Government support plays an important role in the development of any industry, and e-commerce is no exception to this. In Indonesia, e-commerce is benefiting from a high level of government investment in the development of digital infrastructure and technologies, as well as the digitalisation of services in the country.
The COVID-19 pandemic drove a shift in consumer demand from store-based retailing to e-commerce, especially when it came to essential goods. The conditions of the health crisis meant that consumers preferred to avoid contact with other people in crowds or retail outlets as much as possible, limiting their exposure to the COVID-19 virus.
Mobile e-commerce continued to gain ground in Indonesia during the COVID-19 pandemic, registering a strong growth rate for 2020. Transactions made through mobile devices account for an increasing proportion of e-commerce purchases in Indonesia.
One major factor in the considerable growth registered in Indonesia’s digital landscape towards the end of the review period was the strong development of the country’s mobile telecommunications infrastructure. The centrepiece of these efforts is the recently completed Palapa Ring project, which has connected 514 cities and regencies throughout the country with fibre optic cables stretching from Sabang to Merauke, bringing Indonesia’s high-speed internet in line with other countries.
In 2020, the most popular form of payment was bank transfers and the use of digital wallets increased considerably compared to the previous year. Electronic transactions made using digital wallets have become increasingly prevalent in Indonesia in the last two years.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!