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Cintasia

E-commerce In Indonesia: Tradition Meets Technology

January 10, 2024

2 min read –

In a remote Borneo village, Fatimah is looking for the perfect 👠 wedding shoes.

No need for hour-long 🛶 boat rides to markets anymore.

Now, Shopee 📲 connects her with global merchants.

Shopee weaves through Indonesia’s 13,000 islands 🏝 , revealing the nation’s diverse tapestry.

Fatimah snagged a deal on her dream sandals. The magic ✨ begins at Patris, a family-owned online shoe business in Bogor (South Jakarta).

Ricco and Maria, the founders, embraced live-streaming 📺 to showcase their trendy offerings. From a two-story warehouse, young women 📦 pack and ship thousands of pairs daily.

Indonesia’s infrastructure boom facilitates deliveries, but the journey faces challenges 😰 .

No proper roads or postcodes in some areas mean local couriers 🏍 navigate sampans and swamps .

E-commerce firms everywhere struggle 💪 with how to handle the first and last miles of deliveries.

But in Indonesia, the middle mile 🛣 is also a challenge, says Handhika Jahja, the head of Shopee Indonesia.

From the warehouse to the Bogor hub, a truck ride, an airport transfer, and a plane journey 🛩 to South Kalimantan – Fatimah’s shoes navigate through obstacles, including forest fires 🔥.

Fatimah’s shoes journey showcases how smartphones have revolutionized 🤘 e-commerce in Indonesia.

Indonesia embraces ❤️ and resists globalization at the same time, with protectionist policies and a wary eye 🤔 on China .

Fatimah’s village sees e-commerce as a gateway 🚪 to new opportunities.

Rizki Nur Annisa, a local woman making 🐠 fish crackers, turned to Shopee during the pandemic, expanding her market beyond local shores.

In Fatimah’s house, the joy 💃 of online shopping unfolds—lip gloss, moisturizer, and baby’s milk bottle—all from Shopee.

The journey from “wish to doorstep” reflects Indonesia’s evolving landscape 🌆 .

It also shows how e-commerce helps bind together a nation of skyscrapers 🏢 and jungles 🌴, miniskirts 👗 and hijabs 🧕 .

According to Statista, the value of e-commerce sales in the ASEAN region is forecasted to reach 💲150 billion USD in 2025.

More than half of that being from Indonesia.

Despite the strong fundamentals and promising outlook of the e-commerce sector in the Asean region, ⬆ ups and ⬇ downs show up.

Are the recent regional lay-off at Lazada due to external market forces 💹 or due to Lazada’s internal reasons 👨‍💼 ?

What do you think? Leave your opinion in the comments 🙏 (in the LinkedIn post, link below).

Follow us at CINTASIA for more stories and insights on doing business in Indonesia.

Source : The Economist
Image : Rosa Panggabean

PS: If you want the complete article (10 min read) from The Economist, send us a direct message to request a copy (limited free links).