1. Indonesia's e-commerce market size in 2024

Continue to maintain rapid growth in 2024, the market size is expected to reach US$81.8 billion.

Growing at a compound annual growth rate (CAGR) of 15.5% between 2024 and 2029, it is expected to reach US$168.1 billion by 2029.

By 2024, Indonesia's Internet users are expected to reach 215 million, with young people accounting for nearly 70% and an overall Internet penetration rate of 79.5%.

The global e-commerce market size is expected to reach US$2.2 trillion by 2026, with a compound annual growth rate of more than 17%.

2. Popular e-commerce platforms in Indonesia in 2024

Shopee Indonesia

Ranked first in satisfaction in the Indonesian market, with 62% of Indonesian consumers listing it as their preferred e-commerce platform.

Shop Tokopedia

By the end of 2024, TikTok Shop Indonesia and Tokopedia will officially complete the system integration to form a new entity Shop Tokopedia.

Bukalapak

A well-known local e-commerce platform in Indonesia, it is one of the e-commerce platforms with the highest monthly active users in Indonesia.

 3. Development trend of e-commerce in Indonesia

Multi-channel sales is the key

Cannot rely on a single platform, need to spread risks through social e-commerce and self-built websites.

Agile response to policies and compliance

The Indonesian government may introduce new regulations to manage and regulate the e-commerce market. Merchants need to adapt to new compliance requirements as soon as possible, such as improving tax declaration and business license registration to reduce policy risks.

The rise of live e-commerce

For small-scale sellers in Indonesia, live streaming can attract new potential buyers. But still be prepared mentally, carefully polish the audience's viewing preferences, live streaming process, etc.

4. Things to note when foreigners engage in e-commerce in Indonesia

Register a local company. Currently, Indonesian e-commerce platforms only open local stores, requiring the store operators to be Indonesian local companies or Indonesian individuals. Foreigners who want to settle in must register a company in Indonesia.

Office location

· Remote team: Find a stable overseas warehouse to cooperate with, saving time and effort.

· Local roots: For those who sell sensitive goods, use overseas warehouses first, and choose shared spaces for offices. Consider building your own warehouse when the scale is large.

· General goods sellers: You can directly rent a Ruko (a building that integrates office and storage), and then find a larger warehouse when there are more orders.

For cross-border logistics, find a reliable freight forwarder and customs clearance company to ship the goods to Indonesia.

Some medium- and high-risk products require certification, such as BPOM for food and cosmetics, AKL for medical devices, and POSTEL for 3C products.

For more details, please consult PDAEXSEA professional consultants.