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Tag: Tokopedia

  • Indonesia Enforces 0.5% Tax Collection on Domestic E-Commerce Sales

    Indonesia Enforces 0.5% Tax Collection on Domestic E-Commerce Sales

    Finance Minister Suahasil Nazara confirmed on Friday that collecting income tax from merchants selling through online platforms is necessary to create fairer competition between digital sellers and conventional brick-and-mortar retailers.

    The policy applies an Article 22 income tax rate of 0.5% on domestic merchants’ sales turnover, governed by Finance Minister Regulation No. 37 of 2025. The Finance Ministry began consolidating transaction revenue data in November 2026, with the first figures scheduled for release in December.

    Under the framework, the government designated four major e-commerce platforms, Shopee, Tokopedia, Lazada and Blibli, to collect, remit and report the levy on behalf of sellers operating across their digital marketplaces.

    Marketplace Tax Collection

    The measure introduces no new levy, shifting collection instead to marketplace operators for income tax that merchants previously handled independently. Individual merchants generating annual turnover of up to Rp 500 million ($27,400) are exempt from marketplace tax collection, provided they fulfill formal criteria, including submitting a declaration of their turnover.

    Suahasil stressed that commercial enterprises across differing distribution channels require comparable treatment under fiscal rules, whether trading across digital storefronts or physical premises.

    “The taxation of e-commerce is intended to improve the level playing field, even though the tax rate for online merchants is lower,” Suahasil told a press conference in Jakarta.

    “The new e-commerce tax policy is beginning to be reflected in consolidated data this November, and the figures will be reported next month,” Suahasil said.

    Separate Tax on Foreign Digital Services

    Suahasil noted that income tax withheld from domestic online traders remains distinct from value-added tax levied on offshore digital goods and services. Cross-border digital transactions, including video streaming platform subscriptions, have yielded Rp 14 trillion ($768.7 million) in VAT revenue.

    Both tax collection tracks reflect state initiatives aimed at strengthening fiscal compliance across the digital economy, encompassing internal merchant sales and cross-border digital services.

  • TikTok Shop Targets 13.2% Share Across Southeast Asia E-Commerce

    TikTok Shop Targets 13.2% Share Across Southeast Asia E-Commerce

    TikTok Shop is projected to take a 13.2 per cent share of Southeast Asia’s e-commerce market in 2023, upending the hierarchy established by regional incumbents. The platform is tracking toward a gross merchandise value target of US$15 billion this year, according to data from venture builder Momentum Works.

    That volume represents more than a threefold jump from the US$4.4 billion recorded across the region in 2022. The rapid expansion pulls the ByteDance unit into direct parity with Indonesian market leader Tokopedia, which holds an estimated 13.9 per cent share, while closing the gap on Lazada at 17.7 per cent.

    Beauty Baskets Drive Volume Growth

    Personal care and beauty products form the engine of the platform’s regional expansion. The category accounts for 84 per cent of all products sold on TikTok Shop and generates 70 per cent of its total gross merchandise value.

    Merchants and cosmetics brands rely heavily on product bundling strategies across their livestreams to push average order values higher. By pairing skin creams, lip tints and cleansers into discounted kits, sellers generate bulk purchases from viewers watching real-time product demonstrations.

    The concentration in beauty mirrors the early development of social commerce in mainland China, where low-ticket impulse buys established initial buying habits before consumers shifted toward consumer electronics and household goods.

    Shopee Steps Up Indonesian Livestream Battle

    Market leader Shopee still retains the dominant regional footprint with a projected 46.5 per cent market share for 2023. Sea Group is responding directly by diverting resources into its own live shopping features to defend its merchant base in major markets like Indonesia.

    During its 7.7 campaign in Indonesia, Shopee logged a 12-fold increase in transaction volumes through livestreaming channels compared to a standard trading day, Sea Group chief executive Forrest Li told analysts on an earnings call. That spending shift demonstrates how legacy marketplace operators must now pay to defend engagement formats they once treated as optional add-ons.

    For consumer brands and multi-channel retailers across Southeast Asia, the fragmentation of platform market share alters commercial use. Sellers no longer rely entirely on Shopee search placements or Lazada campaign days to clear inventory. Instead, marketing budgets are flowing toward video creator networks, changing merchant acquisition costs and logistics routing across Jakarta.

    Disruption Tests Traditional Network Effects

    Established marketplaces long operated under the assumption that vast merchant catalogs and established logistics routes created insurmountable defenses. The surge of video-led buying breaks that pattern by pulling purchasing directly into entertainment feeds.

    “The bigger narrative is that in ecommerce, where leading players seem to have a network effect and structural advantage, disruption can still happen, and the incumbents should always remain focused and vigilant,” Chen said in a statement.

    Weihan Chen, insights lead at Momentum Works, noted that incumbents face structural pressure regardless of whether TikTok Shop operates as an isolated social platform or a full-scale marketplace operator.

    The threat is particularly sharp in Indonesia, Southeast Asia’s biggest retail economy, where ByteDance has staged extensive offline merchant recruitment drives and creator summits. Having reached scale in beauty, the platform now faces the harder operational test of building delivery networks and merchant infrastructure capable of handling bulkier, higher-value consumer goods without margin erosion.

    Momentum Works is scheduled to release the complete market share dataset across Southeast Asia’s digital commerce sector in an upcoming research report, outlining full-year regional gross merchandise volume tallies.

  • Indonesia Moves E-Commerce Seller Tax Collection Forward to October 1

    Indonesia Moves E-Commerce Seller Tax Collection Forward to October 1

    Indonesia will require major e-commerce platforms to collect income taxes directly from merchant sales starting October 1. The decision pulls the policy forward by one month across a 71 billion dollar digital retail sector.

    Four major marketplaces fall under the mandate: ByteDance-controlled Tokopedia, Sea Limited’s Shopee, Alibaba-backed Lazada and local operator Blibli.

    Tax Collection Brought Forward After Cabinet Switch

    The accelerated rollout follows the removal of former finance minister Purbaya Yudhi Sadewa. President Prabowo Subianto appointed veteran technocrat Suahasil Nazara to lead the ministry in his place. Suahasil becomes Prabowo’s third finance minister in less than two years.

    Tax authorities designated the four platform operators as official withholding agents in July. Platforms were initially scheduled to deduct taxes from seller earnings in August. Implementation was abruptly put on hold.

    Bimo Wijayanto, head of the finance ministry’s tax department, confirmed the October 1 start date to domestic media. Regulatory preparations and technical systems between the state and platforms are complete, he said.

    God willing, we will immediately activate the regulation and implementation. They are ready, we are ready. There’s no drama.

    Reversal of the August Implementation Delay

    This decision unwinds a delay granted on August 5. Purbaya had postponed the withholding rule to November 1 to protect consumer purchasing power and domestic merchants. At the time, the tax office pledged to refund any levies collected prematurely.

    Internal policy friction preceded the leadership change. Prior to his dismissal, Purbaya clashed with senior ministry officials, including Bimo, over the transfer and reassignment of hundreds of department personnel.

    With Suahasil installed at the ministry, the tax office moved quickly. Officials decided to secure digital commerce revenues immediately rather than wait for November.

    Operational Pressure Shifts to Platform Merchants

    Shifting the withholding burden to marketplaces forces hundreds of thousands of independent merchants into direct compliance. Until now, tracking revenue from decentralized digital storefronts relied on self-reporting by shop owners. That system left large volumes of domestic transactions outside the formal tax net.

    For platform operators, the rule demands automated calculations and real-time deductions from merchant payouts. Tokopedia and Shopee process the vast majority of consumer volume in the country. Tokopedia, which combined its Indonesian operations with TikTok Shop and retains GoTo as a minority shareholder, now shares market exposure with Shopee if small vendors migrate sales to unmonitored social channels.

    Gross margins for small merchants selling consumer goods, fashion and electronics will narrow once deductions begin. Established brands operating under corporate tax structures face little disruption. Micro-sellers running on thin markups will have to raise retail prices or absorb the levy.

    Southeast Asia’s Largest Digital Economy

    Indonesia is the central growth engine for digital commerce in Southeast Asia. Industry estimates from Google, Temasek and Bain & Co valued the country’s e-commerce gross merchandise value at 71 billion dollars in 2025. Projections show that figure reaching 140 billion dollars by 2030.

    Tax administrators view expanding digital retail as an essential revenue source for state spending priorities under Prabowo. Traditional retail faces sluggish household demand. Closing tax gaps between physical stores and digital storefronts has become an urgent fiscal target.

    Marketplace platforms are currently issuing technical guidelines and updating seller dashboards ahead of the October 1 launch. Merchant groups will monitor vendor reactions across all four designated portals as automated deductions go live.

  • Video Commerce Captures 20 per Cent of Southeast Asia E-Commerce GMV

    Video Commerce Captures 20 per Cent of Southeast Asia E-Commerce GMV

    Video commerce now accounts for roughly a fifth of Southeast Asian e-commerce gross merchandise value, forcing consumer brands across the region to overhaul their distribution models. Data compiled by Google, Temasek and Bain shows creator-led sales shifting from experimental promotional spending into core retail infrastructure across key markets including Indonesia, Thailand and Vietnam.

    That expansion brings operational friction. Sellers running live broadcasts face steep drops between top-line gross merchandise value and realized revenue once cash-on-delivery refusals, return windows, creator fees and platform commissions clear. Promotional subsidies, including platform-funded vouchers and discounted freight, have masked true channel margins during market-share acquisition phases. When platforms pull back subsidies, merchant unit economics drop quickly.

    Platform control and merchant margin pressure

    Selling through creator streams leaves transaction infrastructure in third-party hands. Platforms control storefronts, checkout systems, payment rails, customer records, delivery terms and dispute resolution, leaving brands to supply inventory and absorb product returns.

    Multi-market operators managing sales across Jakarta, Bangkok and Manila face diverging compliance environments. Content licensing, creator contracts, disclosure mandates and withholding taxes vary by jurisdiction, preventing companies from running uniform regional campaigns without local adaptation.

    The pattern follows China’s live commerce cycle. Brands in that market initially concentrated volume through top independent hosts before margins deteriorated. Chinese consumer labels responded by building internal broadcast studios and running scheduled daily programming to retain customer data and protect gross margins.

    Regulatory scrutiny reshapes regional operations

    Governments across Southeast Asia have moved to regulate social commerce platforms as critical retail infrastructure rather than digital advertising channels. Indonesia enacted Ministry of Trade Regulation 31 in September 2023, banning direct e-commerce transactions inside social media applications. The rule halted TikTok Shop until parent company ByteDance completed a 1.5 billion dollar investment to secure a controlling stake in GoTo’s Tokopedia platform.

    Vietnam enacted Decree 147 in late December 2024, enforcing strict account verification requirements before individuals can post or host livestreams. Merchant operators are now building direct customer channels, internal studio facilities and formal data-rights clauses into creator agreements across tier-two Vietnamese cities and eastern Indonesia, where production overhead remains competitive.

    Retailers across the region now track net settlement data and return rates per stream as platforms adjust commercial take rates and enforcement rules throughout 2026.

  • Tokopedia and TikTok Shop Lift Indonesian Merchant Sales 51 per Cent

    Tokopedia and TikTok Shop Lift Indonesian Merchant Sales 51 per Cent

    Tokopedia and TikTok Shop drove a 51 per cent increase in sales of Indonesian local products during the first half of 2026. The combined marketplace moved nearly 700 million items over the period.

    Gross merchandise value for the joint #BeliLokal initiative climbed 14 per cent during the six months. Merchant participation rose 50 per cent compared with the first half of 2025.

    Expanding beyond Java

    Agency Bukacerita created an Independence Day campaign named Pahlawan Beli Lokal for the platform. It promotes domestic makers of fashion, packaged food, automotive goods, and electronics. The campaign runs on social feeds and a dedicated web hub, featuring regional brands like Malang snack producer Apelicious and cosmetics brand Facetology.

    According to internal survey data from TikTok Shop, 72 per cent of participating sellers gained new customers through discovery commerce tools. Another 67 per cent used the channel to launch new product lines. Live shopping sessions, affiliate tie-ups, and short videos generated most of those initial sales.

    ByteDance and GoTo are working to satisfy Indonesian regulators following the state-mandated merger of TikTok Shop and Tokopedia. Both operators face stiff competition from Shopee and direct-from-factory platforms in Southeast Asia’s largest consumer market. Alignment with local merchants remains critical for their political and commercial standing.

    Training and registration push

    The platforms have turned the promotional campaign into a permanent merchant onboarding track. More than 4,800 micro, small, and medium enterprises, creators, and affiliates have completed training modules. These sessions cover intellectual property rules, live selling, and official business registration numbers.

    Most participating merchants operate outside Greater Jakarta. Half of the training workshops took place outside Java to tap production hubs across the outer islands.

    “In the spirit of Independence Day, we want to continue strengthening collaboration with the government, creators, partners, and the community through #BeliLokal so that more local businesses can move up a class, build more competitive businesses, and grow sustainably,” said Stephanie Susilo, executive director of Tokopedia and TikTok Shop Indonesia.

    Plans are underway to expand regional onboarding workshops into secondary cities across Sumatra and Sulawesi through the fourth quarter.

  • GoTo posts first full-year underlying profit

    GoTo posts first full-year underlying profit

    Indonesia’s biggest tech firm PT GoTo Gojek Tokopedia forecast a sharp increase in its underlying earnings for 2025 on Wednesday, and also posted its first ever full-year underlying profit.

    GoTo, which offers ride hailing, food deliveries, logistics and financial services, also forecast a surge in its core earnings, or adjusted EBITDA, the company’s key measure of profitability.

    “We saw a significant increase in our user numbers throughout the year and expect this to continue into 2025,” said Patrick Walujo, GoTo Group CEO.

    The tech firm now expects its adjusted EBITDA for 2025 to be in the range of 1.4 trillion rupiah (US$85.16 million) to 1.6 trillion rupiah.

    It’s a significant increase from GoTo’s underlying profit of 327 billion rupiah for 2024, swinging from a loss of 3.670 trillion rupiah last year.

    The firm’s financial technology segment, whose earnings jumped 70 per cent last year, is expected to expand further in 2025 as the user base for its GoPay app and its loan book grows, the company said.

    GoTo, which is backed by Japan’s SoftBank Group and Singapore’s sovereign wealth fund GIC, had reportedly been involved in merger talks with Southeast Asian ride-hailing and food delivery company Grab.

    But GoTo said in a filing last month it had not engaged in talks regarding a potential merger with any party, noting media reports involving Grab.

    In an interview with the Financial Times, GoTo CEO Walujo expressed openness to a potential deal.

    “I will always be open to anything that is enhancing our shareholders’ return . . . in the long term,” Walujo said.

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  • VinShop aims for success as store connection platform

    VinShop aims for success as store connection platform

    VinShop is expected to soon become a successful store connection platform in Vietnam, with a business strategy similar to Tokopedia in Indonesia.

    Tokopedia’s success lesson

    Founded in 2009, Tokopedia is one of Indonesia’s tech unicorns. According to CB Insights (U.S.), Tokopedia’s value reached $7 billion as of June 2020, becoming the third largest unicorn in Southeast Asia, behind Grab (Singapore) and Gojek (Indonesia).

    Tokopedia was developed as a shopping platform where any business could easily arrange and sell its products.

    William Tanuwijaya, co-founder of Tokopedia, said that the company’s business model is similar to Alibaba’s as it combines Toko (shop) and encyclopedia.

    In 2018, Tokopedia launched the Mitra Tokopedia app for warungs – small family-owned businesses that usually cater to a neighborhood.

    Mitra Tokopedia has recorded one million downloads in the island nation that has two million warungs.

    Mitra Tokopedia has gained popularity and is now present in more than 20 major cities, including Bandung, Yogyakarta, Banda Aceh, Medan, Palembang, and Pekanbaru. This is due to its capacity to connect grocery store owners directly with suppliers and ease retail operations.

    Research from PT Visa Worldwide shows that more than 90 percent of Indonesia’s transactions are conducted in cash. Therefore, tech unicorns like Tokopedia are pioneers in promoting online shopping.

    According to experts, grocery stores still have several advantages over supermarket systems and e-commerce, particularly in Asia. They are friendly, close to homes and convenient.

    Tokopedia, Warung Pintar in Indonesia, StoreKing in India, and Alibaba with LST have all shaken hands with traditional retailers.

    VinShop’s potential

    Tokopedia’s success in Indonesia inspired One Mount Group to develop its VinShop platform.

    One year after its launch, VinShop has connected more than 100,000 traditional grocery stores. However, this figure is still modest compared to the market potential.

    According to Nielsen, Vietnam has 1.4 million grocery stores in operation. Kantar Worldpanel, the world’s leading consulting and market research company, said that traditional retail channels, including markets and grocery stores, still meet 85 percent of consumer demand. The advantage of the grocery store business model is convenience, right in the small alley, good service, easy to travel, and low cost.

    VinShop has helped 10,000 Vietnamese grocers become real business people by using technology and financial solutions from this digital platform. Data from VinShop shows that the platform has covered up to 80 percent of the core market in Hanoi and Ho Chi Minh City.

    Several small businesses said that they can earn a lot thanks to VinShop’s benefits, such as the abundance of products from suppliers themselves, transparent pricing, more than 100 promotions each month, and VinShop’s loyalty programs.

  • Gojek and Tokopedia formally announce merger

    Gojek and Tokopedia formally announce merger

    Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia formally announced their merger today in a transaction that will create a technology powerhouse in the country’s largest deal.

    Sources familiar with the situation had earlier said the companies were seeking a $18 billion merger. Neither firm confirmed a valuation for the merged group, named GoTo.

    The deal comes as Gojek and Tokopedia seek to boost profitability some 10 years after they were founded by offering a bouquet of services under a single platform, extending a regional trend.

    Alibaba Group Holding and SoftBank Group Corp are among Tokopedia’s investors, while Gojek’s include Warburg Pincus and Tencent Holdings.

    Last month, Southeast Asia’s biggest ride-hailing and food delivery firm, Grab, clinched a $40 billion merger with a special purpose acquisition company. Meanwhile Singapore-based regional internet firm Sea Ltd, which operates e-commerce platform Shopee, is also muscling into food delivery and financial services.

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  • Indonesian e-commerce site Tokopedia generates record sales

    Indonesian e-commerce site Tokopedia generates record sales

    Tokopedia, an Indonesian e-commerce site backed by SoftBank and Alibaba, said on Wednesday it generated a record $1.3 billion in gross merchandise volume (GMV) during Ramadan sale, amid soaring demand for online retail.

    The company said its biggest sales, recorded on May 17, resulted in a total transaction value that was higher than combined sales from the first six years.

    “Those transactions are happening across 97% of sub-districts in Indonesia and involved 5.9 million sellers,” said Tokopedia founder and CEO William Tanuwijaya.

    The start-up secured $1.1 billion in a funding round in December, led by Japan’s SoftBank Group Vision Fund and Chinese e-commerce giant Alibaba Group Holding Ltd. Sources say Tokopedia is valued at $7 billion.

    Shopping for clothes and gifts during the holy month of Ramadan is a significant part of the culture for Indonesia – the world’s largest Muslim-majority country.

    The Southeast Asian nation of over 260 million people is seen among the most promising global e-commerce markets, buoyed by a younger generation shifting their preference to online shopping.

    The Indonesian internet economy reached $27 billion last year and is poised to grow to $100 billion by 2025, according to Google-Temasek 2018 study.

    However, its logistical challenges are massive. The country’s 17,000 islands are sprinkled across an area bigger than the European Union, with logistical costs swallowing up around a quarter of Indonesia’s gross domestic product.

    Tokopedia’s Ramadan sale success reflects that e-commerce retailers are trying to overcome difficulties faster than expected amid higher usage of smartphones.

    Tanuwijaya told reporters that Tokopedia, which does not have its own inventory, was experimenting with artificial intelligence to predict demand and store stock in advance in partnership with warehouse operators.

    Rivals Bukalapak and Shoppee have not made their Ramadan sales public.

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  • Tokopedia enters wedding industry, buying Bridestory

    Tokopedia enters wedding industry, buying Bridestory

    Indonesian e-commerce platform Tokopedia has acquired local wedding-service marketplace Bridestory, which allows users to plan their big day on their smartphones.

    Bridestory targets the Southeast Asian wedding market, connecting couples with venues, organizers and vendors/service providers in the wedding industry. It has reportedly connected more than 3.5 million customers with at least 27,000 wedding vendors annually.

    “It all started with a web application,” said Bridestory CEO Kevin Mintaraga, “then we slowly saw the change in behavior as people became more mobile-centric. We also wanted to help brides to plan their wedding anywhere and anytime with their smartphone”.

    The Tokopedia acquisition includes Bridestory’s new service, Parent story, which help parents and expecting parents connect with age-specific activity providers for their kids.

    Tokopedia has stated that the site will continue to operate independently, while Kevin Mintaraga will join Tokopedia’s management in a VP role.

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  • Tokopedia expands delivery promise Same Day Delivery

    Tokopedia expands delivery promise Same Day Delivery

    Indonesian e-commerce company Tokopedia is expanding its one-day delivery guarantee to almost all of its products as it prepares to battle Amazon and other foreign rivals.

    Backed by Alibaba Group and SoftBank, Tokopedia’s greatest strength might lie in the fact it is a 100-per-cent Indonesian focused company, unlike its rivals – and shareholder – which are simultaneously trying to build share in many different markets simultaneously.

    “We focus on Indonesia,” Tokopedia founder and CEO William Tanuwijaya said in an interview in Tokyo. “Our mission is really to solve the Indonesian customer problem. And we see the room for growth is still tremendous.”

    Online shopping in Indonesia is expected to grow by more than 400 percent within the next five or so years, to US$53 billion. That sort of growth is attracting Amazon, which opened in Singapore two years ago and subsequently launched in Australia, along with existing Indonesian rivals including Alibaba-backed Lazada and Shopee.

    Tokopedia already offers same-day or one-day delivery for about 65 percent of the products it sells. Expanding that to almost its entire catalog would be made possible by alliances with 11 logistics companies covering the most populous of the country’s 17,000 islands.

    The company is a marketplace, linking more than 5 million sellers with the nation’s largest database of online shoppers. It has no inventory of its own.

    Tanuwijaya admitted getting more than 90 per cent of goods delivered within 24 hours was a goal that might take two years or more to achieve.

  • Indonesia’s Tokopedia Secures $1.1b From Alibaba, SoftBank

    Indonesia’s Tokopedia Secures $1.1b From Alibaba, SoftBank

    Indonesian e-commerce company Tokopedia said on Wednesday that it had secured $1.1 billion in its latest funding round led by Chinese e-commerce giant Alibaba Group Holding and Japan’s SoftBank Group. This follows a similar investment in 2017, also led by Alibaba, which has been expanding rapidly into Southeast Asia amid slowing growth in China’s e-commerce market.

    Tokopedia said it planned to use the funds to invest in technology and infrastructure, adding that the firm would continue to focus on the Indonesian market and drive economic development and financial inclusion in the country.

    The investment would help “broaden Tokopedia’s scale and reach” besides improving its operational efficiency, chief executive and co-founder William Tanuwijaya said in a statement.

    Tokopedia did not confirm a valuation following the round. However, news website TechCrunch citing an unnamed source said the company was valued at around $7 billion.

    The latest funding boosts Alibaba’s share of the fast-growing Indonesian e-commerce market. The Chinese company is also the majority owner of Lazada, which is the Tokopedia’s top competitor in the market.

    Indonesia is also increasingly becoming a proxy battleground for Alibaba and JD.com, China’s second-largest e-commerce company, which has invested heavily in building a logistics network in the archipelago.

    Founded in 2009, Tokopedia is currently Indonesia’s largest online marketplace, drawing comparisons to Alibaba’s Taobao.

    The latest round includes investments from Softbank’s Vision Fund as well as Softbank Ventures Korea and Sequoia Capital.

    The company, which delivers to around 93 percent of Indonesian districts, says it has quadrupled its sales in the past year.

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  • Millennials Dominate Indonesia’s Online Shopping Scene

    Millennials Dominate Indonesia’s Online Shopping Scene

    Millennials are driving growth in Indonesia’s e-commerce industry as they buy a wide range of items, from clothes and gadgets to phone credit and electricity tokens, from online outlets with increasing frequency, according to a recent report from market research and consulting firm Ipsos Indonesia. The E-Commerce Outlook 2018 report released on Monday looked at the profiles of 32 million online shoppers in the country.

    The study drew results from an online survey in August. Ipsos Indonesia said the study served as an exploratory stage to be followed up by a more extensive survey planned for next year.

    The study found that 64 percent of online shopping is dominated and driven by millennials, both in terms of product categories and revenue, Ipsos research director Andi Sukma said, referring to the 25-30 age group.

    “They are made up of young families that have a minimum income of Rp 4 million [$280] per month,” said Indah Tanip, an associate director at Ipsos Observer.

    Most millennials are drawn to e-commerce for its convenience and competitive prices, the rise of financial technology and online payment platforms, such as OVO and Go-Pay, which have also encouraged more millennials to purchase their phone credit and pay bills through e-commerce apps, the Ipsos report said.

    The report also identified the five most-visited e-commerce sites: Tokopedia, Shopee, Lazada, Bukalapak and Blibli.com.

    Citing data from the Indonesian Internet Service Providers Association (APJII), Ipsos said the wider availability of broadband internet in the country has helped fuel e-commerce growth. About 72 percent of Indonesians living in urban areas and nearly 50 percent in rural-urban areas have internet access.

    The E-Commerce Outlook 2018 report also looked at community habits, online service accessibility, popular e-commerce sites and consumers’ preferred payment methods.

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  • OVO lead in Cashless Payment Race in Indonesia

    OVO lead in Cashless Payment Race in Indonesia

    Lippo-backed cashless payment service OVO has announced a partnership with Tokopedia, Indonesia’s largest e-commerce platform. OVO said in a statement on Wednesday that the deal would help it cement its position as the country’s largest mobile payment platform in terms of transaction volume and reach.

    “The partnership will add Tokopedia’s close to 80 million active monthly users to OVO’s existing userbase of 60 million. It will also add more than 4 million Tokopedia merchants to what is already a market-leading merchant network, covering malls, smaller retailer, as well as GrabFood partners and Kudo agents,” the company said in the statement.

    OVO has been partnering with online-based ride-hailing service Grab since December last year, while also targeting brick-and-mortar shops and restaurants across Indonesia.

    “We see this landmark partnership as a validation of our strategy to enable payments for all Indonesian companies, both online and offline. Cash is a very difficult habit to break and consumers will only switch to cashless if it’s easier and safer than cash,” said Harianto Gunawan, director of enterprise payments at OVO.

    OVO chief executive Jason Thompson said the company expects a surge in new users and additional transactions from the e-commerce platform.

    “We have a very bullish outlook as we close out 2018. Having established ourselves as the No. 1 mobile payment platform by transaction volume, this partnership with Tokopedia and our push into e-commerce will further accelerate our growth,” Thompson said.

    The company said OVO is now available in 90 percent of shopping malls across the country, offering cashless payment options to customers at hypermarkets, department stores, coffee shops, cinemas, parking operators, hospital chains and food and beverage outlets.

    It has also set a target to expand QR-code payments to 100,000 small and medium enterprises by the end of this year.

    OVO’s online-to-offline business comprises its partnerships with Grab and Kudo, a service that allows individual agents to sell digital products, such as phone credit, tickets or insurance, to customers. Kudo currently has about 1.7 million agents in its network.

    OVO said its latest deal with Tokopedia would allow it to reach 93 percent of districts in Indonesia currently served by the e-commerce platform. It also plans to secure more deals with other e-commerce platforms.

  • Indonesian Conglomerates-Backed Tech Fund to Be Launched in 6 Months

    Indonesian Conglomerates-Backed Tech Fund to Be Launched in 6 Months

    An Indonesian tech venture capital fund backed by the country’s largest conglomerates will be launched within the next six months, Communications Minister Rudiantara said.

    “We, Indonesian investors, must immediately enter the tech market,” the minister said on Thursday (05/07).

    He said the fund, which would be pooled from Indonesian conglomerates, was supported by his ministry, with its structure being discussed with the Financial Services Authority (OJK).

    The size of the fund has not been disclosed.

    Rudiantara said he held discussions with local conglomerates on how they should unite and support “series A, B and C” as well as “unicorns,” a term used for startups worth at least $1 billion.

    The Sinar Mas Group, one of Indonesia’s largest conglomerates, previously said that it would invest in a pooled venture fund supported by the government.

    The country’s startup sector has witnessed a boom as investors are lured by the youthful demographic in the nation of more than 250 million people, who resort to online shopping for everything from tickets to electronic gadgets.

    “While two national conglomerates such as Djarum and Astra became investors in a ‘unicorn’ such as Go-Jek, it is not enough,” the minister said.

    The country has four “unicorns,” including ride-hailing service Go-Jek, travel site Traveloka and market places Bukalapak and Tokopedia.

     

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