Skip to main content

What Makes E-commerce Work in Indonesia?

From Wall Street Journal

By Resty Woro Yuniar
March 3, 2015

E-commerce companies in Indonesia have found a recipe for success by going after a growing pool of consumers with access to the Internet but not the brick and mortar shops selling what they want.

“E-commerce is growing because Indonesians are finding it increasingly easy to get online, and the offline stores have not been able to keep up with their demand,” said Susie Sugden, a co-founder of Vela Asia, a premium fashion e-commerce retailer that offers hard-to-find local and international brands, such as Lee Cooper and Jack Nicklaus.

The company recently received $1.5 million in investment funding from Singapore-based venture capital firm Majuven. The investment was one of dozens that have occurred in the Indonesian e-commerce sector over the past year, including the biggest so far in Indonesian ecommerce, a $100 million investment in Tokopedia by Japan’s Softbank and U.S.-based Sequoia Capital.

“E-commerce also offers more convenience,” said Kusumo Martanto, CEO of Blibli.com, a popular online business-to-consumer marketplace that plays on the Indonesian word for buy. Aside from the ability to shop from the comfort of home, most e-stores also offer round-the-clock customer care and various payment methods. Mr. Martanto says Blibli has partnered with 11 banks to offer more payment options for customers without credit cards. “And customers can exchange, refund, or return the purchase,” he said. Some physical stores won’t accept such transactions.

There are also plenty of opportunities for growth in Indonesia’s second- and third-tier cities, which still have few shopping malls – and thus, few brand options – when compared to the capital Jakarta, with more than 170 malls.

For detailed story, visit here.

Comments

Popular posts from this blog

Goverment to Build New Port in Subang or Indramayu

From The Jakarta Post
April 2, 2015

The government has changed its plan to build a new port in Cilamaya and is seeking a better location in Subang or Indramayu, West Java.

Vice President Jusuf Kalla said the government needed to build a new port but it would not be in Cilamaya.

The Vice President, who visited Cilamaya with several ministers, including Coordinating Maritime Affairs Minister Indroyono Susilo and Transportation Minister Ignasius Jonan on Thursday, said the new port would be built east of Cilamaya, either in Subang or Indramayu.

Kalla said the main reason to move the new port’s location to another regency was because waters in the area were already crowded by offshore mining activities and oil tankers transporting crude oil to Jakarta and other cities.

The government has allocated Rp 34.5 trillion (US$2.6 billion) to construct a new port, as Tanjung Priok Port is deemed too crowded.

For detailed story, visit here
The government has changed its plan to build a new port in Ci…

POSCO to lift Indonesia investment to $11 billion over next 5 years: Jakarta

From Reuters
Oct 19, 2012


South Korean steelmaker POSCO will almost double its investment in Indonesia to $11 billion over the next five years, from $6 billion currently, Chief Economics Minister Hatta Rajasa said on Friday.
The world's fourth-biggest steelmaker, already has a multi-billion dollar joint venture with Indonesian state-owned PT Krakatau Steel, the country's biggest steel producer.
Earlier this year, the South Korean firm's affiliate POSCO Engineering & Construction, formed a consortium to build two 300-megawatt power plants on Indonesia's Sumatra island, worth around $1 billion.
A POSCO spokesman in Seoul said the South Korean firm has yet to make detailed investment commitments in Indonesia, and noted other partners would jointly invest in any projects.
Foreign direct investment in Indonesia stayed strong in the second quarter, showing the G20 member remained a magnet in a troubled global economy and that changes in mining ownership rules are not cutting i…

March Inflation Limits Bank Indonesia’s Room to Cut Interest Rates

From The Jakarta Globe
April 1, 2015

Inflation increased slightly in March, data from the Central Statistics Agency, or BPS, showed on Wednesday, as prices were pushed up by higher prices for fuel and rice and continued weakening of the rupiah.

Analysts said stronger inflation would limit Indonesia’s central bank’s ability to further reduce its key interest rate. The BPS announced March’s headline inflation rate was 6.38 percent, compared with 6.29 percent a month earlier.

“This is broadly in line with our forecast and the consensus median,” said Dian Ayu Yustina, a Jakarta-based economist with Bank Danamon Indonesia.

The administration of President Joko Widodo has reformed the fuel price policy to a regulated price that can fluctuate according to the global oil price and the exchange rate.
Looking forward to the rest of the year, analysts Wai Ho Leong and Angela Hsieh from Barclays said the path of inflation was still benign.

They projected inflation to average 6.5 percent …