As the fourth most populous country in the world, Indonesia’s e-commerce market has also developed rapidly in recent years. Population size and spending power are one of the factors that determine the e-commerce market. So, in terms of population, does the Indonesian e-commerce market have advantages? So, let’s take a look at the demographic profile and advantages of the Indonesian e-commerce market.
1. Indonesia’s population profile
Indonesia is the fourth most populous country in the world, with a population of approximately 270 million. Indonesia has a younger age structure than other large countries. According to data from international organizations, more than 25% of Indonesia’s population is under the age of 15 and will become the country’s main consumer in the next few decades.
2. Indonesia’s population structure
Indonesia’s population structure is relatively balanced, as shown in the figure below. According to statistics, the top three provinces in terms of population size are West Java in the west of Java Island. , Central Java and East Java, accounting for 36% of the country’s population. At the same time, densely populated cities such as the capital Jakarta, Sulawesi and Banten are also popular destinations for e-commerce companies looking for development opportunities in Indonesia. Therefore, if you want to start an e-commerce business in Indonesia, you first need to understand the local population distribution and consider positioning your market based on the needs and spending power of different regions.
3. Consumption Capacity
In addition to the size of the population, a country’s consumption capacity is also a constraint. Indonesia’s consumption power is gradually improving. In recent years, with Indonesia’s economic growth and accelerated urbanization, the economic level has improved significantly. At present, Indonesia’s middle class has begun to grow and has gradually become the main force of consumption in the Indonesian market. In addition, the rapid development of mobile payments and e-commerce over the past few years has also facilitated Indonesian consumers’ shopping experience. According to Google and AT
According to Kearney’s research, Indonesia’s e-commerce sales are expected to reach US$53 billion in 2025, mainly due to the popularity of mobile payments and e-commerce, as well as the shopping trends of young Indonesians.
4. Internet penetration rate
Internet penetration rate also has an important impact on the development of the e-commerce market. Currently, Indonesia’s Internet penetration rate is also increasing year by year. According to data, Indonesia’s Internet penetration rate is 35%, and its scale in the smartphone market is also expanding year by year. The popularity of the Internet has also continued to promote the development of the e-commerce market, and more consumers tend to purchase goods on e-commerce platforms.
Indonesia has the fourth largest population in the world, and its e-commerce market has also developed rapidly in recent years. Indonesia’s age structure is younger, indicating that there will be more consumer groups in the future. At the same time, Indonesia’s consumption power is gradually improving, and the Internet penetration rate is also increasing year by year, which will promote the development of Indonesian e-commerce. Therefore, if you want to launch an e-commerce business in Indonesia, you need to understand the local population profile, population structure, and spending power in order to formulate appropriate marketing strategies and promotion plans, find development opportunities, and obtain more business opportunities.