Amazon to invest $600m in Indonesia: report

Amazon CEO Jeff Bezos. Photo credit: Steve Jurvetson.

What was previously just a rumor now seems to be taking concrete shape: the US ecommerce giant Amazon reportedly has its eyes firmly set on Indonesia.

This was according to Daniel Tumiwa, the head of Indonesia’s ecommerce association (iDEA).

“Amazon announced it will open an ecommerce branch in Indonesia. They will invest US$600 million in the first year,” Daniel was quoted by local media on Saturday.

For comparison, the ambitious local ecommerce startup Matahari Mall, which is bankrolled by the Lippo Group conglomerate, said it would commit US$500 million to its endeavor.

According to Daniel, Amazon has not yet revealed a timeframe for its plans.

iDEA responded to this article, clarifying that the organization never made an official statement about Amazon’s plans.

“We can not confirm the facts at the moment,” said an iDEA spokesperson. He added that Daniel Tumiwa spoke with Kontan in private, and not in his capacity as head of the ecommerce association. According to iDEA, the quote was a misunderstanding and “got picked up from an informal conversation.”

Tech in Asia has reached out to Amazon for comment.

(Updated at 4:30pm on June 20 to include iDEA’s statement and amend the headline. The rest of the article is unchanged.)