North Sumatra, 22 June 2023 - According to the e-Conomy SEA 2022 report, the digital sector in Indonesia is projected to keep growing and become the primary platform for the public to fulfill their needs by 2023. Approximately 80% of digital consumers in Indonesia are expected to maintain or increase their use of digital services in 2023.
Head of Corporate Affairs Tokopedia, Ekhel Chandra Wijaya, said, "In line with the report, we also see positive growth in online transactions in various regions in Indonesia, such as North Sumatra, including Medan and nearby areas. South Nias, Gunungsitoli, Toba Samosir, Padang Lawas, and Deli Serdang are regions that have seen the highest increase in North Sumatra through Tokopedia transactions in May 2023 compared to the monthly average from January to April 2023.”
On the other hand, from January to May 2023, Tokopedia saw an increase in inter-island shipments, with the farthest shipment happening from Medan (North Sumatra) to Merauke (Papua). In addition to helping people meet their physical product needs, Tokopedia makes it easier for people to access digital products.
"In the first quarter of 2023 compared to the first quarter of 2022, E-Samsat, State Revenue (Online Tax, Customs, and State Securities), and Train Tickets are the digital products most purchased in North Sumatra, including Medan and its surroundings. E-Samsat transactions in North Sumatra through Tokopedia in 2022 increased by almost five times," said Ekhel.
Hyperlocal Tokopedia Makes Online Shopping Easier in North Sumatera
To accommodate the high interest in online shopping among the public, Tokopedia has introduced a Hyperlocal initiative with geo-tagging technology. This initiative brings buyers and sellers closer, allowing buyers to find the products they need efficiently.
“Hyperlocal Tokopedia has positively impacted the number of buyers in North Sumatra, including Medan and nearby areas, increasing by more than 1.5 times in May 2023 compared to the monthly average from January to April 2023. The areas with the highest increase in buyers were Medan, Gunungsitoli, Batu Bara, Pakpak Bharat, and Tanjung Binjai," said Ekhel.
The best-selling categories in North Sumatra, including Medan and its surroundings, from January to May 2023 were Household, Health, Food and Beverage, Fashion, and Electronics.
The Hyperlocal Tokopedia initiative is implemented various campaigns, including Waktu Indonesia Belanja (WIB), which saw a nearly 1.5 times increase in buyers in the North Sumatra campaign, including Medan and its surroundings, in May 2023 compared to the monthly average from January to April.
"During January to May 2023, the most frequently used promotions by the people of North Sumatra, including Medan and nearby areas, are Bebas Ongkir (Free Shipping) and Cashback," explained Ekhel.
Tokopedia's Hyperlocal Manifestations Encourage Growth in North Sumatra's MSMEs
According to data from the Ministry of Cooperatives and SMEs of the Republic of Indonesia, the contribution of local MSMEs to Indonesia's GDP is increasing every year, reaching 60.3% in 2019. The Indonesian government is targeting entrepreneurial growth in Indonesia of 4% in 2024.
"In line with the Indonesian government's efforts to increase the number of entrepreneurs in Indonesia, Tokopedia has now become home to around 14 million sellers who are almost 100% MSMEs. They market more than 1.8 billion products to people in 99% of the sub-districts in Indonesia," said Ekhel.
"Tokopedia is making various efforts to simplify the process of creating business opportunities for entrepreneurs, particularly those in the MSME sector. One such measure is Hyperlocal, which enables entrepreneurs from all over Indonesia, including North Sumatra, to utilize digital channels. As a result, based on Tokopedia's internal data, the regions of Nias, North Nias, West Nias, Dairi, and Medan in North Sumatra experienced the highest increase in the number of sellers in North Sumatra in May 2023, compared to the monthly average from January to April 2023,” added Ekhel.
One of the Hyperlocal Tokopedia manifestations is Kumpulan Toko Pilihan (KTP), a product curation page of the seller closest to the buyer's location. As a result of the KTP campaign, the number of transactions in North Sumatra, including Medan and its surroundings, increased by almost 1.5 times in May 2023 compared to the monthly average from January to April 2023.
Another Hyperlocal Tokopedia manifestation is Dilayani Tokopedia, an order fulfillment service that enables sellers to store products at smart warehouses in high-demand areas. Throughout May 2023, compared to the monthly average from January to April 2023, Tokopedia recorded an increase of more than 2.5 times in the number of sellers using Tokopedia's smart warehouses in North Sumatra, including Medan and its surroundings. Transactions via Dilayani Tokopedia in North Sumatra also increased 2.5 times.
"Overall, Hyperlocal Tokopedia and its various manifestations have driven an increase in the number of sellers in North Sumatra, including Medan and nearby areas, by almost 2.5 times in May 2023 compared to the monthly average from January to April 2023," explained Ekhel.
Fog Apothecary, a Medan MSME and seller on Tokopedia, sells essential oils, body care, and home fragrance products made from natural ingredients. Since joining Tokopedia in 2018 and participating in various campaigns, such as Hyperlocal initiatives like KTP, Fog Apothecary's business has been growing and developing.
Coffeenatics, a coffee business founded by Harris Hartanto and Norita Chai in 2015, has benefited a lot from Tokopedia's Hyperlocal initiatives, such as Dilayani Tokopedia, and succeeded in employing hundreds of local coffee farmers. (Full stories of these two MSMEs can be seen in the attachment.)
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ATTACHMENT - SELLER STORIES
Medan MSME 'Fog Apothecary' Creates Jobs for Hundreds of Farmers with Production of Essential Oils for Sensitive Skin
Essential oils are extracted from specific plants and are commonly used in aromatherapy for their psychological benefits, such as calming the mind. The most popular essential oils bought on Tokopedia in Medan and nearby areas are those with woody and floral scents, with a twofold and five times increase in sales, respectively.
In 2017, Vivi Tantri, founder of one of Medan’s MSMEs on Tokopedia Fog Apothecary, saw that the business opportunity for essential oil products was still wide open. Vivi decided to produce and market a wide range of essential oils with various uses, such as skin care, air fresheners, anti-mite and bacterial sprays, and many more.
Vivi learned to make essential oils by herself. "We partnered with hundreds of local farmers to get natural and high-quality spices, such as ginger, clove, and patchouli extracts. We minimize chemical additives so it is safe for sensitive skin," explained Vivi.
Vivi has two employees, and both are women. This aligns with the results of the LPEM FEB UI 2023 research, where sellers on Tokopedia have an average of two workers, and more than half (58.47%) employed by sellers on Tokopedia are women.
"Since joining Tokopedia in 2018, our business has continued to grow. During the first quarter of 2023, there was an increase in the number of Fog Apothecary transactions through Tokopedia, almost 1.5 times compared to the first quarter of 2022. Our turnover has also increased more than two times compared to before using Tokopedia," Vivi concluded.
Collaborating with Hundreds of Coffee Farmers, Medan MSME 'Coffeenatics' Earn Hundreds of Millions in Turnover
Indonesia is known as one of the largest coffee producers in the world. The 2023 Central Statistics Agency (BPS) report recorded that Indonesia's coffee production will reach 794.8 thousand tons in 2022, an increase of around 1.1% compared to 2021. North Sumatra is the third largest coffee-producing province, with 212.4 thousand tons or 26.72% of national coffee production.
Based on Tokopedia's internal data in May 2023 compared to the January-April 2023 average, Gayo coffee is one of the most popular types of coffee among the people of North Sumatra, including Medan and its surroundings, with an increase in the number of transactions of nearly 1.5 times.
Harris Hartanto got the idea to establish Coffeenatics while studying in Australia. “The locals there highly value coffee culture, despite their country not producing coffee. As a coffee-producing country, Indonesia has the potential to produce exceptional local coffee, especially specialty coffee,” said Harris. “I felt pulled to return to Indonesia and set up Coffeenatics in Medan. We want coffee produced by local farmers to be the main choice of the Indonesian people," continued Harris.
Coffeenatics has various programs to empower local coffee farmers, including the Field Adoption Program in Aceh, Simalungun, Karo, and Bali. "This program is carried out to help farmers control the quality of coffee beans while helping to improve the economy of local coffee farmers," explained Harris.
Coffeenatics focuses on online sales through Tokopedia by using Dilayani Tokopedia to expand its market reach. "Since joining Tokopedia, Coffeenatics transactions have increased up to 3.5 times yearly," concluded Harris.
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About Tokopedia
Tokopedia is an Indonesian technology company with the goal of achieving digital economic equality. Tokopedia’s vision is to build a Super Ecosystem that enables anybody to start and explore anything. Tokopedia currently empowers millions of sellers and users via marketplaces, digital products, fintech and payments, logistics and fulfillment, and Tokopedia Partners. Tokopedia is a member of the GoTo group, the largest digital ecosystem in Indonesia that encompasses Gojek, Tokopedia, and GoTo Financial.
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