Retail & E-commerce

Indonesia’s large and relatively young population, coupled with a fast-growing middle class and high levels of consumer confidence, has been a key driver of expansion in retail and e-commerce. Physical retail spaces remain prevalent, with new malls opening across the country in 2019. Despite the sector’s positive performance in recent years, it will face headwinds in the short term amid the Covid-19 pandemic. Other challenges include infrastructure issues and slow technology adoption among some demographic groups, especially in rural areas. However, the medium- to long-term outlook of the retail sector looks bright. The burgeoning e-commerce market should help weather the impact of the Covid-19 pandemic, with companies adapting their services and interactions to accommodate customers who are relying on online and mobile offerings as they practise social distancing. Given the popularity of e-commerce and ride-hailing apps, it is expected that tech-based services will continue to expand to meet shifting consumer expectations. This chapter contains interviews with Kevin Aluwi, Co-CEO, Gojek; and Muhamad Fajrin Rasyid, Co-Founder, Bukalapak.