Charting Indonesia's e-commerce industry as funding reaches a decade low.

Electronic trading and e-commerce, including platforms like Lokapasar, continue to show growth potential even after the removal of social restrictions. In Indonesia, the e-commerce market is largely driven by local demand and is expected to expand further. This trend is common in many developing countries, where the share of online shopping in total retail sales remains relatively small, leaving ample room for increased digital adoption. Particularly in Indonesia, e-commerce is poised to grow through deeper penetration into tier two and tier three cities, where there is significant untapped potential.

The size of Indonesia's e-commerce market is projected to increase from USD 52.93 billion in 2023 to USD 86.81 billion by 2028, with a compound annual growth rate (CAGR) of 10.4% over this period. In 2022, Indonesia was the largest e-commerce market among ASEAN nations, generating USD 51.9 billion (equivalent to IDR 778.8 trillion) in revenue, accounting for 52% of the region's total e-commerce revenue of USD 99.5 billion.