The document summarizes the trend of e-commerce in Indonesia. It discusses Indonesia's population and economic growth, improving technology infrastructure like internet access and mobile adoption, and the rise of e-commerce. Payment methods for e-commerce are also increasing in popularity, like mobile wallets. Online shopping is growing among Indonesian consumers, especially through social media platforms. While e-commerce is still a small percentage of GDP, small businesses are seeing increased sales through online sales. The document concludes that e-commerce in Indonesia will continue growing as infrastructure and online access improves.

1. The Trend of E-Commerce in
Developing Country: Indonesia
Presenter : Nurfazlina Binti Haris
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2. CONTENTS
Introduction
Economy & Technology Infrastructure
Trend of E-commerce in Indonesia
Payment Method
Indonesia Online Consumer
Access trend in Internet
SMEs E-commerce
Conclusion
2

3. INTRODUCTION
242.3 million of Population
4th largest population in the world
Lowest contributor of GDP in South East Asia
Position as a lower middle income class (world bank 2012) 3

4. INTRODUCTION
Susilo Bambang Yudhoyono
Recently, Indonesia government is inviting foreign investor to
create inside competition (Chulmo&Yulia , 2010)
Expanding IT infrastructure by allocating at least 10% of $12
trillion in total investment in 2011 - 2030 (Shirley, 2011)
Political aspect has gone wide change than previously and
this also still effect the E-commerce policy bond with
Indonesia Civil Codes which affect the e-signature and legal
data protection issues. (Raman & yap, 1996 ; Della , 2011)
4

5. INTRODUCTION
“E-Commerce is a universal concept which covering any
form of business transaction or exchange of trade by
using the IT and Telecommunication” (Whitely, 1998)
“The Use of the Internet and the Web to transact business or
digitally enabled commercial transactions between and among
organization and individuals.”
(Kenneth & Jeffrey, 2007)
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6. Economic
Infrastructure
As due to the success to be ranked at 44th among 139 countries in a
Global competitiveness report 2011As the Economic pressure rising
annually, both opportunity and challenge to related bodies and
institution in Indonesia, where push improve their
business, legislative, and IT infrastructure for a bright future.
(Shirley, 2011)
Gross Domestic Product
2011
2008
Figure: GDP of Indonesia from 2008 to 2011
(World Bank, 2012)
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7. Technology Figure: Internet User in Indonesia
Infrastructure 50,000,000
43,618,615
40,000,000
30,000,000 26,193,906
18,602,209
20,000,000 16,429,083
10,000,000
0
2006 : Third
generation (3G) Ownership of
has deployed in personal computer 2008 2009 2010 2011
Indonesia and (World Bank, 2012)
steadily increase
many operators from
compete to grab 2010 : WiMAX
mobile user 2006 (1.4 million) to successfully
attention 2008 (2.5 million). been deployed
Then 2008 : Government
enhancement to of Indonesia
3.6 Mbps of allocate 1.93
HSDP access million for 2.3 GHz
technology WiMAX
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Chulmo & Yulia (2010); Basharat & Marayedis (2010); Donny & Mudiardjo (2009)

8. Technology
Infrastructure
Indonesia fixed lined Internet
bandwidth is also more expensive
than mobile phone services.
Warnet (Internet café) has become a
popular place to access the Internet.
(Deloitte Access Economies, 2011)
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9. Trend of E-Commerce in
Indonesia
E-commerce was still underdeveloped which is
in 2010, Indonesia only spends US$230 million
per year whereby less than 0.1% of GDP.
It is estimated that only 1.6% of direct
contribution of the internet to the Indonesia
GDP in 2011 (Deloitte access economics, 2011)
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10. Trend of E-Commerce in
Indonesia
Payment Method
A survey has been made and most online consumer Spent only
RP. 500,000 in E-Commerce
(Varitrans& Dailysocial, 2011)
Telkomsel was introducing a mobile wallet service known as T-
Cash, to allow and promoting their customers to use their mobile
phone to buy and pay for services online through the use of SMS.
Payment was made from
(Varitrans& Dailysocial, 2011) 10

11. Trend of E-Commerce in
Indonesia
Indonesian mostly reflect to the affection of purchasing in E-
commerce, especially around the workplace, was the place for
people to get awareness about the Internet.
Education level and age also are the factor for the intention of
purchasing in E-commerce. (Rofiq, 2011)
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12. Trend of E-Commerce in
Indonesia
Indonesia Online Consumer
Characteristic of Indonesia internet user’s toward making a
purchasing in online was also formed from them:
Dispositional trust (Trust level of person in general)
+ Interpersonal trust (Trust arises from outside influence)
Rather than the issues of risk perception in privacy
and securities. (Hidayanto,2012)
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13. Trend of E-Commerce in
Indonesia
(Varitrans& Dailysocial, 2011)
13

14. Trend of E-Commerce in
Indonesia
Indonesia Online Consumer
WHERE ARE THEY SHOPPING IN ONLINE?
Most of the consumer refers to the “Facebook”, “Kaskus”, and
“Tokobagus”, websites to shop
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15. Trend of E-Commerce in
Indonesia
SMEs Internet Business in Indonesia
SMEs E-commerce in Indonesia, increase their sales
revenue with positive value from 41% - 60 %
(As’ad & Ahmad ,2012)
Cost of maintenance for websites is less than company
total capital
(Deloitte Access Economies, 2011)
15

16. Trend of E-Commerce in
Indonesia
SMEs Internet Business in Indonesia
C o n st ra i nt fa c to rs
Poor
Internet Connectivity
Infrastructure
Poor
Bank Administration
Strategic
Goods distribution to buyer Poor Skills
(As’ad & Ahmad ,2012)
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17. Trend of E-Commerce in
Indonesia
Access trend among Indonesia Internet User
The Indonesia mobile phone user which uses to access the Internet
(Deloitte Access Economies, 2011)
Based on the study, Indonesia has a huge opportunity for grown in M-
business, moreover Indonesia was overpopulated with the Smartphone and
mobile phone internet application (Carrie et al. 2012)
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18. Conclusion
The E-Commerce in Indonesia was relatively increased from time
to time. SMEs and Internet user are aware of the online
commerce advantages. The government of Indonesia also aware
of the advantage of utilizing the Internet’s capabilities, to
increase the country GDP, society's welfare, and country’s
infrastructure especially in, technology and health.
Recommendations
Improving the country's technology infrastructure,
Establish better procedures and policy especially in payment
method,
Provide better product competitive and customer support in the
online commerce.
Transform the business and government administration to use
the internet as a strategic tool.
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19. References
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Theory of Planned Behavior in Indonesia,"Management and Service Science (MASS), 2011 International Conference on , vol., no., pp.1-4, 12-14.
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• *16+ Carrie Y., McMillan, J. et al. “2012 Outlook for The Retail and Consumer Products Sector in Asia; Indonesia” p. 34. PriceaterhouseCooper (PWC)

20. Thank You !
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