| The ongoing series by Campaign Asia-Pacific maps Southeast Asia’s boom markets, to spotlight growth drivers, platform trends, and local consumer behaviour. |
Watching a P&G live shopping stream on TikTok where the host sings with every purchase might sound wild, but it’s typical in Indonesia. Here, social commerce goes beyond selling, it’s about entertaining and building community.
Social commerce on platforms like TikTok Shop and YouTube dominate Indonesia’s digital landscape, accounting for nearly 80% of digital transactions in 2024, with a projected gross merchandise value (GMV) of US$22 billion by 2028, making Indonesia one of the world’s fastest-growing and largest social commerce markets. About 60% of Indonesians now make purchases via live streaming platforms, with conversion rates up to three times higher than traditional ecommerce.
“Indonesia has a young, mobile-savvy population, which has adopted a mobile-first behaviour towards social media and ecommerce very comfortably,” says Anish Daryani, founder, president director and CEO, Moonfolks, and president director, Havas Moonfolks. “The internet penetration is one of the highest globally, leading to a very high usage of social media, averaging over three hours per day."
But Indonesia’s social commerce boom isn’t just about technology. It taps into deeply rooted cultural behaviours such as community-based trust, informal selling, and peer influence. It’s also fuelled by a rising digital hustle mindset, where enterprising young Indonesians see platforms like Instagram and TikTok as both entertainment and opportunity.
“In a way, social commerce digitised peer-to-peer selling culture that already existed offline in Indonesia,” says Andrea Ng, APAC insights director, Canvas8. “Platforms like YouTube Shopping, TikTok, WhatsApp have become the new digital warungs where the selling is often conversational and communal. Live selling mirrors this experientially.”
Brands like Korean beauty brand AXIS-Y clearly understand this dynamic. The brand runs multiple livestreaming sessions a day for engagement, blending entertainment with commerce so that buying and selling becomes a participatory, shared experience.
Social commerce in Indonesia has evolved organically alongside the rise of TikTok and influencer culture, with TikTok Shop alone generating over US$6 billion GMV in Indonesia.
“By the time TikTok Shop launched here, Indonesians were already using platforms like Instagram and Facebook to build online reputations and attract customers,” says Indra Permadi, head of strategy, Good People Network. “TikTok Shop streamlined this process, offering a more integrated experience that allowed brands to connect and transact more effortlessly with their audiences.”
Several notable local brands have emerged by capitalising on shifting consumer behaviour, especially in beauty and fashion, to disrupt the market and challenge established players. Their success is driven by a social-first strategy, marked by authentic engagement on social media, strategic influencer collaborations, and smart use of affiliate marketing across social commerce and ecommerce platforms. The most successful Indonesian brands like Skintific and Scarlett are performance-driven and agile, leveraging creators not just for sales, but also for long-term brand equity. Social remains their main platform, while traditional media is used to amplify social.
Focus on building relationships over transactions
Community is everything in Indonesia’s digital landscape. Brands like Mad for Makeup have built vibrant, engaged communities, such as their Rebel Secret Society, which empower fans to become both advocates and affiliates. This community-driven approach gained rapid momentum during the pandemic, showing how organic, grassroots growth can create passionate brand champions and lasting success.
“The key advice for new entrants is to prioritise collaboration with credible local creators and invest in larger-than-life community building,” says Ng. “Adaptability and authenticity aren’t just advantages or buzz words. They are essential for scaling and standing out.”
Content that reflects Indonesian values like family, community, and authenticity resonates deeply.
“Focus on building relationships over transactions,” says Lisa Putri, head of content, Ogilvy Indonesia. “Hyper-localised storytelling, partnerships with micro-influencers who command niche audiences, and conversational commerce through messaging apps can foster trust and seamless interaction. Growth comes from agility and personalisation."
Working closely with local creators can make a significant difference. According to WPP Media, Indonesia boasts the most dynamic and diverse creator economy in Southeast Asia, with around 12 million creator inventories, the largest in the region.
“Creators bring an authentic, engaging voice and a deep understanding of what resonates with their audiences,” says Putri. “In a crowded market, it’s not just the message that matters, but how it’s delivered. Brands that stand out through tone and creative execution are far more likely to build lasting engagement and cultural relevance.”
A common mistake for brands entering Indonesia’s social commerce market is focusing only on the lower funnel and running siloed, conversion-driven campaigns.
“This leads to low efficiencies and higher conversion costs,” says Daryani. “Adopt a full-funnel approach, enhance the discoverability of your brand, build a strong social media presence and engage meaningfully with your audience. Don’t treat them like ‘leads’. Embrace them for the community that they are.”
Indonesian consumers are highly social, valuing peer recommendations and authenticity. It’s not about the most famous influencers, but the most relevant voices.
“Social commerce in Indonesia isn’t a transaction, it’s a conversation,” says Lenny Chan, managing director, Redcomm Indonesia. “If you can connect with how Indonesians express themselves, you’re not just driving sales, but you’re also building brand love.”
A standout tactic is the use of local slang and humour, making content culturally relevant and highly shareable.
“Whether it’s a local slang meme or a ‘JakSel’ (Jakarta Selatan) aesthetic, content needs to feel like it’s ‘from them, for them’,” says Angga Prabowo, associate strategy director at BBDO Indonesia. “They prefer behind-the-scenes, lo-fi, or unfiltered content that feels genuine, particularly if it reflects local realities, humour, and self-expression.”
User-generated content (UGC) also plays a key role in amplifying authenticity and building deeper community engagement. Among Indonesian Gen Z consumers, there’s a clear preference for content that feels spontaneous and genuine.
“Polished, scripted messaging tends to fall flat compared to real, unscripted moments, especially in livestreams or interactive formats,” says Jeremy Webb, head of social content, Ogilvy APAC. “For this audience, it’s not just about purchasing a product, but connecting with a brand’s personality.”
Ultimately, people are looking for shoppertainment delivered in innovative ways. “Don’t over-do it though,” says Daryani. “Be real and spontaneous. Stick to the core values of your brand, communicate the product benefits clearly, using simple language and engaging demos.”
Navigating regulatory changes
In 2023, Indonesia’s Ministry of Trade introduced new restrictions and compliance requirements aimed at protecting local small and medium businesses and ensuring fair competition. Among these was a ban on direct transactions and payments on social-media platforms.
This was a major blow to platforms like Temu and TikTok Shop, which subsequently faced bans in the country. Yet TikTok was able to circumvent the ban by buying a majority stake in home-grown Indonesian ecommerce platform Tokopedia.
“The regulations are straight forward,” Daryani explains. “If a business has a social media license, and no ecommerce license, then it can’t sell. So platforms are evolving innovatively around these regulations. TikTok acquired significant stake in Tokopedia. YouTube has collaborated with Shopee (now a Shopee cart appears around some YouTube videos). So the way around is to partner and collaborate. Or brands can draw out clear consumer journeys, where they use social media for discovery and engagement, but then drive their traffic to their brand.com or e-commerce platforms.”
These shifts have pushed brands and agencies to rethink where and how commerce happens. Instead of relying solely on seamless in-app checkout, marketers are now focusing on creating stronger content-to-commerce funnels, such as driving discovery on platforms like TikTok or Instagram, then converting through ecommerce partners that comply with local regulations. One opportunity that stands out is to collaborate with platforms and marketplaces that champion local MSMEs. These platforms offer more than just compliance, they align with public sentiment and the government’s push for economic inclusion.
“For many Indonesian consumers, value-for-money and supporting local sellers are top priorities, especially post-pandemic and during economic uncertainty,” says Prabowo. “To adapt and grow, brands must design collaboration contents that live across compliant platforms, invest in community-driven commerce, and treat regulation not as a barrier, but a catalyst for building more sustainable, inclusive ecosystems.”
The frictionless future: Near-term gamechangers
As Indonesia’s social commerce market grows, several technology trends are quickly moving from nice-to-haves to essential building blocks for success. The most forward-thinking brands are not just adopting new tools but orchestrating them to match the changing behaviours and expectations of Indonesian consumers.
“Personalisation empowered by AI is a clear foundation for growth,” says Canvas8’s Ng. “Sociolla has transformed online beauty shopping with its SOCO platform since 2018, using AI to serve up tailored product recommendations. This creates a sense of intimacy and relevance for each shopper that is now already expected in the market. But personalisation is also about dynamic content delivery, and an active-identity-oriented engagement. Wardah continues to innovate their use of AI and AR, from personal skin recommendation robots empowered by AI to virtual makeup try-ons. The brand understands the importance of innovation and letting consumers experiment and engage with products in a way that feels both futuristic, familiar and personal.”
The next frontier will be smart, integrated ecosystems. Shopee’s collaboration with OpenAI to launch an AI shopping assistant points to a future where discovery, advice, and purchase are seamlessly woven together.
“Creating frictionless experiences that mirror how Indonesians like to shop, browse, chat, engage in real life,” adds Ng. “The core values that matter here is an experience that is intuitive, personalised and responsive.”
Meanwhile, seamless payment options and buy-now-pay-later (BNPL) services are removing friction from the purchase journey. The uptake of payment technologies like QRIS and e-wallets, and their adoption by key platforms like Shopee and Tokopedia, is all about making transactions not just faster, but smoother than ever.
While several technological trends, such as live shopping, seamless payment solutions, and AI-driven personalisation, are contributing to the growth of social commerce in Indonesia, live shopping stands out as the most critical for scaling success in this market.
“Indonesian consumers are highly price-sensitive and deeply motivated by discounts, often requesting live sessions from sellers purely to access exclusive offers or additional price cuts,” says Nadya Ardianti, managing director, Kantar Insights Indonesia. “This behaviour underscores the cultural appeal of interactivity combined with value-driven incentives.”
While AI-driven personalisation is gaining ground globally, in Indonesia it’s still in its early phases within social commerce. Most platforms haven’t yet offered AI tools that help users find the right product based on behaviour or context. That said, the demand for smart recommendation engines, auto-reply bots, and personalised live-chat is rising, especially for MSMEs managing high chat volumes during live selling.
BBDO Indonesia’s Prabowo predicts that seamless payments, hyper-integrated live shopping, and social CRM tools will be the biggest near-term game changers: “Indonesians want shopping experiences that feel personal and practical. That’s why platforms that enable real-time interaction, instant checkout, and flexible payment options like COD, e-wallets, and PayLater are scaling fastest.”
