Indonesia has emerged as the frontrunner in online spending in Southeast Asia, contributing over 50% of the region’s total gross merchandise value (GMV) in 2022. According to a report by Momentum Works, Indonesia’s online purchases amounted to a staggering $51.9 billion, surpassing other countries in the region by a significant margin. Shopee and Tokopedia were identified as the most popular e-commerce platforms in Indonesia. The study highlights the continuous growth potential of the e-commerce sector in Southeast Asia, while also noting the entry of TikTok Shop and its ambitious plans for expansion in the region’s competitive e-commerce market.
JAKARTA, 16 June 2023 – According to a recent study conducted by Singapore-based venture firm Momentum Works, Indonesia has become the leading online spender in Southeast Asia, contributing more than 50 percent of the region’s total gross merchandise value (GMV) in 2022. The archipelago’s spending amounted to US$51.9 billion, which is nearly 13 times higher than Singapore’s US$4 billion. The study analyzed data from six Southeast Asian countries, including Malaysia, the Philippines, Singapore, Thailand, and Vietnam, to determine the total GMV of US$99.5 billion for the region. The report highlighted Indonesia’s dominance and identified popular platforms such as Shopee and Tokopedia as the most commonly used e-commerce apps in the country, accounting for 36 percent and 35 percent of the country’s GMV, respectively.
Despite the overall growth in online spending from 2021 to 2022, which increased by 14.2 percent, the report noted a decline compared to the previous year’s growth of 58.9 percent. The reopening of retail stores after the COVID-19 pandemic and factors like inflation, rising interest rates, and increased commodity prices have impacted consumer spending power and led to reduced marketing and operational investments by e-commerce platforms in the region. However, the report predicts continued growth in e-commerce, citing the positive performance of firms such as TikTok Shop and Lazada, as well as the industry’s overall potential for expansion driven by income growth, infrastructure development, and improved fulfillment capabilities.
Shopee emerged as the largest e-commerce player in Southeast Asia, with a GMV of US$47.9 billion in 2022, followed by Lazada at US$20.1 billion, Tokopedia at US$18.4 billion, and TikTok Shop at US$4.4 billion. The report also highlighted TikTok Shop’s efforts to expand into the region and its goal to triple its regional GMV, although the success of this endeavor remains uncertain. Despite offering a unique experience compared to traditional e-commerce platforms, the report emphasizes the need for TikTok to establish itself within Southeast Asia’s mature e-commerce content ecosystem.
Overall, the study affirms Indonesia’s position as the dominant force in Southeast Asia’s online spending landscape, while also highlighting the evolving dynamics and potential growth opportunities for e-commerce in the region.