How to Start an Online Store in Indonesia — Complete Step-by-Step Guide (2026)

Indonesia's ecommerce market is one of the fastest-growing in Southeast Asia. With over 210 million internet users and a digital economy projected to surpass $130 billion by 2026, there has never been a better time to start an online store in Indonesia. Whether you want to sell fashion, electronics, food products, or handcrafted goods, this guide will walk you through every step of launching your ecommerce business.

In this comprehensive guide, we will cover: choosing a niche, business registration (NIB and NPWP), selecting an ecommerce platform, setting up payment with Xendit, configuring shipping with Biteship, PPN tax compliance, launching your mobile app, and marketing your store.

Step 1: Choose Your Niche and Products

The first step is deciding what to sell. Indonesia is a diverse market with over 270 million people spread across 17,000+ islands. Choosing a specific niche is critical — a focused store grows faster than one that tries to sell everything. Here are some of the most popular and profitable ecommerce niches in Indonesia:

• Fashion and Clothing — Muslim fashion (hijab, gamis), streetwear, batik, local designer brands. Indonesia is one of the world's largest markets for modest fashion.
• Beauty and Personal Care — Skincare (especially Korean and local brands), cosmetics, halal beauty products. The Indonesian beauty market is growing at 7%+ annually.
• Food and Beverages — Snacks, coffee, sambal, healthy food, frozen food. Indonesians love trying new food products online.
• Electronics and Gadgets — Phone accessories, smart home devices, computer peripherals, gaming equipment.
• Home and Living — Home decor, furniture, kitchenware, bedding, organization products.
• Health and Wellness — Herbal supplements (jamu), fitness equipment, vitamins, organic products.
• Baby and Kids — Baby clothing, toys, educational products, maternity items.

Pro tip: Start with a specific niche rather than trying to be a general store. A store focused on "organic skincare for oily skin" will outperform a store selling "everything beauty" because you can target your marketing more effectively and build a loyal community.

Step 2: Register Your Business (NIB, NPWP)

Before you start selling online in Indonesia, you need to take care of some legal requirements. Proper business registration protects you legally and is required for payment gateway approval.

Step 3: Choose an Ecommerce Platform

This is the most important decision you will make. Your ecommerce platform determines your website, admin panel, payment processing, shipping management, and customer experience. You need a platform that handles everything so you can focus on selling.

Here are the main options available for Indonesian businesses:

Our recommendation: FlexiCommerce — from Rp 349.000/month + affordable hosting, 500+ features, 3 mobile apps, Xendit + Biteship built-in, PPN compliant. See full pricing details here.

Step 4: Set Up Payment Gateway (Xendit)

Xendit is Indonesia's leading payment gateway, trusted by thousands of businesses and powering payments for companies of all sizes. It supports every payment method that Indonesian customers use:

• QRIS — The universal QR code standard. Customers can scan and pay using any QRIS-compatible app (GoPay, OVO, DANA, ShopeePay, bank apps). Extremely popular for small to medium transactions.
• Credit and Debit Cards — Visa, Mastercard, JCB. Supports 3D Secure for fraud protection.
• Bank Transfer (Virtual Account) — BCA VA, Mandiri VA, BNI VA, BRI VA, Permata VA. Many Indonesian customers prefer bank transfers for larger purchases.
• E-Wallets — GoPay, OVO, DANA, ShopeePay, LinkAja. E-wallets are extremely popular in Indonesia, especially among younger consumers.
• Convenience Store — Indomaret and Alfamart over-the-counter payments. Customers get a payment code and pay at the nearest store.
• Cash on Delivery (COD) — Still important in Indonesia, especially for first-time online buyers and customers in smaller cities.

FlexiCommerce comes with Xendit pre-integrated — simply connect your Xendit merchant account and all payment methods are automatically available. No coding, no plugins, no complicated setup.

Step 5: Configure Shipping (Biteship)

Shipping logistics can be challenging in Indonesia — the country spans over 5,000 km across thousands of islands. Biteship solves this by aggregating 30+ courier services into a single integration:

• JNE — Indonesia's oldest and most trusted courier, with REG, YES, and OKE services.
• J&T Express — Fast-growing courier with extensive coverage across Java and outer islands.
• SiCepat — Known for competitive pricing and fast delivery times.
• Ninja Xpress — Tech-forward courier with excellent tracking and cash-on-delivery support.
• GoSend — Same-day delivery within cities, integrated with Gojek ecosystem.
• GrabExpress — Same-day and instant delivery, popular in major Indonesian cities.
• Pos Indonesia — Government postal service with coverage to even the most remote areas.
• Anteraja, SAP Express, Lion Parcel — Additional courier options for wider coverage.

FlexiCommerce has Biteship built-in — customers automatically see available couriers and real-time shipping rates at checkout based on their location. No manual rate calculation needed.

Understanding the Indonesian Address System

Indonesian addresses follow a hierarchical system that is important to understand for accurate shipping:

FlexiCommerce's checkout form is designed with Indonesia's address hierarchy in mind, making it easy for customers to input accurate shipping details and reducing delivery failures.

Step 6: Add Products and Configure Your Store

Once your platform is set up, it is time to add your products and configure your store settings. Here is a checklist:

1. Upload high-quality product images (white background, multiple angles, lifestyle shots)
2. Write detailed product titles and descriptions with relevant keywords
3. Set pricing in IDR (Rp) with variants for size, color, or material
4. Organize products into categories and subcategories
5. Set inventory/stock quantities and enable low-stock alerts
6. Add product weight and dimensions for accurate shipping calculations
7. Configure PPN 11% tax settings for proper invoicing
8. Set up shipping zones and available courier services

PPN 11% Tax Compliance

Indonesia's PPN (Pajak Pertambahan Nilai) is a value-added tax of 11% that applies to most goods and services. If your business is a PKP (Pengusaha Kena Pajak), you are required to collect PPN on sales and issue tax invoices (Faktur Pajak). Key things to know:

• PPN rate is 11% (increased from 10% in April 2022)
• PKP registration is required when annual turnover exceeds Rp 4.8 billion
• Even if you are below the PKP threshold, you can voluntarily register to claim input tax credits
• Every taxable transaction requires a Faktur Pajak (tax invoice) with proper PPN breakdown
• Monthly PPN reporting through SPT Masa PPN is mandatory for PKP businesses

FlexiCommerce handles PPN calculation automatically — tax is calculated on every order, shown on invoices, and reported in your admin dashboard. No manual spreadsheets or separate tax software needed.

Step 7: Launch Your Mobile App

Indonesia is a mobile-first country. With 73% of internet users accessing the web primarily through smartphones, having a dedicated mobile app is not optional — it is essential for ecommerce success. Mobile apps deliver 3x higher conversion rates compared to mobile websites because of faster loading, push notifications, and a native user experience.

FlexiCommerce includes 3 mobile apps at no additional cost:

• Customer App — Native iOS and Android app with push notifications, voice search, wishlist, order tracking, and gamification (spin-the-wheel, scratch cards) to boost engagement and repeat purchases.
• Seller/Vendor App — If you are running a multi-vendor marketplace, sellers can manage their products, process orders, and track earnings from their phones.
• Delivery Partner App — Your own delivery team can accept, navigate to, and complete deliveries with real-time GPS tracking. Perfect for hyperlocal delivery models.

All three apps are published to the Google Play Store and Apple App Store under your own brand name and logo. Your customers download your app — not a generic third-party app.

Step 8: Marketing and Getting Your First Customers

Your store is live — now it is time to get customers. Here are the most effective marketing strategies for Indonesian ecommerce businesses:

• Social Media Marketing — Instagram and TikTok are the dominant platforms for ecommerce in Indonesia. Post product photos, behind-the-scenes content, customer reviews, and short-form video content (Reels/TikTok). Run targeted ads to reach specific demographics.
• WhatsApp Marketing — WhatsApp is used by 90%+ of Indonesians. Use WhatsApp Business for product catalogs, broadcast messages, and direct customer communication. Many Indonesian consumers prefer to chat before buying.
• Google Ads — Run Google Shopping ads targeting product-specific keywords. Also run search ads for "buy [product] online Indonesia" type queries.
• SEO (Search Engine Optimization) — Optimize product titles and descriptions with relevant Indonesian keywords. Write blog content targeting "how to" and "best product" searches. Build backlinks from Indonesian websites and directories.
• Influencer Marketing (KOL) — Partner with micro-influencers (Key Opinion Leaders) on Instagram and TikTok. Indonesian consumers trust influencer recommendations. Micro-influencers (10K-100K followers) often deliver better ROI than mega-influencers.
• Marketplace Cross-listing — While building your own store, also list products on Tokopedia, Shopee, and Lazada to capture marketplace traffic. Use your own store for direct-to-consumer relationships and higher margins.
• Launch Promotions — Offer a special discount for your first 100 customers. Run flash sales, free shipping promotions, or bundle deals. Create urgency with limited-time offers. Indonesians respond very well to promotional pricing.
• Harbolnas and Payday Sales — Participate in Hari Belanja Online Nasional (12.12, 11.11, 10.10) and payday sales events. These are the biggest ecommerce sales events in Indonesia and drive massive traffic.

Total Cost to Start an Online Store in Indonesia

Compare that to Shopify where you would pay ~Rp 630.000/month just for the platform, plus USD-denominated theme and app costs. With FlexiCommerce at Rp 349.000/month + hosting from Rp 250.000/month, you pay significantly less than Shopify — and you get 3 mobile apps, Xendit, and Biteship included.

Conclusion

Starting an online store in Indonesia in 2026 is more accessible and affordable than ever. With the right platform, you can go from zero to a fully functional ecommerce store with mobile apps in under a week. The key steps are: choose a focused niche, register your business (NIB + NPWP), pick an ecommerce platform that handles everything, set up Xendit for payments, configure Biteship for shipping, launch your mobile app, and start marketing.

FlexiCommerce makes this entire process seamless. Starting at just Rp 349.000/month + affordable hosting, you get a complete ecommerce ecosystem — website, 3 mobile apps, admin panel, Xendit payment gateway, Biteship shipping, PPN compliance, and 500+ features. No commission on sales, cancel anytime, and your store can be live in as little as 20 minutes.