Indonesian e-commerce still in infancy

324 views | 0 comments Feb 16 2012 22:14 CET

While Internet penetration in Indonesia is proceeding apace, with a total number of online users now in excess of 50 million, e-commerce has yet to establish itself as a part of Indonesian commercial culture, reports vivanews.com.

According to international consulting company Frost and Sullivan, there is strong e-commerce potential Indonesia but only if private and government institutions are willing to lay the foundations for growth. A lack of 3G telecoms infrastructure only 19 percent of total mobile coverage) means that Indonesians still tend to rely on 2.5G.

The e-commerce sector as a whole is currently dominated by advertisement (39 percent), games (11.54 percent and music videos (2.7 percent). Iwan Rachmat, a Senior Consultant at Frost and Sullivan claims that Indonesian is currently experiencing rapid growth, with the potential to grow tenfold by 2015 if it receives the necessary infrastructural and regulator support.