The Rise of E-Commerce in Indonesia: Stats and Factors Driving the Industry

The popularity of e-commerce platforms in Indonesia has led to an increase in package deliveries to homes, with a growth rate of 12.8% year-on-year, touching 178.9 million people in 2022. The nominal amount spent on online shopping in Indonesia in 2022 was estimated to be $55.97 billion, with the largest shopping category being electronics. The increase in e-commerce spending was driven by the fast-paced digitalization of businesses, the pandemic, and the rise in the number of internet users in Indonesia.

The continued growth of e-commerce in Indonesia is because of the change in consumption patterns and a population full of Gen Z and Millennials who are adaptive to technological developments. As businesses turn to digital platforms, e-commerce transactions have become the biggest contributor to the digital economy in Indonesia. In 2022, the GMV of the e-commerce sector was estimated to be $59 billion, which takes up 76.62% of Indonesia’s total digital economy.

However, as e-commerce expands, plastic waste from package packaging is also mounting. In 2019, the global e-commerce industry used around 2.08 billion pounds of plastic packaging.

Overall, the e-commerce industry in Indonesia is rapidly growing and contributing significantly to the country’s digital economy. However, there is a need to address plastic waste resulting from e-commerce transactions.