E-commerce Indonesia: Heading to be the biggest digital economy country
• 02 Dec 2016
Presiden Joko Widodo mendengarkan penjelasan Menteri Komunikasi dan Informatika, Rudiantara (ketiga kiri) didampingi Menteri Koordinator Perekonomian Darmin Nasution (kiri) tentang Program e-commerce bagi UMKM saat meninjau stand Nurbaya Initiative dan PT Kantor Pos di Desa Larangan, Brebes, Jawa Tengah, Senin (11/4). ANTARA FOTO/Oky Lukmansyah
Indonesia is the sixth biggest country with e-commerce transaction up to US$2 billion
Bareksa.com - Business system of e-commerce in Indonesia is growing fast and promising. Online business has been developing massively in last years. The penetration of smart phone makes people easier to go online shopping.
Indonesia e-commerce market has a potential to be the biggest market in the world, according to Mckinsey & Co, a consultant company. Indonesia is the sixth biggest country with e-commerce transaction up to US$2 billion.
In order to support the e-commerce market and to increase the internet users, Indonesia government is building Palapa Ring project. This project will cover regions in the west, the central and the east of Indonesia. The project is expected to raise online retail industry to 5 percent by 2020.
Mckinsey was forecasting around 90 million Indonesian would become a very consumptive society in 2030 and 70 percent of Indonesian would live in urban areas. Therefore, business opportunities widely opened.
Digital Economy Country
E-commerce business is not only about online transaction, but also involving a business networking, for example logistic services, telecommunication provider and software. This is why e-commerce industry should be monitored closely to increase the national economic growth.
The government is targeting Indonesia to be the biggest digital economic country in Southeast Asia in 2020. Besides planning E-commerce Roadmap, the government is expecting to get 1.000 new techno-pruners by 2020 with business valuation around US$10 billion.
In the last few years, new entrepreneurs in e-commerce sector are growing up with fresh thoughts and innovations but unfortunately less access or funding to expand their business. Therefore, government will provide assistance for them by collaborating with experienced techno-pruners, data center, and providing financing. The government expects the small medium enterprises could expand their business by reaching the overseas market.
Giving the stimulus to e-commerce entrepreneurs in every level, Indonesian government needs support from the people, private sector, media and non-profit organization to make the e-commerce as a national campaign.
Indonesia must learn from China which has released Five Year Plan for the Development of e- Commerce in 2011. Over the last three years, the volume transaction of e-commerce business in China has been increasing around 10,1 percent from total selling retails or around 426 billion US dollar.
Communication and Informatics Minister, Rudiantara, said the technology should give a positive impact and value added to empower the economy nationally and locally.
“Technology, in particular internet, broadcasting or telecommunication should bring positive impact to empower local economy,” Rudiantara said.
Communication and Informatics Ministry has been seeking to push the stakeholders in communication and informatics sector to support the empowerment people’s economy.
Revolution of online business in Indonesia is predicted to contribute positively in gross domestic product around 22 percent by 2020. Based on the improvement in China, it is possible that the same success will be faced by Indonesia, especially China and Indonesia have the similar characteristic.