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13 February 2017

Indonesia’s Retail Sector; E-Commerce, the Next Growth Driver

Boasting a population of more than 250 million, the fourth-largest in the world, and a disproportionately large middle-class as well as youthful population, Indonesia remains a market of immense potential for the retail sector. Foreign retailers in recognising this potential have taken a much more aggressive approach to the market in recent years. In tandem, local retailers have been trying to keep up by expanding into newly emerging regions and secondary cities. Meanwhile, the Indonesian government has also introduced measures to revitalise the country’s traditional markets that make up the traditional retail sector while also seeking to create a supportive environment for the country’s growing e-commerce industry. Combined, Indonesia’s retail sector is a patchwork of modern and traditional retail outlets with increased digitalisation accelerating the modern segment while also opening up new opportunities to entrepreneurs and the traditional market.