In an interview with Indotelko, Andi S. Boediman (pictured right), the director of Ideosource and tech luminary, stated that Indonesia’s online shopping growth is supported heavily by the growth of the country’s middle class. To Indotelko, Andi said:
Online shopping is continuously growing. This year’s transaction value from online shopping has reached $266 million. This is the right time to become an online seller.
He also stated that the online transaction value in 2013 will grow 79 percent to $478 million, and in 2014 the number will eventually reach $776 million. Andi went on to say that the growth can be linked to the growth of Indonesia’s GDP from $3,469 in 2011 to $3,848 in 2012. This growth is expected to be $4,190 in 2013 and $4,568 in 2014.
Once a nation’s GDP reaches the psychologically important figure of $3,000, there will emerge a new class in society that is the consumption-oriented middle class. Research institution AC Nielsen stated that the middle classes spend around $1,000 to $2,000 monthly. Indonesia currently has the third biggest number of middle class in the region after India and China.
Although, it should be noted that the online payment infrastructure in Indonesia is a bit weak. As much as 70 percent of online shopping transactions in Indonesia are still paid with money transfer from the customers’ bank account into the sellers’, leaving only 30 percent paid with credit cards and other means of e-payments. No wonder we keep seeing the emergence of online payment companies such as Unik, Indomog, Kaspay, iPaymu, and Inapay.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
