Inside Indonesia’s US$22 billion social commerce future: live shopping, influencer trust, and TikTok Shop

Social commerce isn’t just a buzzword in Indonesia anymore — it’s a dominant force changing how people discover and buy products online. The market is projected to reach a staggering US$22.8 billion in gross merchandise value by 2028¹, transforming the country into a regional powerhouse for video-first retail.

This article explores how Indonesia’s unique blend of community-first culture, mobile-driven habits, and shoppertainment obsession is turning social commerce into the primary channel for digital retail — and what that means for marketers looking to tap into Southeast Asia’s most engaged market.

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Here’s a table of contents for quick access:

• Social commerce goes mainstream in Indonesia
• The rise of shoppertainment and live shopping
• TikTok Shop becomes the retail core
• What marketers should know

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Social commerce goes mainstream in Indonesia

Once seen as a niche channel, social commerce now drives nearly 80% of all digital transactions in Indonesia, according to a PayPal survey in 2017².

What’s fueling this shift? A convergence of factors — personalized recommendations, real-time engagement, and the ability to shop directly within the apps people already use to socialize.

Indonesian consumers are looking for more than just products. As Arfitrianto Zulnaini, Country Head at IAS explains in an interview with MARKETING-INTERACTIVE³, "Indonesian shoppers prefer social commerce over traditional eCommerce due to factors such as personalised recommendations, real-time engagement and an integrated browsing-to-buying experience,"

For them, shopping is no longer a task — it’s part of their entertainment cycle.

Vitya Vijayan from M&C Saatchi Performance summed it up by adding, "Well, shopping is no longer just about finding the best price or product; it has become an entertainment,"

The rise of shoppertainment and live shopping

A defining trend is the rise of “shoppertainment” — the fusion of content, community, and commerce. Live streams, short videos, and influencer demos dominate the digital storefront, creating high-engagement moments that drive spontaneous purchases.

In fact, six in ten Indonesians made purchases through live shopping platforms in 2024⁴, and 83% have participated in online live shopping⁵, according to the latest data.

Why does this format work so well in Indonesia? Trust. Real-time demonstrations and influencer endorsements build credibility in a market where word-of-mouth and peer validation are everything.

"Live shopping is now a staple in social commerce. Conversion rates are up to three times greater on live-streaming platforms compared to traditional eCommerce." said Vijayan.

TikTok Shop becomes the retail core

Indonesia is now TikTok Shop’s largest market in Southeast Asia, with more than 125 million total TikTok users nationwide⁶. That reach — coupled with its 2023 merger with Tokopedia — has given the platform an ecosystem advantage few others can match.

For small businesses and influencers alike, TikTok Shop has become a gateway to customers who prefer to browse, discover, and buy all in one place. Add in flash deals and smart pricing, and the result is a frictionless sales funnel that encourages impulse buying.

What’s really fueling growth is video-first commerce.

Over 40% of online shoppers in Southeast Asia now rely on video content to inform purchases⁷, with eCommerce growth surging 15% year-on-year⁸ thanks in large part to this trend.

What marketers should know

Here’s how to think strategically if you’re looking to crack Indonesia’s US$22B social commerce scene:

1. Prioritize video-first content

TikTok’s success proves that short-form, engaging video content is where product discovery starts. Lean into formats like livestreams, influencer takeovers, and UGC-style clips.

2. Invest in authentic influencer partnerships

Consumers trust creators more than brand ads. Influencers who provide demos, answer questions in real time, and build rapport with their followers are key to converting intent into purchases.

3. Tailor experiences for seamless conversion

Social commerce in Indonesia is fluid — product pages, chat support, and checkout all happen in one place. Optimize for that seamless journey. Features like “buy now, pay later” and in-app support are no longer add-ons — they’re expectations.

4. Rethink your platform strategy

Platforms like Shopee and Lazada still matter, but social platforms — especially TikTok — are now where most users start their buying journey. Marketers should adjust media mix and content calendars accordingly.

5. Test, measure, adapt

With engagement rates on short-form videos hitting 45.8%⁹, it's clear the opportunity is real. But the space is still evolving. Smart marketers will continuously experiment with formats and track performance across creator campaigns, shoppable videos, and conversion metrics.

Indonesia’s social commerce boom isn’t a side hustle — it’s the main game. For marketers eyeing Southeast Asia, tapping into this US$22 billion opportunity means rethinking how your brand shows up in video, who speaks for you, and how seamless your buying experience really is.

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