Social Media in Indonesia - 2023 Stats & Platform Trends

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.