Indonesian E-Commerce to Reach $130 Billion by 2020
March 10, 2016
The government of Indonesia expects e-commerce sales in the country to reach $130 billion by 2020. Rudiantara, the Indonesian minister of information and communication, said this week that e-commerce transactions were valued at $12 billion in 2014 and will rise to $25 billion by the end of this year. The big jump expected over the next few years reflects the government’s decision to allow direct foreign investment in the e-commerce sector, which was announced late last month.
The Indonesian government relaxed foreign ownership rules to encourage investment and IPOs in a quickly growing global sector. Foreign-owned companies that invest more than 100 billion Indonesian Rupiah ($7.6 million) can own 100 percent of an Indonesia-based e-commerce company, while smaller levels of investment trigger ownership caps designed to protect small and medium Indonesian e-commerce businesses.