Indonesia’s ecommerce players struggle as growth slows

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IN FOCUS

In today’s newsletter, we look at:

• An update of the key players in Indonesia’s ecommerce industry
• Tokopedia’s focus on advertising and serving more budget consumers
• Oral care startup Zenyum achieving EBITDA profitability in its largest markets

Hi there,

I was in Jakarta last month for the Tech in Asia conference. The city pulsed with dynamism, and you could see billboards plastered with local and foreign brands, from banks like BNI and Mandiri to accounting firm EY.

Two other brands I recognized were Blibli and Tokopedia, two key players that dominate ecommerce in the country.

My colleague Jofie highlights these two companies as well as the many others that make up Indonesia’s ecommerce landscape in this week’s Big Story.

Ecommerce remains the largest contributor to Indonesia’s digital economy, with estimates saying that gross merchandise value will reach US$82 billion in 2025, according to the latest e-Conomy SEA report.

However, growth has slowed since the pandemic. Between 2022 to 2023, the industry grew 7% compared to the 20% expansion between 2021 and 2022.

This is evident in Tokopedia’s and Bukalapak’s most recent financial results. I dive deeper into these results in this week’s Hot Take.

— Simon

THE BIG STORY

Indonesia’s ecommerce map reveals slowdowns and struggles

Image credit: Timmy Loen

Funding for Indonesian ecommerce players is the lowest in the past seven years. Some firms have pivoted while others have closed down.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI