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B2B Market would be Double the Size of B2C Market by 2022
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Indonesia is the most populous nation in Southeast Asia with an estimated population of 262 million in 2017. The Indonesian economy, measured in terms of GDP, is the largest in SEA as of 2017. Indonesia’s GDP annual growth stood at 8.4% for 2017 growing from $932.45 billion in 2016 to $1,010.94 billion in 2017. Indonesia’s GDP per capita at current prices stood at $3,859 in 2017 and is considerably lower than its regional peers such as Singapore and Malaysia.Internet penetration has increased dramatically in Indonesia. Internet penetration in Indonesia was 58.3 % in 2017. Mobile-based data services have been the main reason for the sudden increase in Internet penetration. Indonesia, comprising more than 17,000 islands, is one of the largest archipelagos in the world. This makes it challenging to develop nationwide infrastructure, which lowers the Internet penetration in the country compared to that in some of its neighbouring countries.Indonesia has seen a strong demand for mobile services over the past several years. The country is estimated to have 412.7 million mobile subscriber identification module (SIM) cards in 2017, representing a penetration rate of 157.6%.The Indonesian eCommerce market is estimated to be $21.2 billion and is forecasted to grow at a CAGR of 37.4% to reach $104 billion. The B2C segment contributes 35.8% of the total eCommerce market size and the B2B segment represents 26.4%. The B2B eCommerce market in Indonesia is considerably smaller compared to its regional peers such as in Singapore, Malaysia, and Thailand, but larger compared to that in Vietnam.Thailand has the largest B2B market in 2017 valued at $52.0 billion and is likely to remain so during the forecast period. B2G eCommerce is the major contributor to transactions in Singapore, Malaysia, and Thailand. In some of these countries, more than 90% of government procurements are done through online channels.Underdeveloped logistics is one of the biggest issues in Indonesia. This is one of the main reasons why all the regions in Indonesia are not growing at the same pace as Jakarta. The study details about the factors leading to the development of the B2B eCommerce market and how the government is playing a major role in the development of the B2B eCommerce market. The study also provides the overall market size for the B2B eCommerce market in Indonesia. The Indonesian economy is largest in the whole Southeast Asia, as it has the largest GDP in the region. The GDP is expected to reach around $1,580 billion in 2022. Author: Sandeep Bazaz
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