China-based ecommerce company, JD.com has disclosed plans to partner with smaller e-commerce players in Indonesia, according to sources from DEALSTREETASIA.
Indonesia is fertile ground for ecommerce businesses, with a potential ecommerce market of USD 65 billion by 2020, according to Macquarie Research. This growth is also driven by the country’s legal framework, which now allows 100% foreign ownership in ecommerce companies for investments above USD 7.53 million.
JD.com, among other China-based ecommerce companies, has taken note of the ecommerce sector’s potential in Indonesia. According to inside sources, cited by DEALSTREETASIA, the company is planning to partner with several Indonesia-based online retailers as well as to invest in several ecommerce niche players.
Potential partners among the smaller ecommerce companies are Fabelio, an online furniture marketplace, and Laku6, a used phone ecommerce website.
JD.com already has a presence in the archipelago offering deliveries to all of Java through its Indonesia website. It also plans to expand to the island of Sumatra by the end of 2017 and the company is investing heavily in its delivery network. According to DEALSTREETASIA, JD.com wants to build warehouses across every key city in Indonesia.