With a growing connectivity and a large population that is extremely active online, Indonesia is one of the world’s leading countries for the use of digital technologies. Through Internet, mobile, e-commerce or social media, digital in Indonesia is a very attractive market both for its size and growth potential.
The latest figures available for the penetration of Internet, mobile and social media show that Indonesia’s large population is gradually adopting online technologies and already a massive market for mobile, fomenting an attractive ecosystem and market for mobile apps.
The following presentation highlights the details of various digital trends in Indonesia and its enormous potential for growth: especially the compared use of the different digital devices, mobile behaviors, e-commerce, leaders of the different digital industries, investments and advertising.
7 insights on digital in Indonesia – summary
- Indonesia overview – slide 5
- Audience behavior – slide 10
- Mobile behavior – slide 14
- E-commerce landscape – slide 18
- Industry landscape – slide 25
- Investment related – slide 30
- Advertising industry – slide 36
- Things to know before entering the Indonesian market – slide 40
Key points on the use Internet and digital in Indonesia
Indonesia has the largest population of Southeast Asia but its level of economic development and penetration of digital technologies, however, is rather on the low side, making it comparatively more interesting for growth perspectives.
With a penetration of about 35% in 2015, the number of Internet users in Indonesia is expected to reach a share of 63% of the population in 5 years, representing about 160 million Internet users in 2020.
Indonesia is a “mobile-first” country with 61% Internet accessibility through mobile and 39% through desktop. When it comes to media consumption, Indonesia has the world’s most important total daily screen minutes of 540 minutes/day, with an important share of mobile devices.
- 132 min/day of Television
- 117 min/day of PC / laptops
- 181 min/day of smartphone
- 110 min/day of tablets
- total mobile devices (smartphone + tablets): 291 min/day
For more information on digital use is ASEAN countries, check digital numbers in Southeast Asia.
- The number of online shoppers is expected to reach 8.7 million in 2016, with a growth of more than 17% compared to 2015.
- Online sales volume are set to reach 4.49 billion USD in 2016, representing 0.8% of total retail sales, and a growth of more than 26% compared to 2015.
- Top products bought online include clothing (particularly for female buyers), handphones, plane tickets and laptops.
- The low penetration of credit cards in Indonesia makes credit cards payments online rare. Bank transfers and cash-on-delivery are the prefered methods of payments.
Top Indonesian websites
After the leading websites from the US (Google, Facebook, Youtube, Yahoo, Blogspot), the following 5 Indonesian websites are the top ranking in traffic in Indonesia, according to Alexa.
- Kaskus – forum / community and e-commerce
- Liputan 6 – news / media
- Detik – news / media
- Bukalapak – e-commerce
- Kompas – news / media
When it comes to startups and funding, the number of deals and total funding has exploded in 2015, as more and more companies and venture capitalists realize the enormous potential of Indonesia.
Advertising also benefits from this growing trend in the use of digital technologies in Indonesia. The industry is seeing a double digit growth year-on-year in advertising spending, expected to reach 15 billion USD in 2016. Digital is benefiting the most with a growth of more than 50% for online advertising year-on-year from 2013 to 2018.
Presentation published in February 2016 by Danny Wirianto from gdp ventures, realized with the data from several sources