6 emerging market, Indonesia s President Joko Widodo has tapped for guidance the king of Chinese e-commerce: Jack Ma.Jokowi, as Indonesia s leader is known, further intensified the buzz surrounding his country s $2 billion e-commerce market with a stop at Jakarta s sprawling Mangga Dua bazaar last month, buying an iPad from a store belonging to web retail giant Bhinneka.com.Indonesia has an e-commerce market that McKinsey & Co. says can be one of the fastest-growing in the world, part of a digital economy adding $150 billion a year to gross domestic product by 2025.
All the more reason for Jokowi to turn to Ma, founder of Alibaba Group Holding Ltd., to advise his administration on how to supercharge online retailing in the country.
It does have that potential and I think that part of it boils down to also Indonesia, as a culture, being incredibly consumptive, said Adrian Li, managing partner of Convergence Ventures, which backs early-stage tech startups in Indonesia.
Indonesia s urban consuming class -- individuals with disposable income of more than $10 a day -- is growing by about 5 million a year to reach 86 million by 2020 amid rapidly expanding access to the Internet, according to McKinsey.
Online sales could reach 7 percent to 8 percent of the total retail market by 2020 from about 1 percent currently, it estimates.
The value of e-commerce could increase by as much as $15 billion over the next three years alone, the company estimates.Jokowi turned to Alibaba s Ma after touring the company s headquarters in Hangzhou, China in early September.