BPS Survey: Indonesian Businesses Utilizing E-commerce Remain Limited

A survey by Indonesia's Central Bureau of Statistics (BPS) titled *eCommerce Statistics* reveals that only 34.10% of Indonesian businesses were selling on e-commerce platforms as of September 15, 2022. The remaining 65.90% of businesses still operated offline or conventionally.

The survey results state, "This indicates that the number of businesses receiving orders or selling goods/services via the internet in Indonesia remains relatively low."

Nevertheless, the percentage of Indonesian businesses on e-commerce platforms increased compared to the previous year. On December 31, 2021, only 32.23% of Indonesian businesses were present on e-commerce platforms.

The BPS survey indicates that e-commerce businesses remain concentrated on Java Island, mirroring the previous year's findings. In 2021, out of 2,868,178 e-commerce businesses, 1,497,655 (52.22%) were located on Indonesia's most populous island.

According to the BPS, this is understandable given that Java Island houses the largest market share, production centers, and adequate internet infrastructure.

Of all businesses that did not engage in e-commerce in 2021, 71% cited a preference for direct, offline sales. Other reasons included lack of interest in online sales (38.74%), insufficient knowledge or skills (21.46%), and other reasons (6.81%).

The scope of the *2022 eCommerce Statistics* survey encompasses businesses that used the internet to receive orders or sell goods and/or services during 2021. The first stage involved listing 1,581 selected census blocks across 34 provinces in Indonesia, covering 159 regencies/cities. Subsequently, interviews were conducted with 15,677 selected businesses as part of the sample.