Retail in Indonesia Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The report covers Top Retail Companies in Indonesia and is segmented by Products (Food and Beverages, Personal and Household Care, Apparel, Footwear, and Accessories, Furniture, Toys, and Hobby, Electronic and Household Appliances, and Other Products) and Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, and Department Stores, Specialty Stores, Online, and Other Distribution Channels).

Retail in Indonesia Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Retail in Indonesia Market Size

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Indonesia Retail Sector Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Historical Data Period 2019 - 2023
CAGR 5.00 %

Major Players

Indonesia Retail Sector Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Indonesia Retail Sector Market with other markets in Retail Industry

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Retail in Indonesia Market Analysis

The Indonesia Retail Sector Market is expected to register a CAGR of 5% during the forecast period.

Indonesia's retail landscape is experiencing significant transformation driven by technological advancements and changing consumer preferences. The electronics industry has emerged as a key growth driver, recording consistent expansion with a notable 13.68% growth in Q3 2023, positioning it as the fourth-largest contributor to the manufacturing sector at 8.3%. This robust performance has attracted both domestic and international players, leading to increased investments in local manufacturing capabilities and technological innovation. The government's commitment to fostering industrial growth has resulted in supportive policies and initiatives, particularly in promoting digital transformation across retail operations.


The food and beverage sector continues to be a cornerstone of Indonesia's retail market, demonstrating remarkable resilience with a 4.90% growth in 2022, reaching IDR 813.062 billion. The sector's evolution is characterized by the increasing prominence of in-store bakeshops within supermarkets and hypermarkets, offering diverse product ranges from doughnuts to pastries. Modern retail formats are adapting to changing consumer preferences by incorporating more specialized food sections and expanding their fresh food offerings, particularly in urban areas where demand for premium and imported products is rising.


Infrastructure development and supply chain modernization are reshaping the retail landscape, exemplified by significant investments in manufacturing facilities. A notable example is Sharp's new air conditioning factory in Karawang, opened in August 2023, with an annual production capacity of 1.2 million units. This development is part of a broader trend of manufacturers establishing local production facilities to better serve the domestic market and reduce dependency on imports. The retail sector is also witnessing a surge in modern retail store formats, with retailers like ACE Hardware introducing innovative store concepts in mid-2023 that focus on enhanced customer experience and digital integration.


The import sector plays a crucial role in meeting domestic demand, with consumer goods imports growing by 21% to reach USD 9.2 billion in 2022, primarily driven by increased demand for dairy products and beef. This trend reflects the growing sophistication of Indonesian consumers and their increasing preference for diverse product offerings. Retailers are responding by expanding their product ranges and implementing omnichannel strategies to provide seamless shopping experiences. The sector is also witnessing significant developments in sustainable retail practices, with major retailers incorporating eco-friendly initiatives and digital payment solutions to align with evolving consumer preferences and environmental concerns.

Segment Analysis: By Product

Food and Beverage and Tobacco Products Segment in Indonesia Retail Market

The Food and Beverage and Tobacco Products segment maintains its dominant position in Indonesia's retail market, commanding approximately 56% market share in 2024. This segment's strength is driven by Indonesia's large population of 275.7 million people and their increasing per capita spending on food and beverages. The sector has shown remarkable resilience, with the food and beverage industry contributing significantly to Indonesia's economic growth. The government's active promotion of Industry 4.0 practices in the F&B sector has further strengthened its market position. The Ministry of Industry has trained hundreds of professionals and companies in enhancing their competencies, with a goal of equipping at least 80 F&B operators with competence certificates for Industry 4.0 transition.

Market Analysis of Indonesia Retail Sector Market: Chart for By Product

Apparel, Footwear, and Accessories Segment in Indonesia Retail Market

The Apparel, Footwear, and Accessories segment is projected to experience the highest growth rate of approximately 7% during the forecast period 2024-2029. This robust growth is primarily attributed to Indonesia's thriving textile and garment sector, which benefits from a youthful labor force and approximately 5,000 registered large and medium enterprises. The government's substantial investment of over USD 658 million in the textile and garment sector has catalyzed growth through innovative production, modernized machinery, automation, and digital printing initiatives. The sector's expansion is further supported by Indonesia's strategic position as a major cotton producer, ensuring reliable supply chains and easy access to various raw materials, including wool, silk, and synthetic fibers. The rise of fashion retail and luxury retail segments is also contributing to this growth.

Remaining Segments in Indonesia Retail Market Product Segmentation

The other segments in Indonesia's retail market include Personal and Household Care, Furniture, Toys, and Hobby, Industrial and Automotive, Electronic and Household Appliances, and Other Products, each serving distinct consumer needs. The Electronic and Household Appliances segment has emerged as a significant contributor, particularly with the growing adoption of smart home technologies. The Personal and Household Care segment has gained prominence with increasing consumer focus on health and wellness products, especially halal-certified items. The Furniture, Toys, and Hobby segment benefits from Indonesia's growing middle class, while the Industrial and Automotive segment is driven by the country's robust automotive manufacturing sector. These segments collectively contribute to the market's diversity and comprehensive retail ecosystem.

Segment Analysis: By Distribution Channel

Online/E-Commerce Segment in Indonesia Retail Market

The online/e-commerce segment has emerged as a dominant force in Indonesia's retail landscape, commanding approximately 22% market share in 2024. This substantial presence is driven by the country's increasing smartphone penetration, rising GDP, population growth from high-income groups, and growing technological awareness. The segment's strength is particularly evident in fashion retail, electronics, and media products, with digital consumers in their twenties and thirties comprising around 88% of the total user base. Major players like Tokopedia, Shopee, and Lazada have established strong footholds in the market, while the segment's growth is further supported by the widespread adoption of digital payment solutions, with digital wallets accounting for nearly 40% of all online payments.

Online/E-Commerce Growth in Indonesia Retail Market

The online/e-commerce segment is demonstrating remarkable growth potential in the Indonesian retail market, projected to expand at approximately 7% through 2024-2029. This growth trajectory is supported by several key factors, including the increasing digitalization of Indonesia's retail landscape and the emergence of innovative business models. The segment's expansion is particularly notable in the Java region, which accounts for about 76% of buyers, followed by Sumatra at 14% and Sulawesi at 4%. The growth is further accelerated by the rising adoption of mobile shopping, with almost all consumers having access to online shopping via smartphones, and the increasing integration of various payment methods, including digital wallets, account-to-account transfers, and buy-now-pay-later options.

Remaining Segments in Distribution Channel

The Indonesian retail market encompasses several other significant distribution channels, each serving distinct consumer needs. Fresh food markets remain crucial for daily grocery needs, while convenience retail stores and minimarkets cater to urban consumers seeking quick, accessible shopping options. Supermarkets and hypermarkets continue to serve as one-stop shopping destinations, offering extensive product ranges and modern shopping experiences. Traditional retail channels, including specialty stores and local markets, maintain their relevance by providing personalized service and community-focused shopping experiences. These diverse channels collectively create a robust retail ecosystem that accommodates various consumer preferences and shopping behaviors across Indonesia's geographical spread.

Retail in Indonesia Industry Overview

Top Companies in Indonesia Retail Market

The Indonesian retail market features prominent players like Alfamart, Indomaret, PT Matahari Putra Prima, PT Mitra Adiperkasa, Ramayana Lestari Sentosa, Hero Group, and Erajaya Group leading the sector. These companies are actively pursuing digital transformation initiatives, with many implementing omnichannel retail strategies to enhance customer experience and operational efficiency. Product innovation is particularly evident in the food and beverage segment, where companies are introducing healthier options and expanding their private label offerings to meet evolving consumer preferences. Operational agility is demonstrated through the adoption of advanced inventory management systems, data analytics for customer insights, and streamlined supply chain processes. Strategic expansion moves include both physical retail store network growth in tier-2 and tier-3 cities, as well as significant investments in e-commerce capabilities and digital payment solutions to capture the growing online retail segment.

Local Players Dominate Fragmented Retail Landscape

The Indonesian retail market exhibits a highly fragmented structure characterized by strong local player dominance, particularly in the traditional retail and convenience store segments. Major domestic retail groups have established deep-rooted distribution networks and strong brand recognition, while international retailers primarily operate in specific segments such as luxury retail and specialty stores. The market has witnessed the emergence of retail conglomerates that operate across multiple formats, from hypermarkets to convenience stores, allowing them to cater to diverse consumer segments and geographical locations.


Recent market dynamics show increasing consolidation through strategic partnerships and joint ventures, particularly in the e-commerce and digital retail space. Traditional retailers are forming alliances with technology companies to enhance their digital capabilities, while larger retail groups are acquiring smaller regional players to expand their market presence. The market also sees active participation from diversified business groups that leverage their existing infrastructure and customer base to expand their retail operations, creating a complex competitive environment where success depends on both scale and specialization.

Innovation and Digital Integration Drive Growth

For established players to maintain and increase their market share, the focus needs to be on developing integrated retail ecosystems that combine physical retail and digital channels seamlessly. Success factors include investing in advanced analytics capabilities, developing private label products, and creating personalized shopping experiences through loyalty programs and targeted marketing. Companies must also strengthen their last-mile delivery infrastructure and implement sustainable practices to meet growing environmental consciousness among consumers, while maintaining cost competitiveness in an increasingly price-sensitive market.


New entrants and challenger brands can gain ground by focusing on niche markets and specialized product categories that larger players may overlook. The key lies in leveraging digital technologies to reduce operational costs and create differentiated value propositions. Regulatory considerations, particularly regarding foreign investment and e-commerce operations, continue to shape market entry strategies. The risk of substitution remains moderate, primarily mitigated through brand building and customer loyalty programs, while end-user concentration varies significantly across different retail formats and geographical locations, necessitating tailored approaches to market penetration and expansion. The retail trade sector continues to evolve, with brick and mortar retail still playing a crucial role in consumer engagement.

Retail in Indonesia Market Leaders

  1. PT Matahari Putra Prima Tbk

  2. Ramayana Lestari Sentosa

  3. Mitra Adiperkasa

  4. Alfartmart

  5. PT Trans Retail Indonesia

  6. *Disclaimer: Major Players sorted in no particular order
Indonesia Retail Sector Market Concentration.
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Retail in Indonesia Market News

In February 2021, Apparel retailer Giordano unveiled a large-scale store in the newly opened Bumi Raya City Mall in Pontianak, Indonesia.

Retail in Indonesia Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints/Challenges
  • 4.4 Value Chain/Supply Chain Analysis
  • 4.5 Porter's Five Forces Analysis
  • 4.6 Consumer Behavior Analysis
  • 4.7 Insights into Technological Innovations in the Retail Industry
  • 4.8 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

  • 5.1 By Product
    • 5.1.1 Food and Beverages
    • 5.1.2 Personal and Household Care
    • 5.1.3 Apparel, Footwear, and Accessories
    • 5.1.4 Furniture, Toys, and Hobby
    • 5.1.5 Electronic and Household Appliances
    • 5.1.6 Other Products
  • 5.2 By Distribution Channel
    • 5.2.1 Supermarkets/Hypermarkets, Convenience Stores, and Department Stores
    • 5.2.2 Specialty Stores
    • 5.2.3 Online
    • 5.2.4 Other Distribution Channels

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration Overview
  • 6.2 Company Profiles
    • 6.2.1 PT Matahari Putra Prima Tbk
    • 6.2.2 Ramayana Lestari Sentosa
    • 6.2.3 Mitra Adiperkasa
    • 6.2.4 Alfartmart
    • 6.2.5 PT Trans Retail Indonesia
    • 6.2.6 Hero Supermarket Group
    • 6.2.7 Erajaya Swasembada
    • 6.2.8 AEON Group
    • 6.2.9 Lotte Mart
    • 6.2.10 Indomarket*
  • *List Not Exhaustive

7. FUTURE OF THE INDONESIAN RETAIL SECTOR

8. DISCLAIMER

9. ABOUT US

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Retail in Indonesia Industry Segmentation

The report on the Indonesian retail sector provides a comprehensive evaluation of the market, with an analysis of the segments in the market. Moreover, the report also provides the competitive profile of the key manufacturers, along with regional analysis. The Indonesia retail industry is segmented by products (food and beverages, personal and household care, apparel, footwear, and accessories, furniture, toys, and hobby, electronic and household appliances, and other products) and distribution channel (supermarkets/hypermarkets, convenience stores, and department stores, specialty stores, online, and other distribution channels). The report offers market size and forecasts for the retail sector in Indonesia in value (USD million) for all the above segments.

By Product Food and Beverages
Personal and Household Care
Apparel, Footwear, and Accessories
Furniture, Toys, and Hobby
Electronic and Household Appliances
Other Products
By Distribution Channel Supermarkets/Hypermarkets, Convenience Stores, and Department Stores
Specialty Stores
Online
Other Distribution Channels
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Retail in Indonesia Market Research FAQs

What is the current Indonesia Retail Sector Market size?

The Indonesia Retail Sector Market is projected to register a CAGR of 5% during the forecast period (2025-2030)

Who are the key players in Indonesia Retail Sector Market?

PT Matahari Putra Prima Tbk, Ramayana Lestari Sentosa, Mitra Adiperkasa, Alfartmart and PT Trans Retail Indonesia are the major companies operating in the Indonesia Retail Sector Market.

What years does this Indonesia Retail Sector Market cover?

The report covers the Indonesia Retail Sector Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia Retail Sector Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Indonesia Retail Sector Market Research

Mordor Intelligence provides a comprehensive analysis of Indonesia's evolving retail landscape. Here, traditional retail is rapidly transforming alongside modern retail formats. Our extensive research covers the complete spectrum, from organized retail to unorganized retail. It encompasses brick and mortar retail, department store operations, supermarket chains, and hypermarket establishments. The report offers detailed insights into retail sales trends, retail trade dynamics, and the growing influence of retail technology. These factors are shaping consumer behaviors across both physical retail spaces and digital platforms.

Stakeholders across the retail commerce ecosystem benefit from our thorough analysis of omnichannel retail and multichannel retail strategies. The report examines various segments, including fashion retail, luxury retail, grocery retail, and specialty retail. It also explores the impact of mobile commerce and smart retail solutions. Our research delves into convenience retail trends, discount retail strategies, and the evolution of digital retail practices. This information is available in an easy-to-read report PDF format for download. The analysis particularly focuses on how consumer retail businesses are adapting to changing market dynamics. They are incorporating retail technology innovations and optimizing their operations across both online retail and traditional channels.

Indonesia Retail Market Report Snapshots