Indonesia’s fast-moving consumer goods (FMCG) distribution landscape is undergoing fundamental transformation, with ProSpace Indonesia’s Retail Distribution Report indicating that traditional trade still accounts for 63% of sales but is rapidly evolving through digitalization and modern approaches.
Digital ordering platforms now serve 840,000 traditional retailers nationwide, enabling direct connections with manufacturers and improved inventory management. These platforms processed approximately $7.2 billion in transactions during 2024, representing 28% of traditional trade volume.
“Indonesia’s FMCG distribution is experiencing hybrid evolution rather than simple modern trade conversion,” notes Surya Dharma, Retail Channel Specialist at ProSpace. “Traditional outlets are adopting technology and modern practices while maintaining their community-embedded characteristics and convenience advantages.”
Modern trade continues expanding with approximately 42,000 minimarkets and 1,750 supermarkets now operating nationwide. However, growth rates have moderated to 7.5% annually as markets approach saturation in urban areas. Convenience store formats incorporating food service elements show the strongest performance within modern trade.
Direct-to-consumer models gain traction with manufacturers increasingly establishing their own e-commerce platforms and subscription services. Meanwhile, quick commerce platforms offering delivery within 30 minutes have captured 4.3% of urban FMCG sales despite challenging unit economics.
Rural distribution remains challenging but is improving through agent-based models and technology platforms connecting village entrepreneurs with distribution networks. Mobile-based ordering combined with motorcycle delivery enables product assortment expansion in previously underserved areas.
For FMCG distribution analysis: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates