Indonesia's E-commerce Sales Projected to be Largest in Southeast Asia in 2021

The social restrictions imposed during the COVID-19 coronavirus pandemic have fueled an e-commerce boom globally, including in Southeast Asia. Market research firm eMarketer estimates that e-commerce growth in Southeast Asia reached 14.3% in 2021.

E-commerce retail sales in the six Southeast Asian countries are projected to reach US$45.07 billion in 2021. Of this amount, US$20.21 billion comes from Indonesia, making it the largest in the region.

Thailand is in second place with projected e-commerce retail sales of US$7.84 billion this year. This is followed by Malaysia and Vietnam at US$7.4 billion and US$4.38 billion respectively.

E-commerce retail sales in Singapore are estimated at US$3.47 billion. Meanwhile, projected e-commerce retail sales in the Philippines are US$1.76 billion.

The Philippines is projected to have the highest growth in e-commerce retail sales in Southeast Asia this year, at 20%. This is followed by Vietnam with 18% growth.

E-commerce retail sales in Indonesia and Malaysia both grew by 15% this year. Meanwhile, Thailand and Singapore increased by 12% and 7% respectively.

However, eMarketer notes that e-commerce in Southeast Asia only contributes 4.6% of total retail sales, which are estimated at US$970.83 billion in 2021. This means that the potential for e-commerce growth in the region remains significant.