E-commerce overview from indonesia

1. E-Commerce in Indonesia
Research and Analysis
06/08/2012

2. Key Finding
• The growth of indonesia online users will
be give a benefit to an e-commerce and online
transaction.
• E – Commerce currently rising in indonesia, and it’s a
right time to running an online mal bussines.
• Indonesia netizen currently tend to buy online for
fashion, gadget, and personal care.
• Trust issue is still to be consider by consumer. The
originality of the product, internet payment system and
from the e-commerce website itself.
• Indonesia people tend to pay using Cash on Delivery
and bank transfer rather than credit card or other
internet payment system.

3. Internet in Indonesia
Internet grows faster
Year Users Population %
2000 2,000,000 206,264,595 1% 95
TV
94
2011 55,000,000 245,613,043 22,4%
Source: Markplus 27
Radio
30
24 Increase 5%
Internet
94 19
Newspap 13
er 14
13
55 Cinema
14
42
7
31 Tabloid
9
20
5 2010 2011
Magazine
2 7
Source : Consumer Media View W4 2010 – W4 2011
2000 2006 2009 2010 2011 2015
data in Millions
source by BCG Report & Markplus
Internet user in indonesia increase because of technology, more educated people and the infrastructur which
getting better year by year.

4. Internet Retailing in Indonesia
Internet Retailing in Indonesia Forecast Internet Retailing in Indonesia
(Revenue 2006 - 2011) (Revenue 2011 - 2016)
1.1
0.5 1
0.8
0.7
0.3 0.3 0.6
0.5
0.2
0.1 0.1
2006 2007 2008 2009 2010 2011 2011 2012 2013 2014 2015 2016
data in Trilion Rp. data in Trilion Rp.
source by Euromonitor, Retailing in Indonesia source by Euromonitor, Retailing in Indonesia
70% of Indonesian online users
intend to make an online purchase
www.acnielsen.co.id/news/NEWS14072010.shtml

5. Customer Study
• Behaviour
Online thing is not that new to most Indonesians living in big cities, they know it
but don’t do it. Most Indonesian still lacking in trust to e-commerce sites. They
still fear fraud, and still prefer offline transaction because they can see, touch, feel
and try the product physically.
• Payment Infrastructure
in 2010, almost no online payment gateaway at all, but it’s definitely going to be
a lot of offer from payment services to startups. iPaymu, Veritrans and Doku are the
most famous online payment provider. Nowdays both of Bank Mandiri and
BCA have their own online payment system to support online shopping.
• Internet Mobile
None of these e-commerce companies ara doing anything
significantly for their mobile users. The market is in mobile, but most of
the e-commerce startups are pushing their desktop websites.
• Logistics Infrastructure
e-commerce is just commerce using the internet, and a part of the
commerce is also logistics, this has been an issue for most companies.
• Regulations
Indonesian government is planning to lauch a regulation that prohibits anyone
to handle money transfer which could hold up e-commerce industry. (a non banking
company has to get a permit from government for any transfer activity matters)

6. Customer Behaviour
Customers are getting confidence using e-commerce
with the help of their friends’ recommendation, and
they need an e-commerce services that are trustworthy
and easy to be accessed. LINK
Customer tend to buy Fashion and Gadget from online
shopping. Female customer tend to buy
clothes, shoes, and personal cares; while male buy
shoes, gadget and gadget accessories.
LINK
The products that customer buy like clothes, shoes, and
accessories tend to cost around IDR. 500,000. Customer
still don’t feel safe to spend more than IDR. 500,000
because of the Trust Issue. LINK
Customer tend to pay via bank transfer or cash on
delivery rather than using credit card because Indonesia
has earned a reputation for credit card fraud. LINK

7. Payment Infrastructur
Both of Bank Mandiri and BCA have their own online payment system, For credit card usage there is
a payment portal like Ipaymu ,Veritrans and Doku.
Mandiri clickpay Merchants: Set up Fee : Rp15,000,000
BCA Klikpay Merchants: Monthly Fee : Rp500,000
1. Garuda Indonesia (ticketing) Transaction Fee : 3,5% +
2. Plasa.com (belanja online) 1. Bhinekka.com Rp5,000
3. Indomog (voucher online) 2. Blibli.com
4. Rakuten (belanja online) 3. CBN
5. Blibli.com (belanja online) 4. Gudang voucher
6. Kagum Hotel (reservasi hotel) 5. livingsocial
7. Bhinneka.com (belanja online)
8. Enjoyspin.com (game online) Target: 500,000 transactions in 2012
9. Net.Axisworld (belanja online)
10. Tokopedia (belanja online)
Target 2012 : IDR 100 billion
For The payment infrastructure is very expensive and for some online shopping all the fee is charge to
customer or their markup the price.

8. Internet Mobile
48% of regular internet users in Indonesia use a mobile phone to access the internet, the
number will climb to an additonal of 5% within 12 months
2010 internet users 42.000.000
So there are 20.160.000 users using mobile phone to
access the internet
While 21.840.000 users access the internet using
Desktop/PC

9. Logistic Infrastructur
Due to Indonesia is a archipelago nation, so there is take a day and money if the customer
live outside java island. Online shopping usually charge the shipping fee to customer, so if
the customer live far away from capital city then they must spend much money just for
shipping fee.
Nation wide Nation wide Jabodetabek Only
Price Jabodetabek Area – Rp6,000 Price Jabodetabek Area – Rp6,000 Price - Calculated
The problem for many online shop in Indonesia is the shipping time, they usually take 2 till 6
work day for shipping time.

10. Regulation
After now there is no specific regulation or law for e-
commerce or online shopping.
In generally they use UU-ITE No. 11 Tahun 2008 as a
guideline for internet transaction and cyber law

11. E - Commerce in Indonesia
TOP 10 E – Commerce Website based on Alexa E – Commerce current trend category :
No. Portal Name Segmentation
Daily Daily Page Indonesia 1. Classified Ad LINK
Visitor View Rank
1 kaskus.co.id Classified Ad 1,173,887 20,425,631 9 2. Market Place LINK
2 tokobagus.com Classified Ad 541,180 9,037,701 15
3 berniaga.com Classified Ad 326,679 4,508,167 22 3. Online Retailer LINK
4 multiply.com Market Place 769,043 4,022,097 46
5 Bhineka.com Online Retailer 158,189 822,580 53 4. Group Buying LINK
6 lazada.co.id Online Retailer 149,560 897,360 54
7 olx.co.id Classified Ad 166,141 541,621 58
indonetwork.co.i
8 Classified Ad 155,954 640,972 60
d
9 tokopedia.com Market Place 107,303 2,414,327 66
10 zalora.co.id Online Retailer 78,832 457,226 131
11 dinomarket.com Market Place 45,191 343,454 197
12 disdus.com Group Buying 47,242 212,589 214
13 blibli.com Online Retailer 41,760 137,809 281
14 livingsocial.co.id Group Buying 30,749 113,772 324
15 rakuten.co.id Market Place 25,985 96,146 506

12. E - Commerce Revenue
Competitor Study
Major Player E-Commerce in Indonesia
Annual estimated
7% 4% revenue
13%
bhineka.com Rp60.000.000.000
40%
multiply.com Rp32.000.000.000
14% DealKeren Rp20.000.000.000
rakuten.co.id Rp19.800.000.000
22% plasa.com Rp10.000.000.000
tokopedia.co
Rp6.500.000.000
m
Bhineka.com multiply.com
DealKeren rakuten.co.id

13. E - Commerce Development
Website Development Cost Total Cost
Development Fee Rp200,000,000 Development Fee
Rp216,000,000
& Setup
Payment Infrastructure Payment Yearly
Rp6,000,000
Ipaymu Setup Rp15,000,000 Fee
Monthly Fee Rp500,000 Domain Yearly Fee Rp30,000,000
Total Cost Rp252,000,000
Domain / Hosting
Masterweb
Dedicated IIX Rp1,000,000
Setup
Monthly Fee Rp2,500,000

14. E - Commerce Partnership Trusted Seller
Yearly Fixed Fee IDR. 375,000
Sales Margin 3,9%
Contract Term 1 Year
Item Registration *Unlimited
Est. Sales Revenue 2011 IDR. 32 Bio
Website Status Trusted Merchant
Daily Visitor 1,203,537 Yearly Fixed Fee IDR. 555,000
Daily Page View 3,819,123 Sales Margin 3,9%
Indonesia Rank 19 Contract Term 1 Year
Member 4,6 Million Item Registration *Unlimited
*For start up Mercahant
Trusted Business
Starter Package Advance Package
Yearly Fixed Fee IDR. 925,000
IDR. 5 Mil IDR. 8 Mil
Sales Margin 3,9%
100 products 250 products Contract Term 1 Year
Item Registration *Unlimited

15. E - Commerce Partnership
Payment Simulation Multiply Merchant Customer
Product Price = IDR. 500,000 IDR 19,500
Margin 3,9%
Merchant get IDR. 480.500
Delivery apprx = IDR. 10,000 IDR 10,000
(Depends on Product Weight)
Customer paid with both of IDR 500,000
Credit Card and Bank transfer

16. E - Commerce Partnership Platinum Plan
Monthly Fixed Fee IDR. 5,5 M
Sales Margin 4%
Contract Term 1 Year
Item Registration 5,000
Est. Sales Revenue 2011 IDR. 19,8 Bio
R-Cabinet 1 GB
Website Status
Gold Plan
Daily Visitor 21,837
Monthly Fixed Fee IDR. 3 M
Daily Page View 74,246
Sales Margin 5%
Indonesia Rank 510
Contract Term 1 Year
Member 35.000
Item Registration 2,000
R-Cabinet 500 MB
Silver Plan
Monthly Fixed Fee IDR. 1,5 M
Sales Margin 6%
Contract Term 1 Year
Item Registration 1,000
R-Cabinet 250 MB

17. E - Commerce Partnership
Payment Simulation Rakuten Merchant Customer
Product Price = IDR. 500,000
Margin 4% IDR 20,000
Merchant get IDR. 480.000
Delivery apprx = IDR. 10,000 IDR 10,000
(Depends on Product Weight)
IDR 16,500
Credit card charge 3,3%
IDR 526,500
Customer paid with Credit Card
Customer paid with Bank Transfer IDR 519,000
IDR. 9,000

18. THANK YOU
Thanks to everyone, vendors, partner and article who contribute to my research.

19. E - Commerce Category
1. Classified Ad
Daily Page
Portal Name Daily Visitor Indonesia Rank
View
Kaskus.co.id 1.415.366 23.480.929 7
tokobagus.com 383.831 3.819.123 19
berniaga.com 117.312 1.255.236 45
Kaskus is the number one of the Classified Ad Category
because of their big and loyal member, and it’s contain
numbers of seller which sell their product cheaper than
other.
Tokobagus.com's total transaction value in December 2010
reached IDR 300 billion from 90 thousand transactions, from
fashion products, information technology, handicrafts,
books and games.
http://en.indonesiafinancetoday.com/read/2864/E-Commerce-Continues-to-Rise-
BACK

20. Classified Ad
Procedure
Deliver the product
Transfer a
payment
Join the Classified
Visit website Ad Webbsite
Classified Ad
(TokoBagus)
Merchant
Customer
Directly Call the Merchant to Purchase a product
Customer : Visiting tokobagus.com and looking for the product that have been upload by merchant
Merchant : Join and upload the product that will be sell at tokobagus.com
Tokobagus : Provide an Classified Ad system that customer can directly interact with merchant
Customer : View an item at tokobagus.com and directly call the merchant to purchase an item
Merchant : Respond an make a good relationship with customer
Customer : Directly transfer the payment into merchant account
Merchant : Sent the item after received a payment from customer
BACK

21. Classified Ad
berniaga.com
Kaskus.co.id
Tokobagus.com
BACK

22. E - Commerce Category
2. Market Place
Daily Page
Portal Name Daily Visitor Indonesia Rank
View
Multiply.com 769,043 4,022,097 46
Tokopedia.com 107,303 2,414,327 66
Dinomarket.com 45,191 343,454 162
2 Juta
Active Member
35,000
Merchant
17
Merchant Category
500
New Mechant per Month
50,000
New Product per Month
RP. 1.6 Billion
Transaction value per Month
BACK

23. Online Market Place
Deliver the product
Procedure
Send Recieve Transfer a
Confirmation payment
Join the online
Visit website market place
Online Market
Place
Merchant
Customer (Multiply)
Purchase some
product and Purchase Order
send a payment
Customer : Visiting multiply.com and looking for the product that have been upload by merchant
Merchant : Join and upload the product that will be sell at multiply
Customer : Purchase an product on multiply.com, pay via credit card, internet banking, or bank transfer
Multiply : Automatically generated the purchase order on the merchant account
Merchant : Send the product after received the payment confirmation from multiply’s system
Customer : When the product was received so customer must make a receive confirmation to multiply’s
system
Multiply : Transfer the payment into a merchant account
BACK

24. Market Place
Multiply.com Tokopedia.com Dinomarket.co
m
BACK

25. E - Commerce Category
3. Online Retailer
Daily Page
Portal Name Daily Visitor Indonesia Rank
View
Bhineka.com 158,189 822,580 53
Lazada.co.id 149,560 897,360 54
Zalora.co.id 78,832 457,226 131
Bhinneka.com, which sells
information technology
products like
computers, targets a 20
percent increase in revenues
this year from last year's of IDR
80 billion.
http://en.indonesiafinancetoday.com/read/2864/E-Commerce-Continues-to-Rise-
BACK

26. Online Retailer
Procedure
Deliver the product
Visit website
Online Market
Customer Purchase some Place
product and (Bhinneka)
send a payment
Customer : Visiting bhinneka.com and looking for the item that have been upload by Bhineka
Customer : Purchase an item on bhinneka.com pay via credit card, internet banking, or bank transfer
Customer : Transfer a payment
Bhinneka : Deliver the item to customer
BACK

27. Online Retailer
bhinneka.co
m
Lazada.co.id
Zalora.co.id
BACK

28. E - Commerce Category
4. Group Buying
Daily Page
Portal Name Daily Visitor Indonesia Rank
View
disdus.com 47,242 212,589 214
Livingsocial.co.id 30,749 113,772 324
dealgoing.com 3,427 41,129 2,292
DealKeren has more than 300 thousand members and more
than 300 merchants who are already working together.
Currently there are 80 deals with 50 thousand transactions per
month, which revenue reached US$ 250 thousand per month
and growing. Based on statistics collected by DealKeren,
approximately 55% of users are women aged 25-35 years, other
than that 70-80% of users live in Jakarta, a natural considering
that most of the deals was located in Jakarta.
http://dailysocial.net/en/2011/07/04/dealkeren-post-livingsocial-acquisition/
BACK

29. Promote to Register as Member
Group Buying
Friends
Buy a Deal Procedure
Register as Member Join Partnership
Group
Buying
Merchant
Customer (DealKeren)
Buy a Deal Create a Deal
Generate a deal voucher
Customer : Visiting dealkeren and register as member to start buying
Merchant : Join as partner and register the promotion
Dealkeren : Provide a daily deal for customer
Customer : View and buy a deal from dealkeren and transfer into dealkeren account
Merchant : Create a deal and uploading into dealkeren site
Dealkeren : Automatically generate a deal voucher and send into customer account
Customer : Promote to his/her friends
Dealkeren : Generate a point to Customer when the Customer’s referalls register and buy a deal
BACK

30. Group Buying
Disdus.com Livingsocial.co.id Dealgoing.com
BACK

31. Customer Study
Good E-Commerce
118
Customers are getting confidence using e-
120 commerce with the help of their friends’
100 recommendation, and they need an e-commerce
services that are trustworthy and easy to be
80 accessed
60
38
40
18 18 17 15
20
0
dsresearch-ecommerce-may11
224 Respondents
175 Females
49 Males
BACK

32. 120 112
Customer Study
100
Purchasing Product
Female customer tend to buy clothes, shoes, and
80 personal cares; while male buy shoes, gadget and
gadget accessories.
60
37
40 30
20 15
10 8 7 5
0
dsresearch-ecommerce-may11
224 Respondents
175 Females
49 Males BACK

33. Customer Study
The amount of transaction
118
120
The products that customer buy like
100 clothes, shoes, and accessories tend to cost
around IDR. 500,000. Customer still don’t feel
80 safe to spend more than IDR. 500,000 because of
the Trust Issue.
60
38
40 25 25
18
20
0
IDR. 100,000 - Less than IDR Less than IDR. Any amount Less than IDR.
500,000 5 Mil 100,000 1 Mil
dsresearch-ecommerce-may11
224 Respondents
175 Females
49 Males
BACK

34. Customer Study
57% Payment Method
60%
Customer tend to pay via bank transfer or cash
on delivery rather than using credit card because
50% the traumatic effect about credit card fraud in
Indonesia.
40%
28%
30%
20%
7% 8%
10%
0%
Bank Transfer COD Credit Card Other
(Paypall, etc)
Source: Direktorat e-Bisnis Ditjen Aplikasi Informasi Komenkominfo 2011
BACK

35. Customer Study
BACK