Indonesia younger generation have change the shape of Indonesia through e-commerce.

1. +
How E-commerce Shape
the Culture in Indonesia
By idEA (Asosiasi E-Commerce Indonesia)
Presented by Mr. Daniel Tumiwa, September 30, 2015
Indonesia id-byte 2015
@kelikharjono

2. +Indonesia is among the biggest e-commerce market in SEA
Market Size
($ billion, 2013)
Vietnam
• 91 million inhabitants
• 40 million internet users
• 24 million digital buyers
Thailand
• 65 million inhabitants
• 19 million internet users
• 14 million digital buyers
Malaysia
• 30 million inhabitants
• 20 million internet users
• 16 million digital buyers
Indonesia
• 248 million inhabitants
• 39 million internet users
• 5 million digital buyers
Singapore
• 5.5 million inhabitants
• 4 million internet users
• 3.2 million digital buyers
The Philippines
• 97 million inhabitants
• 36 million internet users
• 25 million digital buyers
2
Note : Market Size figures are rounded
Source : International Monetary Fund
$0.8 $0.9
$1.3 $1.3
$1.7 $1.0
$7.0ASEAN 6
21.5%26.4%
53.3%
58.2% 25.8%
2%

3. +But it is still way smaller than these e-commerce giants of the world
Market Size
($ billion, 2013, % of global total)
EU 5
• 317 million inhabitants
• 247 million internet users
• 180 million digital buyers
Japan
• 117 million inhabitants
• 110 million internet users
• 86 million digital buyers
United States
• 320 million inhabitants
• 269 million internet users
• 197 million digital buyers
China
• 1,368 million inhabitants
• 626 million internet users
• 309 million digital buyers
ASEAN 6
• 537 million inhabitants
• 158 million internet users
• 87 million digital buyers
3
Note :
Market Size figures are rounded
Source : International Monetary Fund
EU 5 includes The European Union’s Five Largest Economies : Germany,
France, The UK, Italy, Spain
$230
19%
$119
10%
$395
32%
$181
15%
$7
0.6%
World
$1,221
Rest of
the World
$289
23.4%

4. +The growth rate of our income per capita is far higher than
the global average
4
2%
4.10%
4.60%
4.10%
5.70%
6.30%
1.50%
2.70%
2.10%
1.40%
3.20%
2.90%
1.20%
2.30%
1.30%
0.80%
2.00%
1.50%
Global
average
Indonesia Thailand The Philippines Malaysia Singapore
2009-14 2014-19 2019-24
Note :
Source : International Monetary Fund

5. +Indonesia economic growth will be fueled by consumer
spending as the middle class continue to rise
5
By 2020 the mass-consuming class* will increase to 53 million households
*Mass-consuming class is defined as those households with annual disposable income between USD5-30k per annum
At market exchange rates and 2010 constant price
Source : Accenture; Oxford Economics
2010 2020
US$, 000s
50+
30-50
15-30
5-15
0-5
22%
65%
By 2020, 65% of Indonesia’s households
are forecast to be in the US$5-15
disposable income band and 22% in
the US$15-30 band

6. +Indonesia is urbanizing at a rapid clip. By 2020, Indonesia will
be dominated by urban dwellers
6
Source : Euromonitor, “Indonesia in 2030: The Future Demographic”, August 2010
0
50
100
150
200
250
300
2000 2005 2010 2015 2020
Urban RuralTotal Population, In
Million
42%
46%
50%
54%
57%

7. +Sumatra and Sulawesi are the next regions of urban growth
7
Source : Euromonitor, “Indonesia in 2030: The Future Demographic”, August 2010
Total Population, In
Million
Top 10 biggest cities by population size in 2010 and prediction for 2020
Sumatra
Kalimantan
Jawa
Sulawesi
Jakarta
Surabaya
Bandung
Bekasi
Medan
Tangerang Depok
Semarang
Palembang
Makassar
2010
2020

8. +In compare to other countries, majority of population in
Indonesia are still purchasing offline, but that’s about to
change
8
Source : Frost & Sullivan, A.T. Kearney Analysis
Percent of retail sales made online
(2014, % of total sales)
7.80%
7.20%
5.80%
4.50%
Europe China USA Singapore Malaysia Thailand The
Philippines
Indonesia Vietnam
Around or below 1%

9. +Many Indonesian are still trapped in these misconception
9
Perception Vs. Fact
What they think/ want The reality
I’d like to touch/ try the goods before
buying them (41%)
Return policies are being offered
I’m not clear on warranty (38%) Warranty guidelines are mostly clear
I do not have a credit card (35%) Multiple payment options: credit card,
debit card, bank transfer, cash on
delivery, rekber

10. +By 2017, we could be the biggest e-commerce market in
SEA
10
Source : eMarketers; AT Kearney Analysis
Note: ASEAN 6 includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam. EU 5 includes the European’s largest
economies: Germany, France, the UK, Italy, and Spain
1.30 1.30 1.00
1.70
0.90 0.80
Indonesia Malaysia The Philippines Singapore Thailand Vietnam
25.00% 25.00%
11.00%
10.00%
6.00%
China Asean 6 United States EU 5 Japan
25-30
10-15
8-12
7-10
12-15
5-7
Market Size
($ Billion)
Estimated e-commerce growth rate
(2013-2017)

11. +If we do it the right way, we could unleash Indonesia and
SEA as the next e-commerce super power
11
Source : AT Kearney Analysis
2000 2005 2010 2015

12. +The e-commerce boom will also impact financial industries,
as people opt for more convenience transaction method
12
COD ATM Transfer
Alternative Trx
GNNT Society
Less Cash Society
2013
62%
2014
25% 2013
66%
2014
41% 2013
10%
2014
12%
• Internet Banking
• Rekber
• SMS/Mobile Banking
• Emoney
• Debit Card

13. +The GOAL
13

14. +
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