Jakarta. Indonesia’s business-to-business, or B2B, e-commerce is forecast to have a market size of $21.3 billion in 2023, according to Deputy Trade Minister Jerry Sambuaga.

“So not only is it a huge and significant figure, this means there are a myriad of opportunities. It drives trade inclusivity and volume, as well as business competitiveness,” Jerry told a virtual conference on Indonesia’s B2B marketplace potential on Tuesday.

Jerry went on to say that the government had been using B2B marketplace to spur micro, small and medium enterprises (MSMEs) participation in public procurement. A B2B marketplace will not only help MSMEs sell their products, but it also provides them access to loans and mentoring.

“Business actors, stakeholders, and regulators must ensure a robust ecosystem to support this digital economy. We must make sure that MSMEs are not only adapting to technology, but can also grow their businesses with digitalization,” Jerry said.

At the same webinar, Mikiko Steven, the director at payment gateway company Xendit Group, pointed out B2B marketplace’s promising potential in Indonesia.

“In the past five years, the market trend has always been about business-to-consumer [B2C]. B2B has only become a trend recently for a more efficient and transparent business. B2B possesses immense potential because there is still huge room for growth and many gaps in the market, particularly among MSMEs,” Mikiko said.

According to Mikiko, B2B marketplace offers transparency in costs by taking out the middleman in the transaction chain. It also enables efficient logistics. Businesses have more options and can easily source their supplies from anywhere in the archipelago.

Xendit provides payment infrastructure for B2B marketplaces, such as Ula.

“We are more than a payment gateway. We are proud to support B2Bs like Ula on their digital infrastructure, be it for receipt of payments or settlements. [...] We are here to help make our partners’ operations more efficient. So startups like Ula can focus on their core operations without having to worry about their payment infrastructure,” he said.

Mikiko then revealed Xendit facilitates about Rp 200 trillion or $13.9 billion worth of transactions in a year. Xendit has also been enjoying a monthly growth rate of 10-15 percent in transaction value since its founding. 

"We are aiming for a 50-100 percent yearly growth in transaction value," Mikiko said.