Indonesia binges on e-commerce

Lego house near the water, Sumatra

PITY THE Indonesian courier. Delivering a package on the archipelago can be a daunting task. The country’s 13,466 islands stretch across almost 3,000km and to reach a distant atoll might mean waiting weeks for a boat. Many people in remote areas lack a formal address; their roads are nameless and their houses often without number. Those with addresses sometimes rely on local landmarks—“the house by the big tree”, for example. Even in big cities many streets have the same name.

Yet e-commerce startups and their investors are willing to tackle logistical headaches to become established in a promising market. Since 2015, when estimates began, the value of goods sold online has roughly doubled each year, to $8-12bn presently. Only about 15% of Indonesia’s population of 265m are believed to shop online but that should rise along with incomes and internet use. A report...



via Business Feeds

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