Jakarta, Indonesia – The e-commerce market in Indonesia is expected to grow by 23.8% in 2022, and will be valued at IDR420t (around US$30b), according to insights from data and analytics company GlobalData.
According to the data, e-commerce payments in Indonesia are forecasted to rise further at a compound annual growth rate (CAGR) of 22.0% between 2021 and 2025, to reach IDR753t (US$53.8b) in 2025. Part of the forecasted growth’s reason is due to factors such as rising Internet and smartphone penetration, the growing middle class population, and proliferation of online merchants and payment tools.
In addition, the insights also noted that the rise in local e-commerce is also supporting the emergence of new payment models such as buy now pay later. The Indonesian buy now pay later market is crowded with several players including banks and payment service providers offering this service.
Nikhil Reddy, payments senior Analyst at GlobalData, commented, “Online shopping is popular in Indonesia, a trend that has become more prevalent amid the COVID-19 pandemic. The recent outbreak of the Omicron variant has further led to the resurgence of new cases, the highest in the last six months, which is likely to drive online shopping.”
He added, “The COVID-19 outbreak has accelerated consumers’ shift from in-store to online payments. The uptrend in e-commerce sales is likely to continue over the next few years, supported by government initiatives, growing consumer preference and improvements in payment infrastructure.”
