Indonesia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in indonesia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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eCommerce
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Indonesia’s eCommerce sector continues to demonstrate strong post-pandemic growth, underpinned by increasing digital adoption, a rising middle class, and deeper market penetration in second- and third-tier cities. Despite the lifting of pandemic-era social restrictions, eCommerce has maintained its upward trajectory and remains a critical channel for consumer engagement and retail distribution. Most eCommerce businesses in Indonesia were micro and small businesses and did not have financial reports.

Indonesia is the largest eCommerce market in Southeast Asia, accounting for over 52% of ASEAN’s total online business volume. In 2023, the market reached an estimated USD 52.93 billion and is projected to grow to USD 86.81 billion by 2028, at a compound annual growth rate (CAGR) of 10.4%. As digital infrastructure improves and mobile internet penetration increases, especially outside Java and Sumatra, Indonesia’s eCommerce landscape is expected to evolve rapidly, with greater inclusion of rural and suburban consumers. Based on the industrial category, most eCommerce businesses were engaged in the Category Wholesale and Retail Trade, Car and Motorcycle Repair and Maintenance, and followed by Category Accommodation and Food Service Activities, Category Manufacturing, Category Other Service Activities and Category Transportation and Storage.
 

Top Products and Services

Indonesia’s eCommerce market is divided into B2C and B2B segments. 

Leading B2C categories include:

  • Fashion and apparel
  • Beauty and personal care
  • Consumer electronics
  • Food and beverages
  • Furniture and home goods
  • Toys, media, and DIY products

Top B2B eCommerce players include:

  • Ralali
  • AXIQoe
  • Monotaro
  • Bizzy
  • Kawan Lama
  • Mbiz
  • Blibli
  • Electronic City
     

Legal and Regulatory Environment

The Indonesian government has made significant regulatory interventions to manage the rapid growth of online commerce. Government Regulation No. 80/2019 (GR 80/2019) serves as the overarching eCommerce law, focusing on consumer protection, electronic contracts, liability, and tax compliance.

In September 2023, the Ministry of Trade issued Ministerial Regulation No. 31/2023, which bans the sale of goods under USD 100 by foreign merchants on eCommerce platforms, aiming to protect domestic small businesses. The regulation also prohibits direct sales via social media platforms such as TikTok and Instagram, though advertising remains permitted. Platforms must now clearly separate social networking and transactional functionalities. Non-compliant firms risk fines and potential revocation of operating licenses in Indonesia. Most eCommerce businesses used instant messaging as a media transaction.

All goods sold online must comply with applicable national standards, including SNI (Indonesian National Standards) and BPOM (Food and Drug Supervisory Agency) requirements, aligning eCommerce obligations with those governing offline retail.

Consumer Behavior

Consumer research from 2023 indicates that married couples without children are the most active online shoppers, accounting for 58.2% of transactions. This group typically has dual incomes and fewer financial obligations, allowing for higher discretionary spending. Single consumers accounted for 38.7%, while other household types represented 3.1%.

Indonesians increasingly rely on eCommerce for everyday goods, and loyalty is often driven by platform user experience, promotional offers, and fast delivery guarantees. Price sensitivity remains high, especially in non-metro areas, where cashback, bundling, and “free shipping” deals are strong drivers of purchasing behavior.

In general, the dominance of instant messaging in eCommerce in Indonesia can reflect the characteristics of a more informal, flexible market oriented towards personal relationships with customers. The dominance of instant messaging can imply that many businesses may prefer platforms that are easily accessible and do not require complex technological infrastructure, such as websites or large eCommerce platforms. Using instant messaging for sales and orders is usually cheaper than building and maintaining a website or investing in a large eCommerce platform.

Platform Preferences and Payment Methods

Indonesia is now the third-largest eCommerce market globally, behind only China and the U.S. Strategic partnerships and M&A operations (e.g., the TikTok-Tokopedia merger in 2024) are reshaping the competitive landscape and enhancing consumer experiences. 

Table: The most dominant eCommerce platforms:

Shopee38%
Tokopedia23%
Blibli9%
Lazada8%
Orami3%

Digital payments dominate, accounting for 49.3% for eCommerce transactions in 2024. Mobile wallets like GoPay and DANA are especially popular in Indonesian eCommerce industry such as: Digital wallets (35%), Bank transfers (26%), Credit cards (13%), BNPL (9%), Cash-on-delivery (8%), and Debit cards (6%).

Digital Marketing & Social Commerce

Social commerce is reshaping the digital retail landscape in Indonesia. Platforms like TikTok, Instagram, and Facebook allow users to discover products and, until recently, purchased directly within the app ecosystem. While Regulation 31/2023 restricts in-app checkout functionality, these platforms continue to play a critical role in product discovery and brand engagement.

Social commerce is expected to grow from a nascent stage to USD 22 billion in GMV by 2028, driven by young consumers, influencer marketing, and video content.

Frequently used platforms for social commerce and marketing:

  • Instagram
  • Facebook
  • YouTube
  • WhatsApp
  • LINE
  • X (formerly Twitter)
  • TikTok

eCommerce and Retail Events

Businesses looking to engage in Indonesia’s eCommerce ecosystem should consider participating in key industry events: