With the improving infrastructure in Indonesia, the country is now presenting many opportunities for information technology, especially e-commerce and fintech, among other emerging economies in the regions of Asia.

Research by Google Temasek has shown that in 2017, the e-commerce sales of first-hand goods in Indonesia peaked at IDR 151.4 trillion (USD 10.9 billion) in gross merchandise value, growing 41% CAGR from 2015.

Highlights

Indonesia has become the largest spender on Information Technology (IT) in Southeast Asia.
The internet in Indonesia contributed to 2.5% of national GDP in 2016.
Indonesia will gain 125 million internet users by 2025.
Indonesia has 112% mobile penetration with a total of 266 million mobile subscribers and is the world’s 4th largest mobile market.
Revenue in the e-commerce market in Indonesia amounts to IDR 81.8 trillion (USD 8,591 million) in 2018.
An annual growth rate of revenue (CAGR 2018-2022) of 17.7% in e-commerce will result in a market volume of IDR 228.9 trillion (USD 16.5 billion) in 2022.
User penetration in e-commerce is at 11.8% in 2018 and is estimated to achieve 15.7% in 2022.

Economic Growth through Information Technology

The rapid development in the information technology sector, combined with drivers like mass consumption of products, urbanisation, a surge in mobile usage, and a tech-hungry young population, makes a positive impact on the economic growth in Indonesia. Ranking third behind China and India, current projections show that the nation’s e-market will reach IDR 151.4 trillion (USD 130 billion) by 2020.

With a predicted annual growth of 50% and robust mobile-first initiatives—strategy facilitating smartphones, tablets and task-specific apps to get the work done—retailers now have an exclusive opportunity in Indonesia to develop mobile platforms to boost e-market growth, especially in the consumer packaged goods.

According to International Data Corporation, Indonesia has become the largest spender on IT in Southeast Asia. The public sectors invest heavily in upgrading its internal infrastructure, and the private sectors do so as well to enhance customer service in order to gain a competitive edge in the marketplace. It is critical for both types of sectors because in 2025 Indonesia will have a massive 125 million internet users.

On top of that, a study by Deloitte claimed that internet in Indonesia in 2016 contributed to 2.5 % of the country’s GDP, up from the mere 1.6% in 2011. The growth of internet usage has further encouraged Indonesians to purchase smartphones, subscribe to monthly data package, and make online purchases. Leveraging these trends in Indonesia, there is a disruptive force of information technology in the next few decades to come.

Major Markets in IT in Indonesia

A large number of companies are experiencing digital transformation all over the world. According to NetApp Indonesia, three information technology (IT) trends are currently on the rise in Indonesia. First of all, data are becoming the new currency; secondly, more and more new platform model will take over the traditional channels; and lastly, corporate growth is now depending significantly on cloud computing. Presently, e-commerce and fintech are the two big and flourishing markets in Indonesia.

E-commerce

Indonesia’s current e-commerce market is similar to China’s online marketplace at its infant stage, with a colossal of different sellers providing goods for purchase via social media recommendations. On the same note, Indonesia’s e-commerce also represents the initial U.S. e-market, flooded with buyers cautious of retailers and online payments. As a result, with the potential to create a hybrid of the greatest opportunities based on America and China’s e-market economies, Indonesia is now catapulting itself to the global online marketplace.

Research conducted by Indonesia’s E-Commerce Association and Google found that e-commerce market has grown to IDR 81.8 trillion (USD 8,591 million) in 2018. The ease of finding information from home and making convenient electronic payment, as Indonesia’s e-commerce markets leverage on, are two of main reasons for the huge growth in e-commerce. According to iPrice.com, Lazada and Tokopedia are the first and second most searched e-commerce sites with the highest revenue in 2017.

Fintech

In 2016, fintech investments in Indonesia started to overtake e-commerce by storm. Investments into Indonesian fintech startups hit a record high in 2017—more than IDR 5.85 trillion (USD 421 million). This trend is continuing up until now in 2018. Thanks to the huge e-commerce boom in Indonesia, leading to a gold mine for digital payment startups in fintech.

Now, there are more than 150 fintech startups in Indonesia—almost 78% more as compared with 2015. A survey by AT Kearney and Google also identified that fintech is one of the most alluring sectors for investors in the information technology start-up’s ecosystem.

Continue Reading

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Selected testimonials

Cekindo helped me make the whole process of company registration in Indonesia less confusing and seamless at the same time. They have always been swift in response and hands-on at every email, never leaving me wondering or worried. As far as I am concerned, they go above and beyond the call of duty. They will most certainly be my long-term partner moving forward into the years to come.

Jason Peter Stevens
Group CEO, Studio XII Pte Ltd
We chose Cekindo because we considered it a professional company with a good attitude and a streamlined business model. Cekindo met all our expectations as it created the atmosphere of accountability and transparency. The most significant added values that we received from cooperation with Cekindo are the time we saved and mistakes we avoided.

Konstantin Simonov
Director, PT. AEKS Konsultasi dan Integrasi
Cekindo assisted us with a registration of a representative office in Indonesia. Also, their financial services have been helping us a lot — our local employees feel secure working for our company. Cekindo became our reliable partner, and their flexibility and full support of our business in Indonesia are the main reasons to continue in our cooperation.

Rajendra Iskandar
DESMI
After comparing several consultants, I found Cekindo is a international and professional organization with good understanding of local market. Cekindo helped our company to set up our first Indonesian entity, and also helps with day-to-day operation. Cekindo showed high level of professionalism. Jump start the business in Indonesia, take care of routine process, therefore we can focus more on our core business.

Max Yang
President, Indonesian Region, China Fortune Land Development Co., Ltd.
Herewith we want to express our appreciation to PT. Cekindo Bisnis Grup and their team for all the support on medical devices services so far. We would like to take this opportunity to thank Cekindo for taking the time to listen to our needs. Whenever a need has arisen, we have always received their consistent, timely and quality support. We would not hesitate to recommend Cekindo team for any related activity or services.

My Linh Hoangova
Bussines Executive, ELC Group
We were searching for suitable partner for the begining of our operation on Indonesian market. After short exploration and recommendation from our business partners we decided for Cekindo. Local knowledge, orientation at our business problematics, contacts and language. In a friendly approach combined with professional service. Consultation before the project – avoids so much unnecessary act of “foreigners” worse overview of the Indonesian legislative.

Michal Jerabek
Business Partner, Sedbergh, Ltd.
Cekindo has helped us in many ways, from helping our business associates obtain work permits to becoming nominee shareholders and assist all the way in company formation. The biggest value that Cekindo can bring is that they are very professional, competitively priced and very accommodating to client requests.

Jason Hue
President Director, Blue Dot Assistance Indonesia

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