Home News Indonesia Targets US$571M in E-commerce Transactions This Year

Indonesia Targets US$571M in E-commerce Transactions This Year

The Indonesian E-Commerce Association (idEA) targets the transaction value of the National Online Shopping Day which will be held on December 12, 2019, to be Rp8 trillion (US$571.42 million) - Photo: InsiderStories.

JAKARTA (TheInsiderStories) – The Indonesian E-Commerce Association (idEA) targets the transaction value of the National Online Shopping Day which will be held on December 12, 2019, to be Rp8 trillion (US$571.42 million), a 14 percent increase from last year’s sales of Rp6.8 trillion.

“The value of online transactions always shows an upward trend. In 2017, the transaction value was recorded at Rp4.8 trillion, increasing to Rp6.8 trillion in 2018. Well, this year we want the target to reach Rp8 trillion,” said idEA chairman Ignatius Untung in a press conference in Jakarta on Monday (12/09).

The number of participating e-commerce firms is also up by 30 percent to 300 participants, with participants including noted marketplace Bukalapak, Lazada, fashion department store Mataharimall, hiking gear shop JalanPendaki, ticket seller BookMyShow, Elevania, and Mitra Adiperkasa (MAP).

The participants will offer discounts of up to 95 percent, excluding promotions from payment merchants and courier services, said Untung, adding that other participants included pet shops and home décor providers.

He said organizers had partnered with research firm Nielsen to provide data on buyers.

“Other than that, this year is the first time we’re focusing on involving more micro, small and medium enterprises,” he said.

Untung explained that idEA wants to open a new network involving many sectors in this event, one of the focus is the participation of grocery actors.

“Not only lifestyle products or electronic products, but we also want everything to be widely and easily marketed via digital. We also hope that platforms that market natural products can also be joined at Harbolnas this time,” said Untung.

The involvement of actors from various sectors in this event simultaneously increased market reaches for local products. On the other hand, local products are not limited to handicraft products, but also include lifestyle products to electronics.

Besides increasing participants, idEA will also conduct strict supervision related to promotions and discounted participants this year. With this, it is expected to eliminate the practice of sham discounting that can harm consumers.

“We are watching the discount, lest there is a company that makes a fake discount,” he stressed, adding discount supervision is also accompanied by the commitment of the participants and also the sanctions that apply to violators.

Untung said idEA together with the participants will make a letter of an agreement prohibiting fake discounts and arrange legal sanctions received if violated.

“We create sanctions for companies that violate, if violated, we will not participate in activities next year,” he revealed, adding based on data from the last year’s event, the annual online shopping managed to record significant sales of local products. As much as 46 percent of the items sold during the event in 2018 were local products and recorded an increase more than six times in transactions.

US$1=Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com