Indonesia is a major player in the Southeast Asian internet market, with a population of over 276 million people and a rapidly growing economy. While only 53.7% of Indonesians have internet access, there is a strong social media user base that spends an average of 3.28 hours per day on these platforms.
The social media demographics in Indonesia are skewed towards younger users, but the growth rate of the older population (age 45 and above) has been significant in recent years. In just a three year period, the number of users in this age group has doubled. It is worth noting that this group is also expanding rapidly as the demographic age.
During the pandemic, we also see a substantial growth in social media use. This can mainly be attributed to the shutdown of numerous brick-and-mortar stores, prompting merchants to rely on digital platforms such as e-commerce, social media, and messaging apps to continue engaging with their customers; and for many, to continue engaging with their friends and families.
During this period, social media has also become increasingly central to consumers’ everyday lives in the context of almost every single area, spanning from connecting with families, getting the latest trends, and even purchasing.
Families in Indonesia typically purchase groceries frequently, visiting the pasar (wet market) or buying from fruit and vegetable vendors who routinely come to their neighborhood. Now, it has become increasingly prevalent for customers to schedule orders with their usually produce sellers for particular days using WhatsApp, with cash payments being made upon delivery at the buyer’s residence.
Not just in the grocery sector, we also see same trends emerging from almost all retail sectors. Department store operators are also transitioning to digital platforms, including online marketplaces and social media. This strategic shift, driven by the evolving consumer behaviors that have been expedited by the COVID-19 crisis, is anticipated to further contract the brick-and-mortar department store market, not just in the medium term, but also in the long run. Matahari Department Store Tbk PT, a leading player in the department store sector, is among the prominent companies concentrating on bolstering sales via online channels.
Fashion retailers are increasingly focusing on online sales, as Indonesian consumers become more acquainted with digital media. Marketing products through social media has proven to be highly effective in boosting sales. Over the forecast period, fashion trends are anticipated to shift more quickly and dynamically, fueled by the fast-paced dissemination of information online. As a result, fashion retailers must devise adaptive business strategies that are flexible and cater to local needs.
Casual fashion brands, in particular, tend to demonstrate greater adaptability and have successfully harnessed social media for customer engagement and influencer endorsements, often enabling digital sales as well. The adoption of third-party marketplaces has become an increasingly popular strategy, with numerous retailers turning to these platforms during the COVID-19 crisis. This trend is likely to persist, as consumers have grown accustomed to discovering brands and accessing products through such channels.
Social commerce has become more prominent during the COVID-19 crisis, as many people who lost their jobs, experienced temporary work suspension due to PSBB/PPKM, or faced salary cuts turned to direct selling through online platforms such as WhatsApp and Instagram as a means of earning income. As a result, there is a growing number of “small businesses” selling products online.
Throughout 2022, on average there are about 188.6 million active social media users in Indonesia on a monthly basis with an annual growth rate of 12.6 % in 2021-22 . This represents about 68.9 % of the total population. These social media users on average spend about 3.28 hours on social media and each on average have accounts on 8.5 platforms.
In Indonesia, WhatsApp is the most commonly used chat platform, followed closely by Meta. Facebook and Instagram, both owned by Meta, are used by 81-85% of the country’s internet population between the ages of 16-64. In the past four years, TikTok has experienced tremendous growth in Indonesia, with its user base increasing from 35 million to now more than 44% of the population.
In 2019, the Indonesian government temporarily blocked features like sending photos, audio, or video on social networks owned by Meta given the then riot which killed at least six people and leaving more than 200 people injured. After that, we started to see some users migrating to alternative platforms like Twitter, Signal, and especially Telegram.
Despite the temporary blockage of certain features on social networks owned by Meta in 2019, WhatsApp remained popular in Indonesia. According to a survey by GWI, it was the most popular social media platform in the country. During the pandemic, small and medium-sized enterprises (SMEs) in Indonesia turned to platforms like WhatsApp and Instagram to sell products online and generate income. Additionally, brands increasingly used these platforms to reach consumers while physical stores were closed or subject to restrictions like PSBB (large-scale social restrictions) and PPKM (restrictions on activities to prevent the spread of COVID-19).
The boom in social commerce has also compelled social media giants like Facebook to further invest (however, the plan has been facing some headwind) in the country’s commerce potential.
The online buying and selling process that previously spread through social media, such as Facebook and Instagram, has now begun to shift to e-commerce. Increased transaction security is making consumers, especially in the Millennial generation, start to consider making shopping purchases through different e-commerce platforms. Moreover, the products offered through e- commerce platforms are getting increasingly wide-ranging, with multiple brands offering different versions of a product type.
With the latest data published in January 2023, we can see that at the growth rate of 0.95%, there is now around 178.7 million Facebook users in Indonesia . With male users account for around 53.67% and female users account for around 46.33%.
With the latest data published in January 2023, we can see that at the growth rate of 1.1%, there is now around 97.17 million Instagram users in Indonesia . With male users account for around 48.55% and female users account for around 51.45%.
With the latest data published in January 2023, we can see that at the growth rate of 1.36%, there is now around 106.9 million TikTok users in Indonesia . With male users account for around 0.34 and female users account for around 0.66.
With the latest data published in January 2023, we can see that at the growth rate of 1.08x, there is now around 22.17 million LinkedIn users in Indonesia.
Our CR team is dedicated to keeping a pulse on the ever-evolving demographics and behavior of consumers globally. We stay informed on the latest trends and developments across major economies to ensure that we are providing the most up-to-date insights for our clients