Leading e-commerce segments Indonesia 2022, by market share

According to a report published by PPRO, the fashion segment accounted for around 30 percent of the e-commerce market in Indonesia as of 2022. The electronics and media segment followed, with a market share of 23 percent.

The rise of e-commerce in Indonesia

Along with the growing internet penetration in Indonesia, the coronavirus (COVID-19) pandemic has catalyzed the growth of e-commerce in Indonesia. During the pandemic, many consumers turned to e-commerce to get products and services due to extensive social and mobility restrictions imposed by the government. E-commerce has now become increasingly embedded in the daily lives of consumers in the country. A recent survey on online shopping frequency indicated that around 24 percent of Indonesian consumers shopped online once a month, and around 16 percent did so several times a week. In 2023, the e-commerce market in Indonesia was valued at 62 billion U.S. dollars and is expected to reach 160 billion U.S. dollars by 2030.

Rising data privacy concerns

Along with the increasing use of e-commerce in Indonesia, many Indonesian consumers are increasingly concerned about data breaches and privacy policies. While many consumers do not mind sharing very basic personal info to ensure smooth delivery, many consumers are unaware of the large quantity of personal information collected by e-commerce companies. This is one of the main factors discouraging consumers in Indonesia from shopping online. Stricter cybersecurity laws are needed to create a secure e-commerce environment for both businesses and consumers.