The Minister Of Trade Calls That Indonesia's Online Sales Trend Increases During The COVID-19 Pandemic

The Minister of Trade Agus Suparmanto (Twitter @TheMendag)

JAKARTA - The corona virus pandemic or COVID-19, which has continued to increase in positive cases, requires people to stay at home. Due to the limitations of this movement, people choose to shop for necessities through e-commerce. Thus, online sales increase.

Minister of Trade Agus Suparmanto said that the increase in online sales transactions in Indonesia had occurred since 2019 with a value of 21 billion United States (US) dollars. According to him, this is an opportunity that must be taken advantage of.

"This is one of the opportunities. With this increase, our economy will indeed improve several programs that prioritize domestic products. Working together is the key and caring," he said, in a virtual discussion, Thursday, May 21.

According to Agus, the Ministry of Trade also has a business partnership program for the development of micro, small and medium enterprises (UMKM). One of them is by increasing market access for business actors through trade forums and local trade missions.

Agus assessed, with the various kinds of cultures that exist in Indonesia, one of which is food products, which can be used as an export commodity. Moreover, if you remember there are millions of Indonesian citizens scattered throughout the world.

"The Ministry of Trade has a mission to export abroad. Why? Apart from that, there are a lot of potentials. About 5 million Indonesians live abroad, there is even the potential for e-commerce sales to go abroad," he said.

Furthermore, Agus said, Indonesian citizens who live in various countries will definitely experience homesickness or longing for their homes and homeland. Including processed Indonesian food products.

"At least in a year he will miss made Indonesian products. Annual traditions every year, for example, Eid or other things. This they will miss Indonesian products, especially for example food, he is also not easy to find abroad. opportunities, "he said.

Need Internet Facilities

Manager of Public Policy and Government Relations of the Indonesian E-commerce Association (IdEA), Rofi Uddarojat said, the opportunity to make Indonesian products known to foreign countries by utilizing technological advances such as e-commerce, will not be achieved if there is no support from adequate infrastructure facilities from the government.

"If we think digital, of course there must be infrastructure, in this case the internet. In remote areas we hope too," he said.

Rofi explained that the internet is supporting MSMEs to be able to sell online and market their products. Therefore, evenly distributed internet access in all regions in Indonesia is needed. Because, currently there are still disparities between regions regarding the internet.

"If we talk about Java there will be no problems for infrastructure and logistics. But when talking outside Java, such as Kalimantan, Sulawesi and Papua we are logistically still very expensive," he explained.

#PasarRakyat must continue to operate to maintain inflation by maintaining the availability and stability of #bapok prices for the community. This was conveyed by Trade Minister Agus Suparmanto at the Press Conference "Market Preparation Towards Lebaran" in Jakarta, Thursday (14 May). pic.twitter.com/jWHjZ0mAHP

- Ministry of Trade (MoT) May 14, 2020

Community Behavior Begins to Change

Lazada Indonesia's Chief Marketing Officer, Monika Rudijono, admitted that there was an increase in sales on the Lazada platform starting at the end of March. This is supported by government policies to stay at home and social distancing.

Furthermore, Monika said, in several countries that have not implemented lockdowns now, however, consumer behavior in these countries has actually changed. This is also what might happen in Indonesia.

"So they prefer to go to retail stores. Now they shop online because they enjoy the practicalities of shopping online and they also have real fears," he said.

Monika explained that the current increase in online sales is a form of the changing behavior patterns of the Indonesian people. As in other countries. Apart from having to comply with government recommendations not to leave the house, people have started to feel comfortable with the ease of shopping online.

"This change will be a new normal. But not all are in an online capacity. Because children will return to school, people will also return to work and so on. But the online shopping pattern we see can indeed be something new for society. Indonesia, "he said.