The Ministry of Industry Expects Indonesian E-Commerce to Grow 60%-70% this Year

That the Indonesian e-commerce industry has developed vastly is not an uncommon thing to know. The Ministry of Industry even predicted that the industry will grow much more significant in 2015, even though people’s worries toward online fraud are still there.

As being cited from Bisnis, Electronics and Telematics Industry’s Director Ignasius Warsito mentioned, “The e-commerce trend in Indonesia will grow 60%-70% even though there is a small percentage of people’s worries toward online fraud.”

Further, he added that the growth would be largely formed by the increase of technology access and direct connectivity to the people. Therefore, he suggested that every player in this segment should do proper branding and strengthen it anytime possible.

The industry’s vast growth is also shaped by the vast growth of the number of Indonesian internet users. As Berita Satu reported, the data by APJII suggested that by the end of 2014, the number of Indonesian internet users reached 107 million, with 63,4% of them were members of the upper middle class, 21,5% of them were entrepreneurs, and 15,1% of them were labors.

Vice Minister of Trade Bayu Krisnamurthi said, “The Indonesian e-commerce market will reach USD 10 billion in 2015 and its growth in the next 3-4 years will touch nearly 40%.”

The data from eMarketer suggested that Asia Pacific will be the world’s biggest B2C (Business-to-Consumer) through e-commerce player starting 2014. It even estimated that the total retail sales in the region will reach $1 trillion by 2017. This prediction was supported by the fact that the number of retail sales in three most populated countries in the region (China, India, and Indonesia) keeps growing significantly.

However, eMarketer assumed that the growth of e-commerce in Indonesian will be slower than 1-2 years ago, with an estimated 37,2% of growth and decreasing.