Digital Markets and Digital Goods in Indonesia

E-commerce has become one of the most remarkable and important platform in the world of business nowadays. It began in 1995 and grew exponentially and is still stable even in a recession. Retail e-commerce revenues grew 15-25 percent per year until the recession of 2008-2009, when they slowed measurably. In 2014, e-commerce revenues are growing again at an estimated 12 percent annually.

According to Liputan6, Indonesia has becoming one of the countries with the highest growth in terms of e-commerce due to the increasing amount of business people that develops their business into digital platform in recent years. The high growth rate of e-commerce is also motivated by the growing internet usage in Indonesia.

According to the data released by iPrice, Tokopedia becomes the e-commerce that has the highest monthly active user (MAU) in Indonesia. The e-commerce site itself has visited by approximately 137 million users every month. Tokopedia itself has consistently occupies the top position for the highest number of monthly visitors since the second quarter of 2018.

A report titled “Unlocking Indonesia’s Digital Opportunity” by McKinsey also stated that transition to digital realm will increase the economy growth up to US$ 150 million in 2025. About 73 percent of internet users in Indonesia accesses internet by using cellular devices and keeps growing in the next five years. According to a data of e-marketers released by Top Brand Award site in 2013, there are 4.6 million internet users of Indonesia that is also using e-commerce, while the total transaction amount from the e-commerce itself reached US$ 1.8 million or about IDR 21.9 trillion and continues to grow every year.

As a business actor, it is better for us to follow the current trends, such as the use of technology to sell our products digitally. The opening of this trend aims to keep business players competitive in the market.

By: Rizqie H.Effendie & Gunawan Wang