Strong growth in e-commerce
Traditional brick and mortar retailers in Indonesia are facing growing pressure to strengthen their online channels in order to catch up with tech-savvy consumers amid rapid growth of pure e-commerce companies, gunning to enjoy a piece of the expanding middle class and increasing smartphone penetration. Estimates and forecasts on the size of the market in Indonesia vary, but global consulting firm Bain & Company estimated that Indonesia already has approximately 51m of digital consumers, or roughly 20% of the country’s 250m population, while technology market research firm International Data Corporation expects the market size to reach $5bn this year from $2bn in 2014.
