Indonesia, with its population of over 280 million people, has become one of Southeast Asia’s most dynamic e-commerce markets. Even the closure of TikTok Shop in October 2023 couldn’t slow its momentum. The country’s young, digital-first consumers have made online shopping a daily habit, with live commerce emerging as one of the most powerful growth drivers.
Let’s explore why live shopping has become so influential in Indonesia and how brands can position themselves to take advantage of this fast-moving trend.
Why Indonesia Is an E-Commerce Powerhouse
Indonesia’s scale and connectivity make it one of the most attractive markets for consumer brands in Asia. As the fourth most populous nation in the world, the country boasts more than 230 million internet users, many of whom are active across multiple digital platforms. With 17,000 islands and hundreds of local languages, online shopping offers a practical solution to bridge geographic and logistical barriers.
Nearly two-thirds of consumer spending now occurs online, just slightly below China’s level. According to Rakuten Insight (2023), 69% of Indonesian shoppers engage in live shopping. Among them, 37% shop weekly, 36% several times a week and 10% almost daily. Online shopping has evolved from a convenience into an ingrained lifestyle.
As Ipsos Indonesia Country Manager Soeprapto Tan notes, livestreaming “adds more value to the relationship between brands and consumers” by providing direct interaction and immediacy that static product listings cannot match.
From TikTok Shop to a Broader Live-Commerce Ecosystem
The closure of TikTok Shop marked a turning point but not a slowdown. The Indonesian government introduced regulations separating social media and e-commerce, aiming to protect small and medium traders, prevent algorithmic dominance, and safeguard user data. While this halted TikTok’s direct selling, livestream commerce continued to grow across other platforms.
TikTok Shop previously accounted for around 5% of Indonesia’s total e-commerce transaction value, but competitors quickly filled the gap. Shopee Live now leads the category with more than half of total live-commerce volume, while Tokopedia, Lazada, Blibli, and Bukalapak have all expanded their livestreaming capabilities.
Inspired by China’s model, live shopping merges entertainment and retail, allowing viewers to interact, ask questions, and make purchases instantly. This “shoppertainment” format resonates deeply in Indonesia’s socially connected culture. The pandemic accelerated adoption as merchants looked for new ways to reach homebound consumers. Features like limited-time offers and influencer-led showcases created urgency and excitement that kept audiences engaged, a dynamic that continues today.
Why Live Shopping Works So Well in Indonesia
The success of live commerce reflects Indonesia’s unique geography and demographics. The country’s archipelagic layout makes physical retail unevenly distributed, while its young median age and intense social-media engagement make digital interaction second nature. Live commerce bridges these gaps by offering convenience, social connection and entertainment all at once.
Three key factors drive its appeal:
- Interactivity: Shoppers engage directly with hosts, influencers and other viewers in real time.
- Trust: Seeing products demonstrated live reduces concerns about authenticity or quality.
- Entertainment: Fast-paced, personality-driven streams turn shopping into a shared social experience.
Tech in Asia reports that livestreaming can increase product-detail-page views by up to 625 times, shop visits by 262 times and daily orders by up to 100 percent. For small or regional businesses, this exposure can be transformative.
How Brands Can Benefit from Indonesia’s Live-Shopping Boom
1. Keep It Engaging
Live commerce thrives at the intersection of convenience and entertainment. Attention spans are short, so content must be dynamic, from product tutorials and Q&As to giveaways and interactive games. Variety and spontaneity help sustain viewer interest and improve algorithmic visibility.
2. Leverage User-Generated Content (UGC)
Indonesian consumers value peer recommendations. Encouraging user reviews or co-created content enhances credibility. Hypefactory notes that UGC strengthens trust, amplifies brand advocacy and often comes at minimal cost.
3. Choose Influencers Wisely
With 92% of consumers more likely to purchase when a trusted person recommends a product (Nielsen), working with the right local influencers is critical. Both macro and micro creators who speak Bahasa Indonesia and reflect local culture can connect authentically and drive conversions.
4. Build Trust and Operate Responsibly
Compliance, transparency and consistent product quality underpin sustainable success. Indonesian consumers are alert to issues of authenticity, while regulators continue tightening oversight. Beyond compliance, social responsibility also matters: themes such as gender equality and environmental sustainability increasingly influence purchasing behaviour.
5. Innovate with Tech and Consistency
High-quality visuals, clear storytelling and a consistent brand voice across platforms reinforce consumer confidence. Many brands are exploring tools such as geofencing, used by Grab, Pizza Hut and Gojek, to trigger localised promotions. Others are testing augmented reality (AR) features – a creative edge that early adopters like L’Oréal and Toyota have already embraced.
The Key to Success: Blending Creativity, Compliance and Connection
Indonesia’s live-shopping boom reflects a broader shift in how its young, connected consumers discover and buy products. The closure of TikTok Shop was a regulatory adjustment, not the end of the trend. Live commerce continues to grow because it meets the core needs of Indonesia’s shoppers: connection, convenience, and community.
For brands, this is an opportunity to combine entertainment with commerce, strengthen consumer trust, and expand reach across one of the world’s most dynamic digital markets.
If Indonesia is part of your international growth plan, now is the time to refine your live-commerce strategy. Book a discovery call here to explore how your FMCG brand can adapt to this exciting new era of digital retail.
