Business & Finance

E-commerce in Indonesia is the modern industrial revolution says McKinsey

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The concept of e-commerce was ideated in the United States of America and has been brought to the other countries. The revolutionizing idea has been adopted by many countries to drastically change various industries and consumer behavior. It has changed the course of doing business for the SMEs as the majority of the consumers did not know that the products exist in the market before.

The latest survey report from the famous house McKinsey casts light on the digitized market of Indonesia. The report literally tells the readers how the economic development of the country has transformed due to the advent of the e-commerce system in the Indonesian market.

The report said, “Indonesians are among the world’s most avid users of social media, in a country with a rapidly growing digital ecosystem of online commerce, ride-sharing services, media distribution, financial services, and more. While these factors have created significant business opportunities and new jobs, improved access to services, and promoted greater connectivity with global society, Indonesia must still overcome several challenges to become a truly digital economy.”

By the time span of 5 years between 2015 and 2020, Indonesia is setting ground to add more than 50 million new users with a 50% or higher penetration rate. The current worth of the market is $8 Billion.

The introduction of smart phones is a revelation for such a magnificent development. The country has 30 million shoppers online and the volume is increasing at a whopping rate of 12% annually. By the end of 2022, the online market worth will increase to $55 Billion. It will also result in more jobs and economic development of the country in the long run.

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