E-commerce: Australia’s shopfront to Indonesia?

31 Jan 2018

Indonesia’s vibrant ecommerce market has developed rapidly in recent years and presents significant potential for Australian businesses looking to access new export opportunities.

Australia’s digital commercial links with Indonesia are the focus of the Indonesia-Australia Digital Forum, jointly hosted by the Australian and Indonesian Governments in Jakarta on 31 January – 1 February.

To coincide with the forum, Austrade has released a new guide: E-commerce in Indonesia: A guide for Australian business, for exporters looking to enter the market or boost their existing market presence.

The guide, which was prepared by research company Amplitude in conjunction with Austrade, contains research indicating emerging opportunities for Australian businesses looking to access Indonesia’s 100 million-plus internet users.

Since 2014, online retail as a percentage of total sales has grown 60-70 per cent annually, and Macquarie Research expects this to expand from US$18 billion in 2016 to US$60 billion by 2020. [1]

Sally-Ann Watts, Austrade’s Senior Trade Commissioner in Jakarta, says the guide indicates there is room for growth in the archipelago’s e-commerce market.

‘In 2016, Indonesia’s e-commerce sales as a percentage of total annual retail sales amounted to 1.6 per cent, compared to 13 per cent in China,’ she says. ‘Australian exporters should look to online consumers in Indonesia for the possibilities afforded by growth. Accessing these e-commerce channels still has its challenges, but success awaits those who can provide products that cater to the tastes of Indonesian consumers, while navigating ongoing regulatory barriers.’

The guide is a starting point for Australian businesses considering selling products on Indonesian e-commerce platforms. It contains an overview of Indonesia’s largest e-commerce platforms, online consumer profiles and preferences, popular products and categories, entry points for Australian businesses and a how-to guide on approaches for accessing the market.

Australian exporters should also note the Indonesian Government regularly reviews regulations on cross-border e-commerce, which may have implications for Australian businesses.

Contact Austrade for information on doing business in Indonesia.