Retail plays a crucial role in Indonesia’s economy. The country’s large population creates strong demand for consumer goods, which is met by both major and smaller local retail companies. This contributes to steady consumption growth and strengthens the domestic market. Indonesia’s promising retail sector is also drawing the attention of foreign companies. Anyone can carve out a niche in this market — the key is to understand the specifics of retail in Indonesia, consumer preferences, and available sales channels. In this article, we’ll provide a brief overview of both offline and online retail in Indonesia — useful for anyone looking to supply products to this country.
Modern retail in Indonesia comes in several familiar formats: mini markets, supermarkets, hypermarkets, and traditional markets. According to the U.S. Department of Agriculture (USDA), the leading players in the offline sector are:
1. Indomaret
Indomaret leads the market by number of outlets, operating around 20,000 stores. In 2022, its total sales reached $7.6 billion. In addition to its core format, the company also runs the Indogrosir wholesale chain, targeting small and medium-sized businesses.
2. Alfamart
As of 2022, Alfamart operated over 17,800 stores with total sales also reaching $7.6 billion. The chain continues to expand beyond Java, opening stores in less developed regions like Kalimantan and Papua.
3. Alfamidi
This retailer holds a solid position among Indonesia’s top retail chains. In 2022, its sales reached $1.1 billion with a network of around 2,200 stores.
4. Hypermart and Super Indo
Both chains have similar sales and store counts. Hypermart has over 103 locations with $445 million in revenue, while Super Indo operates 189 stores and reported $383 million in sales.
5. Transmart Carrefour
Despite reducing its store count due to increasing competition, Transmart remains a significant player. As of 2022, the chain had around 63 outlets with $318 million in total sales.
Indonesian retail chains offer a wide range of products, but several categories dominate in terms of sales:
Food and beverages — these make up over 70% of store assortments.
Cosmetics and personal care products — account for about 15% of sales in large chains like Alfamart and Indomaret. Local brands and international premium products are especially popular.
Household goods and cleaning products — kitchenware, cleaning supplies, and similar items make up roughly 10% of store assortments.
Electronics and accessories — represent around 5% of the product mix in larger stores.
Some of these categories are equally popular in online retail.
Online retail has seen rapid growth in many countries, and Indonesia is no exception. Indonesians actively shop on digital marketplaces. Some of the most prominent platforms include:
Tokopedia, Shopee, and Bukalapak — major marketplaces with thousands of sellers and a wide range of goods.
Lazada — a platform owned by Alibaba, known for its extensive logistics network and customer-friendly delivery services.
Blibli — focuses on high-quality brands and products.
HappyFresh — specializes in delivering groceries from supermarkets.
Online platforms offer a wider variety of products than any offline store — one reason why they’re so popular. Based on the most recent data from 2022, the leading categories are:
1. Fashion and clothing
Roughly 20% of online sales. Local brands and handmade items are particularly popular.
2. Electronics and gadgets
Up to 25% of sales, including smartphones, accessories, and home appliances.
3. Food and beverages
Around 15% of sales. Organic goods and long-shelf-life items are in high demand.
4. Cosmetics and health products
Make up about 10% of sales, reflecting growing interest in natural and organic items.
5. Children’s goods and toys
Roughly 8% of sales, fueled by the growing number of young families.
Despite the rise of supermarkets and e-commerce, traditional markets — such as bakeries, corner shops, and street markets — still account for about 77% of the retail sector. Indonesians often prefer to buy fresh produce like vegetables, fruit, and meat, as well as daily essentials, from these outlets due to their convenience and lower prices.
For those looking to start a business in Indonesia, it’s important to understand several local specifics:
✓ Indonesia has the world’s largest Muslim population, which drives strong demand for halal-certified products. When selling food, cosmetics, or clothing, make sure to account for halal certification.
✓ Products should be adapted to local tastes, especially food items.
✓ Indonesia’s geography (over 17,000 islands) presents logistical challenges. If you're opening a business in Bali, choose partners with regional expertise and account for seasonal shipping factors.
✓ BPOM certification is mandatory for food, cosmetics, and several other categories. You can learn more about product certification in this article.
Retail in Indonesia has immense growth potential. If you’re ready to enter this dynamic market and start a business in Indonesia, our consulting company, Good Luck Group, is here to support your foreign business and help you launch smoothly. Contact us to learn more!
