The Number of Players: A Major Challenge for Businesses in the Digital Industry

A World Bank survey reveals that an excessive number of players is the most challenging aspect of competition in Indonesia's digital market. At least 72% of respondents expressed concern over the sheer number of businesses in the industry.

21% of respondents worried about the market being monopolized by large players. Meanwhile, 7% of respondents considered the small capacity of informal businesses in competition to be the biggest challenge.

Furthermore, the World Bank's report highlights three frictions within Indonesia's digital economy. First, friction between online and offline merchants.

This is due to consumers shifting from offline to online channels to meet their daily needs. For example, 78% of consumers now choose to order food online.

Second, competition among online merchants. Digital platforms offer consumers a wide range of choices, leading to a "winners take all" scenario. This is evident in the fact that the top 10% of sellers account for almost 80% of total e-commerce revenue.

Third, friction between workers and employers. Digital platforms tend not to empower workers, resulting in high job demands.

In addition, Indonesia still faces a digital talent capacity gap. A recorded 60% of Indonesian workers have low levels of education.