Indonesia’s E-Commerce Market is Estimated To Reach $130 million by 2020
undercover.co.id – This will make the Indonesia e-commerce market be the third largest in Asia after China and India. The 250 million of population and high penetration of mobile internet become factors stimulating the growth of Indonesia e-commerce. The data of Ministry of Communication and information technology depict, more than one third of 250 million people have the access to the internet, and 7 out of 10 people access it via mobile phones.
Other factors according to Adrian Sng, General Manager of SingEX Exhibition, are the vast amount of urban areas in Indonesia and spread of retail in different areas using payment trends COD (Cash On Delivery).
“It will able to support the growth of logistics and shipping business also the innovative payment transactions. With the support of e-commerce regulations in terms of payment and other regulatory legal frameworks, Indonesia has great opportunities in this wireless industry, “said Adrian.
Countries that will Effected by the growth of E Commerce
To encourage the sector of e-commerce in Indonesia, SingEX Exhibition by its subsidiary PT Omni e-Comm Expo exhibited e2eCommerce Indonesia in 2016, at the Hotel Mulia Senayan. The exhibition targeted the B2B e-commerce market. The exhibition was held in November 2 – November 3, 2016.
Besides from Indonesia, the exhibitors came from China, India, Germany, Singapore, South Korea, and US. The participant companies such as AsiaPay, BitHere, eParcel, J & T Express, NCS, PT Sydeco, and YSL Logistic included.
Logistics is one of the sectors taking benefit of the booming of e-commerce. Syarifuddin, Executive Director, quoting data of Frost and Sulivan Sulivan, said that the projection of transport and logistics market in Indonesia from 2011 to 2016 reached approximately Rp2.443 trillion. This market value included express delivery, parcel and logistics.
Focusing on SMEs e-commerce
Meanwhile, Lis Sutjiati, Expert staff of Ministry of Communication and information technology, in her speech before opened the exhibition said that e-commerce development strategy in Indonesia will be focused on SMEs not technology. The consideration is because SMEs have became the backbone of the Indonesia’s economy so far. On the other hand, there are only few of SMEs in Indonesia that take advantage of e-commerce.
“Only 9% of SMEs in Indonesia are ‘go online’, meanwhile SMEs in the US that have reached 94% of ‘go online’,” she said.
To motivate the adoption of e-commerce by SMEs, Government has already prepared steps to create The ‘Go Digital’ of 1,000 digitalpreneur and 800 thousand SMEs. The other programs are the realization of the ‘Go Digital’ of one million farmers and fishermen as well as settings up 187 integrated broadband villages. “To encourage the digital economy, by 2019 all residencies in Indonesia will have been experienced 4G network,” said Lis.