In line with Indonesia's promising e-commerce market - supported by rising Internet penetration, rising smartphone penetration and per capita GDP growth in Southeast Asia's largest economy - online shopping site MatahariMall.com has grown strongly since its launch a year ago. The online retailer, which celebrated its 1-year anniversary on Friday (09/09), sees its turnover grow by an average of 10 percent each month and already entered the top five of biggest e-commerce players in Indonesia (in the business-to-consumer category). However, exact (turnover) figures were not mentioned.

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Google Inc. and Temasek Holdings Pte released joint research that signals Southeast Asia's digital economy (which includes e-commerce, online games, advertising and other economic activities related to the Internet) will surge to USD $200 billion by 2025. Indonesia's digital market will account for 40.5 percent - or USD $81 billion - of this total market. With an estimated USD $46 billion, Indonesia's e-commerce sector will contribute most to the total.

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Indonesia managed to enter the top five in the Global Retail Development Index, reflecting the strength and potential of the nation's retail sector. In the 2016 edition of the index, compiled by global consulting company AT Kearney, Indonesia jumped to fifth position (from 12th in the 2015 edition). The Global Retail Development Index measures the attractiveness of the retail sector in 30 developing economies as well as identifying investment opportunities in these markets. China remains number one in the ranking, followed by India, Malaysia and Kazakhstan.

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Soon foreign investors will be allowed to control a full 100 percent stake in electronic commerce (e-commerce) businesses in Indonesia. Currently, the Indonesia Investment Coordinating Board (BKPM) is completing a new regulation that streamlines the latest regulatory changes in this industry (this regulation is expected to be completed in June 2016). Earlier this year, Indonesian President Joko Widodo signed a decree that opens (more wider) foreign ownership in various industries, including Indonesia's e-commerce industry.

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The move of the Indonesian government to relax foreign ownership rules regarding e-commerce businesses in Indonesia has also given rise to expectation that the country's major e-commerce players (including foreign ones) will be interested to list their companies on the Indonesia Stock Exchange through an initial public offering (IPO). Generally an IPO improves a company's transparency and corporate/financial management. E-commerce businesses are particularly in need of consumers' trust and confidence and therefore an IPO is considered a good corporate move.

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The Indonesian government announced it plans to allow 100 percent foreign ownership of cold storage businesses, sugar factories, rubber manufacturing companies, and the e-commerce business by revising Presidential Regulation No. 39/2014 on the Negative Investment List. The Negative Investment List (in Indonesian: Daftar Negatif Investasi) lists the sectors that are either fully or partially closed to foreign investment. Meanwhile, the government is studying whether other sectors can also be opened (or opened up wider) to foreign investors.

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The e-commerce industry of Indonesia is expected to grow sharply in 2016 on the back of the continued expansion of Internet and smartphone penetration. The Indonesian E-Commerce Association (idEA) estimates that the number of Indonesian online shoppers will hit 10 million in 2016. As such, earnings in Indonesia's e-commerce industry is estimated to more than double to IDR 20 million (approx. USD $1.5 billion) next year from an estimated IDR 9 trillion in 2015.

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Based on a recent survey conducted by Google, online transactions in Indonesia continue to rise (particularly the purchase of goods through mobile gadgets) despite the nation’s economic slowdown and weak rupiah (which makes imported products more expensive). Henky Prihatna, Google’s Country Head for Indonesia, said the survey shows that Indonesian consumers are increasingly using Internet to purchase consumer goods.

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eBay Inc, a US-based global commerce platform and digital payments leader, plans to raise its stake in Indonesian e-commerce firm Metra Plasa from 40 percent to 49 percent. Currently, 60 percent of Metra Plasa is owned by Indonesia's largest telecommunication and network provider Telekomunikasi Indonesia (Telkom). Telkom’s stake will thus decline to 51 percent. In 2012, eBay and Telkom (through Telkom’s subsidiary Multimedia Nusantara) established a joint venture to operate Metra Plasa.

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Indonesia's e-commerce industry (online shopping) is expected to continue its rapid growth in the years ahead as more and more Indonesians have access to Internet amid the country's rising per capita GDP (resulting in a rapidly expanding middle class). Indonesians' purchasing power has expanded quickly and in combination with the popularity of the smartphone, people are increasingly purchasing consumer goods online. This was one of the conclusions drawn in an online business insight discussion organized by Google and Blibli.com in Jakarta.

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As we all know, the Internet is among the greatest revolutions in human history. Its impact on every aspect of life is huge, transforming how we communicate, how we access information, how we conduct business, and how we engage with the world outside. Not only does the Internet introduce profound changes, but these changes (can) also come in a very rapid manner.

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The COVID-19 outbreak has continued to impact digital media consumption worldwide. Internet platforms, such as e-commerce, now play a pivotal role in our daily lives. On the bright side of current situations, e-commerce is growing all over the world, including in Indonesia. This is because behavioral shifts amongst Indonesians to choose online platforms as their safest place to conduct their daily activities, such as shopping, working or just meeting with some friends.

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It is something the central government of Indonesia has been planning and weighing for several years now, but the coronavirus (COVID-19) crisis seems to have sped up the efforts. Per 1 July 2020, the Indonesian government imposes a 10 percent value-added tax (VAT) on sales of imported digital products and services.

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E-commerce – which refers to the activity of electronically buying (or selling) products through online services or over the Internet – has been developing rapidly in Indonesia over the past decade. More and more Indonesians have started to shop online, forcing many offline retail players to adapt and innovate their business models in order to survive in this new and challenging environment where two newcomers, both tech startups and both e-commerce platforms, have developed into a unicorn (Tokopedia and Bukalapak) which is a startup that is valued above USD $1 billion.

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Are you looking for the latest products and services to improve your e-Commerce business? Or do you plan to promote brand awareness for your latest technology and solution in the field? Join us at the 4th e2eCommerce Indonesia Conference & Exhibition on 25-26 September at Balai Kartini, Jakarta, this year.

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Indonesia, the world’s 16th-biggest economy, recently joined the “trillion-US dollar club” having a nominal gross domestic product (GDP) of USD $1.01 trillion. Meanwhile, the country’s annual economic growth has been going at a pace of around 5.0 percent over the past couple of years.

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It came as a big surprise to us. Only three days before the new and somewhat controversial e-commerce tax regulation would come into effect, Indonesia’s Finance Ministry decided to delay its execution.

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While reforms related to Indonesia’s corporate income tax rates remain in the planning stage, there is a new important regulation that will come into effect per 1 April 2019. Through Finance Ministry Regulation No. 210/PMK.010/2018 on the Taxation of Trade Transactions through Electronic System or E-commerce, which was signed on 31 December 2018, Indonesia will require e-commerce merchants (sellers) to share data with tax authorities and pay VAT and income taxes.

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Indonesia has four unicorns – a term that refers to startup companies that are valued over USD $1 billion – namely: (1) ride-hailing and logistics company Go-Jek, (2) e-commerce operator Tokopedia, (3) e-commerce operator Bukalapak, and (4) airline ticketing and hotel booking services Traveloka.

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Health awareness in Indonesia is at a very low level, especially in the cities, as Indonesians tend to eat too much unhealthy food and exercise too little. Therefore, health awareness is something that needs to be encouraged in Indonesia. However, government programs - such as the "Healthy Four, Perfect Five" principles - seem to have limited effect and therefore there is plenty of room for the private sector to encourage consumers to lead a healthier lifestyle. In fact, encouraging a healthier lifestyle can become part of a business model.

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