is an issue, 73% of the population lives on two main islands — Java with 141 million people and Sumatra with 50 million — so inland transportation is the bigger hurdle. Moreover, there is an opportunity for online retailers in that many people in second- and third-tier cities have very few shopping malls, and therefore limited product selections, especially compared with the capital, Jakarta. As Indonesia’s government continues to work on infrastructure improvements and decrease corruption, and mobile payment adoption increases, we expect to see huge leaps in e-commerce activity in the country.
Major E-Commerce Players In Indonesia
The e-commerce market in Indonesia is more fragmented than in most countries, with several regional players maintaining a foothold in the space.
- Lazada. Singapore-based Lazada entered Indonesia in 2012, and currently has the most site visitors out of all e-commerce companies in the country. It boasted nearly 63 million visits from May 17 to June 17 of this year. Its presence in the country also gives Chinese e-commerce titan Alibaba a foothold in the market as it holds a majority stake in the company.
- Tokopedia. Tokopedia — the most frequently visited Indonesian e-commerce company, with 54 million monthly visitors as of June 13 — was founded in 2009 and has raised $248 million in funding. It's been rumored that Alibaba plans to lead a new round of $500 million into the company, while reports surfaced in April that JD.com is also in talks to make a major investment. Tokopedia itself is rumored to be mulling the purchase of [...]