Lack of Capital is the Main Obstacle in the Development of E-commerce Businesses in Indonesia

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Nabilah Muhamad 20/09/2023 12:24 WIB

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A BPS survey shows that the majority, or 36.84%, of domestic e-commerce businesses faced challenges in the form of insufficient capital in 2022.

Challenges Faced by E-commerce Businesses in Indonesia (2022)

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Challenges Faced by E-commerce Businesses in Indonesia (2022)

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E-commerce provides consumers with ease in purchasing various necessities, thus driving the growth of online shopping trends. However, local e-commerce businesses still face several challenges in operating their businesses.

This is recorded in a report by the Central Statistics Agency (BPS) titled *eCommerce Statistics 2023*. Of the approximately 31,000 e-commerce businesses surveyed, lack of capital was the most frequently encountered obstacle.

"During 2022, 36.84% of businesses experienced a lack of capital," wrote BPS in its report.

The next challenge was insufficient demand, at 35.26%. This was followed by a lack of skilled labor at 9.98%.

In addition, some local e-commerce businesses felt their operations were hampered by limited internet access, limited delivery services, fraud in the buying and selling process, and other obstacles as shown in the graph.

This survey also found that the majority, or 43.02%, of local e-commerce businesses sell food and beverages. Others sell fashion products, household goods, and cosmetics, in smaller proportions.

BPS conducted this survey on a sample of 31,753 e-commerce businesses spread across 34 provinces and 302 regencies/cities. The sample in this survey comprised businesses that used the internet to receive orders or sell goods/services during 2022.

(Read also: 10 Provinces with the Most E-Commerce Businesses in 2022, West Java Takes the Lead)

Editor : Padjar Iswara

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Lack of Capital is the Main Obstacle in the Development of E-commerce Businesses in Indonesia

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