E-Commerce Booming in Indonesia, Survey Finds

E-Commerce Booming in Indonesia, Survey Finds

By Farid Firdaus

 on 10:43 am January 29, 2014.
Up to 76 percent of Internet users in Indonesia shopped online over the past year and spent Rp 5.5 million ($450) annually on average, a survey has revealed.

The survey conducted by Greenberg Brand Strategy for credit card company Visa showed that online shoppers were now younger and spent more money on shopping websites.

Almost half, or 48 percent, of the online shoppers were in the 18-to-30-year age group and earned a higher income.

“E-commerce in Indonesia is growing rapidly as the number of Indonesian people connected to the Net, especially through smartphones, is growing,” said Ellyana Fuad, the president director of Visa Indonesia.

“The online market expansion and the growing number of online retailers last year clearly showed that there had been changes in young people’s online shopping behavior.”

The survey categorized the respondents based on the quantity of products and services ordered online and identified three types of online shoppers.

The first type is the “mature” shopper, comprising 48 percent of all Indonesian online shoppers. They spend Rp 6.5 million on average per year, with the majority of them spending money on travel, retail and other services.

The second category is the emergent shopper, making up 23 percent and who only purchases one or two types of goods online. This group spends about Rp 4 million every month.

The third category is the evolving type, which accounts for 29 percent of shoppers and spends around Rp 5 million per month to purchase three to four types of goods online.

Experts have pegged the value of Indonesia’s e-commerce potential at between $10 billion and $12 billion in 2015, spurred by the growing number of smartphone users connected to the Internet.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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