How Big Is Indonesia's E-commerce Market?

Indonesia's e-commerce market is projected to account for 52 percent of Southeast Asia's e-commerce sector. According to Nielsen's presentation titled "Indonesia Ocean of Opportunities: Overcoming Dead Win and Riptide 2017," Indonesian e-commerce is expected to reach US$46 billion (equivalent to Rp 612 trillion) by 2025, a significant increase from US$1.7 billion in 2015.

The substantial growth is driven by a large middle class, increasing internet access, the expansion of smaller cities, and limited access to traditional retail markets. In 2015, Indonesia's e-commerce transactions represented less than one percent of total retail sales; however, this is projected to increase to 8 percent by 2025.

Total e-commerce across the six ASEAN member states is expected to reach US$87.8 billion by 2025, compared to just US$5.5 billion in 2015. Furthermore, digital transactions in these countries will collectively exceed US$4 billion.