Indonesia's E-Commerce Sector to Grow by 8 times till 2022

Post by Anupam Pandey | Nov 02, 2018

The latest research published by the market experts at McKinsey has projected a growth of up to 8 times in the E-commerce sector of Indonesia. This growth is supposed to be achieved before 2022 as the projection chart has taken into account the year 2017-2022. The overall estimated worth of E-commerce sector in Indonesia at the end of the year 2017 was $8 billion. This figure is the gross merchandise value that is compiled from the goods and services taken by the customers including the socio-commerce platforms as well.

This growth projection is assumed to be achieved due to a plenty of supporting factors that have created a really great opportunity for growth. The figures reveal that only 30 million people in Indonesia had been engaging in online shopping till 2017. This is less than 15 per cent of the entire adult population of the country which is around 200 million at present.


There would be two key propellants of growth according to McKinsey. The first is the rising number of smartphone users in the country and an incredible rise in the number of active internet users in recent times. The second most critical factor is the huge population of the youth which currently witnessing a surge in its economic status and purchase capacity. The Indonesian economy has been going through an upward curve due to some robust macroeconomic growth achieved in recent times. This youth population with purchase capacity introduced to the smartphone technology will most likely create very favourable opportunity for growth in the e-commerce market.

Looking at the present statistics, the E-commerce sector only accounts for 5% of the retail sales and this figure is relatively lower than it ought to be which is nonetheless a healthy sign for the near future.  This figure is most likely to grow up to 25-30% in the next five years which will give a truly phenomenal boost to e-commerce sector on whole. This growth is also expected to create a plenty of other beneficial aspects too. For instance, this growth would create employment opportunity of over 25 million jobs, which is approximately around 20% of the overall workforce of the country.