The island nation of Indonesia is home to more than 200 ethnic groups1. With the world’s fourth-largest population and a GDP of over $1 trillion2, this archipelagic country boasts the biggest economy in Southeast Asia – a region brimming with stunning natural resources and business opportunities. Although more than 40% of the Indonesian labor force works in agriculture, the largely agrarian economy has experienced steadily improving living standards as cities modernize and the government expands infrastructure into rural areas3. All this makes Indonesia an attractive new market for expanding ecommerce enterprises.

Indonesia at a Glance

  • Population: 267,663,4352
  • GDP per capita: $3,893.592
  • Internet adoption: 54%2
  • Bank account adoption: 49%2
  • Credit card adoption: 4%4

Current State of the Indonesian eCommerce Landscape

Indonesia is the least developed ecommerce market in Southeast Asia, according to Forbes5. As of 2019, slightly more than 50 percent of Indonesians had internet access6, but this percentage will increase quickly as the government continues to develop regional infrastructure.

The Indonesian economy is projected to grow from around USD 7.8 billion in 2015 to USD 78.8 billion in 2025, with the strongest growth in ecommerce7. Travel, fashion, and homewares are currently three of the hottest online categories, with Shopee, Tokopedia, and Bukalapak being the three most popular ecommerce websites8. With more than 6,000 inhabited islands, delivering goods is more challenging in some areas of Indonesia, especially when delivery services must traverse mountains and large bodies of water9. Despite the challenges, a combination of improving local infrastructure, expanding internet penetration, and new financial technology make the Emerald of the Equator an enticing opportunity for intrepid companies.

Indonesian eCommerce – Key Data Points9

  • Business to consumer ecommerce market value: $13.6 billion
  • Mobile commerce market size: $7.1 billion
  • Primary mobile sales channel: apps ($5.3 billion in sales)
  • Top three online merchant segments: Travel, fashion, and homewares

Preferred eCommerce Payment Methods by Value

Although most online purchases are made using a credit card, overall credit card penetration is only 0.07 per capita9. This creates a significant business opportunity for ecommerce retailers that can tap into this growing Southeast Asian market by offering locally preferred payment methods.

Indonesian’s Favorite Payment Methods

Pie chart showing preferred payment methods in Indonesia

Snapshot: Which payment methods have you used to pay for goods or services in the last month?

A bar graph showing popular payment methods in Indonesia.

Forge Ahead with the Power of Fintech

When moving into the Indonesian market, it’s crucial to offer local payment options and prepare to accommodate local preferences. The percentage of Indonesia’s population that shops online is certain to rise along with incomes and expanding internet access. According to Google and Temasek, the ecommerce market is projected to be worth $53 billion by 20259 — up from 13.6 billion today8. There are major opportunities waiting in Indonesia for businesses equipped with the right financial technology to collect and distribute payments cross-regionally like Rapyd Collect and Rapyd Disburse. With Rapyd, you can quickly optimize disbursement and checkout experiences everywhere you do business.


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