Last updated April 13th, 2019.

With the start of the ASEAN Economic Community, Southeast Asia’s physical markets aren’t the only ones getting a trade boost. The region’s e-commerce scene is seeing greater cross-border trade as well.

Indonesia is the rising star of Southeast Asia’s e-commerce sector because of its sheer size and potential growth rate. By far, Indonesia is the most populous country in the ASEAN region with over 230 million people.

You might assume that Indonesia’s massive consumer market would be oversaturated and not viable for starting an e-commerce business. This would be incorrect.

Low levels of economic development along with an internet penetration rate barely above 50% gives Indonesia more e-commerce opportunities than its neighbors. That’s despite Indonesia’s huge population and thousands of local businesses already seeking to profit off it.

Figures recorded in 2015 show that with an internet penetration rate of only 35% the number of locals online will nearly double to 63% by the end of 2020. In other words, over 160 million Indonesians will have access to the internet in under three years.

Note that Indonesia has “mobile-first” internet accessibility. As such, and similar to most other developing nations, Indonesians usually gain online access through their smartphones instead of computers.

Indonesia E-Commerce: 4 Things You Should Know

Indonesian e-commerce has existed for awhile. But there are a few factors that hinder growth. Online shopping penetration rates are rather disappointing. The proportion of online sales to retail sales are as well, just to give two examples.

With some background information out of the way, here are four facts you should know about Indonesia’s e-commerce sector. The industry does have its flaws, but I nonetheless think you’ll find better growth prospects here than anywhere else in Southeast Asia.