Indonesia is the largest economy in the region, and is poised for enormous growth for years to come.
The country has the fourth biggest population in the world, yet the least-developed ecommerce market in Southeast Asia, representing just 1% of all retail sales in Indonesia in 2015.
Underscoring the size of the opportunity, the market size is expected to rise dramatically from just over $3 billion today to $11 billion in 2019. The bright outlook is driven by demographic trends.
Less than 40% of the population is currently online, bank penetration is under a quarter, and the number of debit and credit cards issued is at only 15%.
As with many developing economies, the shift online is happening through mobile, with over 90% of online users in Indonesia going online via their phone.
Indonesia is a highly regulated market, where a local entity is typically required to process locally.
Furthermore, the Indonesia rupiah (IDR) cannot be repatriated.
However, Adyen has made it possible for merchants to offer domestic payment methods in Indonesia with settlement in US dollars.
What Adyen offers
Through a single integration Adyen enables merchants to offer all of these local payment methods, while providing consolidated reporting and transaction level reconciliation. In addition, Adyen provides the ability to settle funds outside Indonesia.