E-Commerce Booming in Indonesia, Survey Finds

(Bloomberg Photo/Brent Lewin)

By : Farid Firdaus | on 10:43 AM January 29, 2014
Category : Business

Up to 76 percent of Internet users in Indonesia shopped online over the past year and spent Rp 5.5 million ($450) annually on average, a survey has revealed.

The survey conducted by Greenberg Brand Strategy for credit card company Visa showed that online shoppers were now younger and spent more money on shopping websites.

Almost half, or 48 percent, of the online shoppers were in the 18-to-30-year age group and earned a higher income.

“E-commerce in Indonesia is growing rapidly as the number of Indonesian people connected to the Net, especially through smartphones, is growing,” said Ellyana Fuad, the president director of Visa Indonesia.

“The online market expansion and the growing number of online retailers last year clearly showed that there had been changes in young people’s online shopping behavior.”

The survey categorized the respondents based on the quantity of products and services ordered online and identified three types of online shoppers.

The first type is the “mature” shopper, comprising 48 percent of all Indonesian online shoppers. They spend Rp 6.5 million on average per year, with the majority of them spending money on travel, retail and other services.

The second category is the emergent shopper, making up 23 percent and who only purchases one or two types of goods online. This group spends about Rp 4 million every month.

The third category is the evolving type, which accounts for 29 percent of shoppers and spends around Rp 5 million per month to purchase three to four types of goods online.

Experts have pegged the value of Indonesia’s e-commerce potential at between $10 billion and $12 billion in 2015, spurred by the growing number of smartphone users connected to the Internet.

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