Indonesia’s e-commerce market to surpass $30 billion in 3 years

Payment cards keep on dominating e-commerce purchases in Indonesia, accounting for 36.6% in 2019

Indonesia’s e-commerce market

Indonesia’s e-commerce market to surpass $30 billion in 3 years. Source: unsplash.com

GlobalData revealed that growing Internet penetration, rising foreign direct investment (FDI), and online shopping set to drive Indonesia’s e-commerce market.

A compound annual growth rate (CAGR) of 16.3% is expected to increase from an estimated $16.6 billion in 2019 to $30.3 billion in 2023. For comparison, between 2015 and 2019 the e-commerce market in Indonesia grew at a CAGR of 37.6%.

Online shopping events such as Harbolnas, Singles’ Day and Tokopedia Anniversary offering lucrative discounts, coupled with the proliferation of alternative payment solutions and improved logistic infrastructure supported e-commerce sales during the last four years
Ravi Sharma, Senior Analyst at GlobalData

The total e-commerce transaction value of alternative payment solutions in 2019 accounted for 19.4%, up from 15.5% in 2018. PayPal is chosen to be the most popular alternative payment tool, due to a combination of its comfort and security.

The research reveals that low-cost payment solutions based on QR code technology are increasingly being used in e-commerce. They allow consumers to make payments by scanning QR codes displayed on merchants’ websites.

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