Digital Momentum: Indonesia’s E-Commerce Sector Surpasses $29 Billion in Transactions Despite Value Dip

Indonesia’s e-commerce sector reports transactions worth $29 billion in 2023, with a slight decrease in value but a significant rise in transaction volume. Digital banking services and transactions through digital payment platforms show robust growth, reflecting the country’s dynamic digital landscape and the government’s push for digitalization.

18 January 2024 – Indonesia’s thriving e-commerce sector marked a substantial Rp 453.75 trillion ($29 billion) in transactions throughout the past year, according to a statement by a central bank official on Wednesday. Despite a marginal 4.73 percent decrease in the value of transactions from the previous year, the sector showcased resilient growth with a notable surge in transaction volume.

Bank Indonesia’s Deputy Governor, Fillianingsih Hendarta, shared insights during a news conference in Jakarta, stating, “In terms of volume, e-commerce transactions have consistently risen, reaching 3.71 billion transactions last year, a notable increase from 3.49 billion in 2022.”

Digital banking services also experienced a significant upswing, witnessing a 13.48 percent year-on-year rise in transaction value, reaching Rp 58,478.24 trillion in 2023. Projections for the current year suggest that digital banking transactions are poised to reach Rp 63,803.77 trillion.

Transactions facilitated through digital payment platforms surged impressively, with a 43.45 percent year-on-year increase, totaling Rp 835.84 trillion in 2023. Anticipations indicate that this figure is set to surpass Rp 1,000 trillion by the end of the year.

Aligned with the government’s digitalization initiatives, the use of QR codes in both domestic and cross-border transactions witnessed a remarkable 130 percent year-on-year increase, reaching Rp 229.96 trillion. Bank Indonesia reported a significant adoption of the QR Code Indonesian Standard (QRIS), with neighboring countries such as Singapore, Thailand, and Malaysia embracing the system to facilitate cross-border transactions.

Fillianingsih highlighted the cross-border applicability of the QR Code Indonesian Standard (QRIS), noting its adoption by neighboring countries as a testament to its efficacy in simplifying transactions across borders. -ref: JakartaGlobe

Author: Terry KS

Share This Post On