Summarizing Indonesia's E-Commerce Business Conditions in the First Half of 2017

Business E-commerce began to peak in Indonesia's digital landscape since at least 2014. Names such as Bhinneka, Lazada, Tokopedia, Blibli, and Bukalapak are increasingly being heard, in line with massive marketing through various channels, such as television, to touch various groups of people. External factors, such as logistic and regulation, also supports the creation of a more conducive e-commerce business.

The dynamics between business players occur when large investments pour in, customer acquisition is intensively carried out in various ways. Just say it Shopee, online marketplace made by Sea (formerly Garena) with the ambition to become the largest C2C marketplace in Indonesia. It's been there before SaleStock which carries a similar concept. Shopee is intensively conducting customer acquisitions, incentives such as free shipping and massive publications are carried out by Shopee, led by Chris Feng, armed with his experience in Zalora and Lazada.

[Also read: GDP Venture Participates in New Funding for Shopee Parent Worth 7 Trillion Rupiah]

Acquisition Lazada by Alibaba also brought tremors to local players. Despite the existence of Alibaba as a giant E-commerce has not yet appeared to be present in Indonesia, but Lazada's business in Indonesia is growing rapidly. Based on data SimilarWeb, Lazada is still the highest in terms of web visits, reaching 58,3 million in the first quarter of 2017. Still above Tokopedia as a local player who is predicted to be the domestic champion with the number of visits reaching 50,6 million.

User acquisition is everything, when now every platform has offered almost the same service and product advantages.

business ruler E-commerce world

Bringing the inventor into the ranks of the people richest in the world, even if only for a few moments, it wouldn't be wrong if Amazon was placed at the top level of players E-commerce the world, although its business lines eventually develop in various directions. The same pattern is followed by Chinese giant Alibaba, debuting from an IPO with the service E-commerce now business control is carried out in various business lines, from logistics to providing cloud computing services. Both are ready to be present and dominate the market in Southeast Asia.

JD.com doesn't stay silent, it's rumored to be "scrambled" with Alibaba, finally JD.com is reportedly successful bring Tokopedia. The other goal is the Indonesian market. If you look at the results of Google and Temasek research, the potential E-commerce in Southeast Asia will grow to $87,8 billion in 2025. The projected growth is around 3,8 million new users per month. Indonesia will contribute half of the total value, becoming a fantastic opportunity as well as a challenge.

[Also read: Seven Main Points Composed in the E-Commerce Roadmap]

Business conditions E-commerce domestic

In Indonesia itself, the government publish Presidential Regulation No. 74/2017 concerning the Roadmap of the National Electronic-Based Trading System (E-Commerce Roadmap) for 2017-2019. It contains 26 programs that must be realized by the government related to digital business, including regulations on funding, taxation and others. Indonesia targets to become the largest digital economy country in Southeast Asia by 2020 with a value of US$130 billion.

According to the Minister of Communication and Information, Rudiantara, the Presidential Regulation is a new way for the government to clarify the direction of the rules.

According to research conducted by iPrice on player comparison E-commerce in Indonesia, Tokopedia is always in the top position of various parameters Indonesia E-Commerce Map, namely visitors per month, application installations, Twitter activity, Facebook activity and also employees.

Interesting trends that exist, players E-commerce -specifically online marketplace—trying to provide service all-in-one on the service. The digital wallet model is also one of the massive innovations being developed. A common thread can be drawn from the direction of its innovation, which is to make users feel at home to fulfill all their needs in one place by accommodating the circulation of money on the same platform.

Payments, logistics and segmentation are things that service providers are trying to optimize E-commerce in Indonesia to be a winner in their own country. Consolidation and acquisitions are expected to continue to be widely heard until the end of the year. After Alfacart and Chipika, who else will raise the white flag this year?