Challenges Faced by Indonesian E-commerce Businesses in 2023

Data from the Central Statistics Agency (BPS) shows that there were 3.81 million e-commerce businesses spread across various regions of Indonesia in 2024.

The existence of e-commerce has made it easier for consumers to meet their needs. However, domestic e-commerce businesses have faced several challenges in operating their businesses.

"The biggest main obstacle for e-commerce businesses in operating their businesses during 2023 was a lack of demand for goods or services, amounting to 41.24%," wrote the BPS in a report titled *2023 E-commerce Statistics*.

The next most common challenges were a lack of capital (29.03%) and a shortage of skilled labor (11.48%).

Some local e-commerce businesses were also hampered by limited delivery services (3.80%); fraud in the buying and selling process (2.26%); limited internet access (2.14%); and other obstacles (10.01%).

BPS also recorded that the majority, or 33.13%, of e-commerce businesses in Indonesia operate in the wholesale and retail trade, repair, and maintenance of automobiles and motorcycles sector.

BPS conducted this survey on a sample of 40,011 e-commerce businesses spread across 38 provinces and 365 regencies/cities. The sample in this survey comprised businesses that used the internet to receive orders or sell goods/services during 2023.