Caption: Foreign-funded e-commerce now controls 86% of Indonesia's market Source: Katadata reported on December 29, according to Indonesia's ** report, data from Momentum Works showsForeign-funded e-commerce now controls 86% of the Indonesian market, and the products need to be regulated urgently. Foreign e-commerce here mainly refers to Shopee, Lazada, and TikTok, which acquired Tokopedia.
According to a June 2023 report, Momentum Works estimated the total transaction value or GMV of e-commerce in Indonesia at $51.9 billion last year. (Scan code at the end of the article**).
If you follow the platform in detail, it is explained below:
Shopee 36% is about $18.7 billion (Rp 292 trillion);
Tokopedia 35% about $18.1 billion (28.2.)Rp 4 trillion);
lazada 10% about 51$900 million (80.0.)Rp 5 trillion);
bukalapak 10% about 51$900 million (80.0.)Rp 5 trillion);
TikTok 5% is about $2.6 billion (40..)Rp 6 trillion);
Blibli 4% about $2.1 billion (32.1 billionRp 6 trillion);
Among them,TikTok and Tokopedia, Shopee, and Lazada combined for 86% of their GMVs, or about $44.9 billion (700.0.).Rp 7 trillion).
Recently, Ignatius Untung Surapati, former chairman of the Indonesian E-Commerce Association (IDEA), said that although the number of local e-commerce in Indonesia exceeds the number of foreign e-commerce, the market share is very small. In response to the fact that the Indonesian market has been hit by the low prices of foreign e-commerce platforms, and the living space of local micro, small and medium-sized enterprises has been gradually squeezed, the Ministry of Cooperatives and Small and Medium Enterprises believes that it is necessary to develop regulations on cost of sales (a.k.a. COGS) to regulate the products of e-commerce platforms**.
Teten, Minister of Cooperatives and SMEs, said: "Many local MSMEs are now unable to compete with these imports, as these low-priced goods** are often cheaper than domestic goods**. I think it is necessary to use the Tax Regulation Harmonization Law (also known as the "HPP Law") to regulate enterprises, so that there will be no more "cash burning" wars between e-commerce platforms, so as to increase corporate valuations and market share, so as to avoid micro, small and medium-sized enterprises from being hit by low prices. ”
Caption: Teten Masduki, Minister of Cooperatives and Small and Medium Enterprises, talks about TikTok-Tokopedia Source: Okezone
It is reported that Indonesia** is working hard to improve the regulations on e-commerce. However, the provisions regarding HPP have not yet been incorporated into the amended **Minister Regulation No. 31. (Scan code at the end of the article**).
In addition to this, Teten believes that imported products need to meet various regulatory requirements like local products, such as having a distribution license and a BPOM license.
Regarding the situation of Indonesian local companies under threat, Teten gave the example of a local Indonesian skincare brand that was affected by the war, according to him, before Chinese brands entered, local beauty brands dominated e-commerce sales. "Previously, there were five beauty brands in Indonesia leading the market. Now after being hit by cheap products, the market share of these local brands has declined in a short period of timeTherefore, I still recommend that the Ministerial Regulations be amended in the next three months to improve them, as the specific details of the HPP Regulations have not yet been incorporated into the policy. Teten said to Indonesia**.
It is worth mentioning that on the first day of the resumption of TikTok Shop, it was reported that the platform limited orders to all merchants in Indonesia, temporarily limiting 100 orders per day. Advertisements cannot be placed for the time being, and the delivery function of the small yellow car cannot be opened for the time being.
Source: 36 Krypton.
If the news is true, it may have a certain degree of impact on sellers in a short period of time. This means that TikTok's business development in Indonesia is still full of challenges. But soon there was also good news, according to compasco.data of the id, Harbolnas 12In the week of 12, TikTok Shop's FMCG transaction volume was estimated at IDR 193 billion.
compas.co.In a press statement on Wednesday, December 27, ID CEO Hanindia Narendratazai said: "12The 12 period was the highest ever increase in sales during Harbolnas in 2023, with FMCG (Fast Moving Consumer Goods) sales in e-commerce reaching IDR 279 billion and 9 million transactions. This value is 86% higher than the daily average of IDR 149 billion**.
Caption: TikTok Shop's FMCG transaction value is estimated at IDR 193 billion
Source: katadata
It is reported that 1212 discount periods, more than 480,000 brands are actively campaigning on TikTok Shop. Hanindia Narendratazai then said, "The contribution of TikTok Shop is quite significant, and we will continue to monitor the performance of TikTok Shop and look forward to what impact the separation of social** apps and sales will have on the future development of the Indonesian market." ”
In addition, according to foreign media sources,This morning (December 29), Tokopedia's head of communications, Aditia Grasio Nelwan, said in an interview with Indonesia**:"Both companies have already obtained the necessary licenses, and this period is a pilot period aimed at facilitating the transition of e-commerce transactions through PT Tokopedia, thisThe trial period will last several months and is carried out in the process of consultation, guidance and supervision by the relevant ministries and agencies, so there is no violation of the regulations.