According to the latest market research study published by P&S Intelligence, the Indonesia e-commerce market is set to expand from a robust USD 75.1 billion in 2024 to an impressive USD 85.8 billion by 2025, ultimately reaching USD 230.5 billion by 2032, driven by a powerful 15.2% CAGR during 2025–2032. Key growth catalysts include the dramatic rise in smartphone adoption, tech‑savvy urban consumers, and improved internet infrastructure. With smartphones facilitating over 70% of online transactions, major platforms like Shopee and Tokopedia are strategically positioned to capitalize on this trend.
Government initiatives are also playing a pivotal role. The rollout of the Quick Response Code Indonesia (QR‑IS) and enhanced data‑protection regulations are fostering safer digital payment ecosystems. Additionally, the widespread adoption of digital wallets—led by GoPay, DANA, and OVO—is reshaping consumer behavior by offering seamless, secure, and efficient transaction options.
Key Insights
- The electronics
segment captured the largest share (35%) of e-commerce revenue in 2024,
with roughly one‑third of consumers purchasing laptops, smartphones, and
accessories online.
- The apparel
& footwear category is the fastest‑growing, buoyed by social commerce
and mobile‑first consumer trends.
- B2C
platforms dominate the market with a 75% share in 2024, propelled by
robust internet access, smartphone adoption, and aggressive promotions
like flash sales, free shipping, and cashback offers.
- B2B
e-commerce is the fastest-growing platform segment, with a 15.9% CAGR, as
SMEs increasingly embrace digital solutions for procurement and supply‑chain
efficiency.
- Digital
wallets held the largest payment share (45%) in 2024, supporting 40% of
online transactions thanks to user‑friendly QR‑based payments.
- The BNPL
(buy‑now‑pay‑later) option is expanding fastest among payment methods,
with 68% of users adopting installment plans.
- Marketplace
models led in business structure, holding a 70% share in 2024, with
approximately 47% of shoppers purchasing through multi-seller platforms.
- The hybrid
model is growing fastest, driven by platforms like Bukalapak and Shopee
that offer both marketplace breadth and inventory‑led quality, with a
16.1% CAGR.
- Standard
delivery services account for 60% of shipments, while same‑day/next‑day
delivery is the fastest-growing service segment—around 80% of consumers
expect rapid shipping.
- Social
commerce and live‑stream shopping are reshaping user engagement: about 60%
of consumers purchase via live‑stream, and 70% of those aged 18–34 shop
online regularly.
- Strengthened
trust in digital security is fueling adoption: 48% of consumers cite
secure payments as a reason to shop online, though 78% remain concerned
about data privacy. In response, companies are implementing improved
return policies, real‑time delivery tracking, advanced cybersecurity
measures, and comprehensive government‑backed data protection initiatives.
- The market remains fragmented geographically, characterized by large national players (e.g., Shopee, Tokopedia, Lazada) and numerous regional champions that cater to culturally diverse customer preferences.
- Strategic investments and partnerships—most notably TikTok’s USD 1.5 billion investment in Tokopedia in December 2023 and the GoTo merger in May 2021—are accelerating growth, innovation, and competitive positioning in Indonesia’s dynamic e-commerce landscape.
