Report shows: Indonesia's e-commerce penetration rate is higher than that of the United States and France

During the epidemic, e-commerce has flourished around the world as all regions have been affected by lockdown restrictions . The epidemic has forced most people to work from home , which is also one of the important factors that has accelerated the growth of online shopping .

Indonesia is no exception. According to the latest report from research firm Momentum Works , e-commerce in Indonesia reached an all-time high in 2020. Another report said that in 2020, the industry accounted for 20% of total retail sales, a significant increase from 2% in 2016. This figure is also far higher than that of countries such as the United States, France, Denmark, Norway, Sweden and Spain.

Li Jianggan, CEO of Momentum Works , said the company deployed a field research team to conduct surveys to estimate the country's total e-commerce transactions, while other retail channels rely on listing data from third parties.

These e-commerce sales figures are consistent with findings from recent reports such as the E-economy sea 2020 by Google, Temasek and Bain & Company, which stated that Indonesia’s e-commerce gross merchandise value (GMV) reached US$32 billion last year.

On the other hand, the Momentum Works report found that the country’s total e-commerce GMV was higher at $40.1 billion in the same year. However, after investigators excluded canceled orders, returns and out-of-stock items, e-commerce net sales were $32.2 billion.

The 20% e-commerce penetration rate is impressive compared to the latest report from eMarketer . It would put Indonesia fourth in the world , ahead of the United States and France, and behind China, South Korea and the United Kingdom.

According to Momentum Works, e-commerce in Indonesia will continue to grow as new business models such as fresh food, consumer brands and digital finance emerge.

Indonesian e-commerce companies Tokopedia and Shopee remain at the forefront of the country’s e-commerce sector . According to Momentum Works, the two companies have expanded their lead compared to competitors such as Lazada, Bukalapak, Blibli and JD.com Indonesia.

Li Jianggan pointed out that each e-commerce platform has unique advantages. Tokopedia has its own payment and logistics services, and the merger of Tokopedia and Gojek will enhance its resources.

However, the Momentum Works CEO also pointed out that all players are similar in many aspects, such as the free delivery services they offer , marketing methods and promotions .

Indonesia