Interview: Kusumo Martanto, CEO and co-founder, Blibli
What is your assessment of the current status of Indonesia’s digital economy?
KUSUMO MARTANTO: The digital economy of Indonesia is flourishing and stands out on a global scale, buoyed by its stable and optimistic economic trajectory, as forecast by the World Bank, with predictions of sustained growth extending through 2026. The country has taken a proactive stance towards the digital economy, exemplified by its leadership in initiating the Digital Economy Framework Agreement at the ASEAN level.
With Indonesia commanding a 40% share of the ASEAN digital market, the country’s distinct socio-economic and geographic features have catalysed the creation of innovative digital solutions distinct from those observed in other regions. The logistical complexities of catering to an archipelago comprising over 17,000 islands serve as both a significant opportunity and a challenge. Success in the digital domain, particularly for those delivering physical goods, hinges on robust logistics capabilities. Moreover, integrating automation and artificial intelligence (AI) into operational processes represents a leap in efficiency and innovation, though it demands meticulous planning and implementation.
Where have you noticed changes in the adoption and utilisation of digital services among consumers?
MARTANTO: In the wake of the Covid-19 pandemic, there has been a significant transformation in consumer expectations, particularly towards integrating online and offline retail. We have responded to these evolving demands by introducing services that allow consumers to purchase online and collect in-store, a model that was introduced in 2018.
The Indonesian consumer base is characterised by its highly social nature, prompting a swift adoption of technologies that facilitate online interactions while valuing real-world social connections. There is also a discernible increase in consumers’ comfort level with online grocery shopping, particularly for non-perishable and frozen items. In consumer electronics, a preference has emerged for initiating and concluding shopping experiences across various channels. When considering high-value items, consumers prefer physically examining products yet remain receptive to finalising purchases online. This trend underscores the need for expertise and significant investment to create comprehensive shopping experiences.
To what extent do you anticipate the e-commerce environment evolving in the coming years?
MARTANTO: As the purchasing power of local consumers increases, there is a noticeable shift in their purchasing preferences, with an emphasis on quality over price considerations. This evolution marks a significant turning point, especially in emerging markets where price traditionally dominated purchasing decisions.
The transformation of the business landscape towards prioritising value and quality presents substantial opportunities for entities adept at navigating these changes. In digital commerce, success increasingly depends on an enterprise’s ability to demonstrate the value and quality of its offerings in a manner that resonates with the specific needs of consumers. For instance, the application of augmented reality technology can revolutionise the shopping experience by allowing customers to visualise how furniture items appear in their living spaces, thereby facilitating more informed purchasing decisions.
AI is another technological frontier viewed as integral to business innovation, operational efficiency and service quality enhancement. Before adopting AI, a transformation of systems, methodologies and human capital is required to ensure all stakeholders are prepared for and understand the technology’s implications. The implementation of emerging technologies necessitates a thorough overhaul of these dimensions to foster a sustainable omnichannel customer experience, bridging the online and offline realms more effectively.
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