Indonesia is a promising e-commerce market in Asia-Pacific region
According to GlobalData, e-commerce sales across Indonesia are estimated to rise at a compound annual growth rate of 19.2% to reach $51 billion in 2024.
To push consumer spending during a pandemic, the government collaborated with the Indonesian E-Commerce Association. Together, they rolled out programs for around 2,500 SMEs, providing training on utilizing e-commerce platforms for increasing sales.
While traditional payment methods such as bank transfers and cash are still widely used for e-commerce purchases, the use of alternative payments is on the rise.
The data revealed that ‘bank transfers’ is the most popular payment tool with a 30% share in 2020. The COVID-19 outbreak is driving customers towards alternative payment tools such as OVO, GoPay, PayPal, Dana, DOKU, and LinkAja. As a result, the cash share is expected to decline from 98.0% in 2020 to 96.9% in 2024.
We’ve reported that the CEO of Irish fashion retailer Primark, Paul Marchant, disagrees with claims that COVID-19 has forced shoppers to continually shop online