E-commerce giant Amazon is reportedly entering the Indonesian market after its expansion in Singapore last yr. The company is now specializing in the Southeast Asian market to extend the brand’s presence within the Asia-Pacific region, Komal Nathani With Entrepreneur wrote the web portal.
The company has been in talks with the Indonesian government for about two years concerning the terms of the planned investment, including tax regulations and others. These talks have finally entered the implementation phase.
In an interview with Indonesian online research firm KataData, Finance Minister Sri Mulyani Indrawati says: “I’m currently in talks with Amazon, which is planning to enter the Indonesian market. I’ll make certain that they comply with the regulations in our country, especially in terms of willingness to pay taxes.”
Will it’s Amazon vs Alibaba?
Bezos’ company will face competition from Chinese giant Alibaba and Bhinnek in Indonesia. A 2016 report by Kompass.com said the worldwide e-commerce giant would usher in a staggering $600 million investment in its first yr of operations in Indonesia. On the opposite hand, its global rival Alibaba has already made its presence felt within the Indonesian market, leading a $1.1 billion funding round for e-commerce unicorn Tokopedia.
While the Indonesian e-commerce market has energetic players who’re betting big on it, the entry of worldwide e-commerce company Amazon into Indonesia is prone to disrupt the e-commerce landscape within the country, as each global rivals try to capture the Asia-Pacific market.
Amazon currently dominates the UK and North American markets, while Alibaba dominates China and has established a network of strategic partnerships and investments in other Southeast Asian regions, including Australia, Singapore, India and Indonesia. Both corporations are making big bets in India and moving to Australia, making the most of three trends – the digitisation of worldwide financial systems, the expansion of wealth around the globe and increased web penetration.
Both global corporations are actively exploring the Asia-Pacific market, aiming to capitalize on opportunities. In the Indonesian market, Amazon can be up against Alibaba-owned Lazada and Tokopedia.
In the race to take over the e-commerce market, how Indonesia will embrace this global giant stays an open query for market holders.
