E-commerce In Indonesia: Tradition Meets Technology

2 min read –

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

No need for hour-long πŸ›Ά boat rides to markets anymore.

Now, Shopee πŸ“² 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 πŸ“Ί to showcase their trendy offerings. From a two-story warehouse, young women πŸ“¦ 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 πŸ’ͺ with how to handle the first and last miles of deliveries.

But in Indonesia, the middle mile πŸ›£ 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 πŸ›© to South Kalimantan – Fatimah’s shoes navigate through obstacles, including forest fires πŸ”₯.

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 πŸ€” on China .

Fatimah’s village sees e-commerce as a gateway πŸšͺ 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 πŸ’ƒ of online shopping unfoldsβ€”lip gloss, moisturizer, and baby’s milk bottleβ€”all from Shopee.

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

It also shows how e-commerce helps bind together a nation of skyscrapers 🏒 and jungles 🌴, miniskirts πŸ‘— and hijabs πŸ§• .

According to Statista, the value of e-commerce sales in the ASEAN region is forecasted to reach πŸ’²150 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 πŸ’Ή or due to Lazada’s internal reasons πŸ‘¨β€πŸ’Ό ?

What do you think? Leave your opinion in the comments πŸ™ (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

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