Indonesia's E-commerce Business Distribution 2023: Java Island Dominates

Based on a report by the Central Statistics Agency (BPS), 41.51% or 3.81 million businesses sold goods on e-commerce platforms in 2023.

This number is estimated to have increased by 27.40% compared to 2022, when there were 2.99 million e-commerce businesses.

"Technological advancements, supported by infrastructure and regulatory ease, have driven the growth and development of e-commerce businesses," wrote the BPS in its report titled *E-Commerce Statistics 2023*.

By region, the majority, or 75.04%, of e-commerce businesses in Indonesia are concentrated on Java Island.

The following is a list of the 10 provinces with the highest percentage of e-commerce businesses in Indonesia in 2023:

1. DKI Jakarta: 56.79%
2. Banten: 52.71%
3. Riau Islands: 47.82%
4. Riau: 45.23%
5. West Java: 44.55%
6. Yogyakarta: 44.51%
7. East Java: 43.24%
8. North Sumatra: 42.81%
9. East Kalimantan: 41.81%
10. Bali: 41.45%

Meanwhile, the province with the lowest proportion of e-commerce businesses is East Nusa Tenggara (NTT), at only 18.2% of the national total. This is followed by Maluku at 19.6% and Gorontalo at 20.52%.

The BPS also recorded that, by category, the majority of e-commerce businesses in Indonesia operate in the wholesale and retail trade and repair of motor vehicles and motorcycles sector, with a proportion of 33.13%.

This is followed by e-commerce businesses in the accommodation and food service sector (23.94%), the manufacturing industry (19.01%), and other services (6.61%).