Chinese e-commerce giants make a big push into Indonesia

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Indonesia e-commerce compound annual growth rate of about 17%, it is expected that the next ten years is the "Golden Decade", Ramadan during the e-commerce consumption scale up to 70 billion to 73 billion U.S. dollars, per capita consumption of about 300 U.S. dollars, per capita disposable income of 2,869 U.S. dollars in 2023, the consumption potential is huge.Indonesia has 215 million Internet users, 70% are young people under 30 years old, they have a strong demand for cost-effective, personalized goods, and consumption is highly influenced by social interaction, which brings a traffic dividend for e-commerce. The government's strong support for infrastructure and communications infrastructure has boosted e-commerce market penetration and development rate, with e-commerce transactions increasing by 21.4% year-on-year during Harbolnas 2024 and revenues amounting to US$1.93 billion, and the size of the digital economy is expected to increase to US$366 billion in 2030 from US$146 billion in 2025, accounting for about 18% of GDP.

neverthelessTikTok Shophad shut down, Temu's unsuccessful entry, and local platform Bukalapak's closure of its physical e-commerce business indicate the difficulty of localization and integration; global e-commerce platforms have completed systematic integration and competition is fierce, like TikTok Shop needs to overcome cultural differences and cater to the needs and preferences of local consumers; 76% Indonesian consumers prefer local brands when buying beauty and fashion products, and 80% prefer local fashion brands, e-commerce platforms need to help the rise of local brands, adjust their strategies, link with local brands and provide customized services to gain market share.

# Chinese Capital Express