Jakarta. Smartphone shipments to Indonesia are forecast to grow 20 percent this year as the country’s purchasing power continues to climb, leaving many with money to spend to make online purchases, according to information technology research firm International Data Corporation.
IDC projected that smartphone shipments will reach nearly 30 million units this year, compared to 24.8 million units in 2014.
“We believe this great increase in smartphone shipments will bring a positive effect to the growth of e-commerce in Indonesia,” said Lutfi Avianto, senior market analyst at IDC Indonesia, to reporters in Jakarta on Wednesday.
Still, IDC forecast that total IT spending in Indonesia will decline 7 percent to $15.6 billion this year, compared to $16.8 billion it estimated for 2014.
Spending includes both corporate and retail purchases such as smartphones, e-payment solutions as well as tablets and personal computers.
Still, Lutfi said that Indonesia is one of the biggest IT consumers in the Asia-Pacific region thanks to robust growth in the retail sector.
“Indonesia’s high IT consumption is backed by the lifestyle of Indonesian consumers that are increasingly using IT devices to improve their quality of life,” said Lutfi.
The country’s economy is forecast to have grown between 5.0 percent and 5.3 percent last year, according to IDC. This compared to 5.8 percent growth in 2013. Official data from the Central Statistics Agency (BPS) have yet to be released.
Household spending makes up more than 50 percent of the country’s economic activity.