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Out of a population of over 250m people, some 72.7m Indonesians are active on the internet, while 64m are active users of social media via mobile devices. Indeed, with a cellular penetration rate of 121%, nearly everyone on the archipelago has a mobile phone, or even two, and as incomes rise, telecoms companies roll out 4G networks and the price of smartphones fall, more Indonesians are switching to this type of device.
The traditional travel industry, with its substantial network of physical shops and agents, has long-dominated the country’s tourism business. An estimated 90% of all travel business in Indonesia was done offline as recently as 2013, according to online travel consultancy Web in Travel. Now, however, online innovations are disrupting the status quo. The rapid growth of low-cost carriers in the country, which usually sell their tickets online, has helped build trust in e-commerce among the population, despite the fact that online transactions in Indonesia are 12 times more likely to be fraudulent than the global average, according to “e-conomy SEA”. This has led to strong competition in the broader travel market between Google and other international companies, such as Uber, Agoda and Expedia, with a host of local rivals, from start-ups to more established brands.
