Instagram’s Impact on Indonesian Businesses

With Instagram’s global influence of bringing consumers closer to the things they love, which includes, Small and Medium Businesses (SMBs), the platform has grown to be one of the most widely-used business platforms in Indonesia.

The author(s)

  • Adam Isaacson Client Organisation, USA
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Instagram is enabling the success of SMBs by allowing them to reach a broader range of customers within their own cities, throughout Indonesia and abroad. The tools provided by Instagram facilitate building deeper relationships between businesses and consumers, making it easier for SMBs to attract, interact and sell to consumers than ever before.

Instagram’s large consumer base offers great potential for small businesses to reach new customers

When interested in a business, 4 in 5 Instagrammers (81%) turn to Instagram to learn more about them.

  • 90% of Instagrammers surveyed have used Instagram to communicate with a business
  • 76% of Instagrammers have purchased from a brand after discovering them on Instagram, either locally or internationally.
  • Amongst Instagrammers who have discovered a brand on Instagram, 66% are likely to purchase a product or service from the brand.
  • 62% of SMB owners/founders found inspiration from other businesses on Instagram, with a quarter agreeing that they could not have established their business without it.

The rise of Instagram-first businesses

52% of businesses surveyed prefer to send customers to their Instagram profile instead of their website.

  • 49% of the businesses surveyed strongly agree that their Instagram is more essential for their company than a website.
  • 43% ranked Instagram to be the most important platform for the continued success of their business.
  • 66% of the businesses strongly agree that “Instagram helps find customers in other cities, states or countries”.
  • 45% of Instagrammers strongly agree that “seeing people who have started businesses on Instagram makes me think about trying to start a business myself “

Instagram is where business gets done. Through Instagram, SMBs are able to attract, interact and sell to consumers easier than ever before

82% of Indonesian businesses receive a Direct Message from a customer daily.

  • Over two thirds of the businesses strongly agree (68%) that Instagram helps them find new customers.
  • 87% agree they have increased sales because of Instagram
  • Just under two thirds (65%) strongly agree that Instagram Stories allows them to showcase their products/services from a new perspective.
  • 63% strongly agree that they have been able to build better relationships with their customers through communication features
  • 65% agree Instagram helps them in being able to develop new products based on customer feedback

Many Instagrammers in Jakarta see Instagram as a source of inspiration for their purchases

81% of Instagrammers in Jakarta have purchased from a brand after discovering them on Instagram

  • 77% of Instagrammers in Jakarta follow businesses specifically to be inspired to buy new things
  • 81% of Instagrammers in Jakarta have purchased from a brand after discovering them on Instagram
  • Over two thirds (68%) of Instagrammers in Jakarta agree they follow magazines and newspapers to get shopping inspiration
  • 83% of Instagrammers in Jakarta like finding new brands or products on Instagram that aren’t available in big stores
  • Over half (56%) of Instagrammers in Jakarta have discovered both Indonesian and international brands on Instagram

Lastly, Instagram Helps Young Entrepreneurs (owners under 35 years old) Find Success:

  • A majority (63%) of businesses strongly agree that “Instagram helps new businesses launch and succeed”.
  • 82% of Young Entrepreneurs strongly agree that “Instagram helps young entrepreneurs achieve their business goals”; and 73% Strongly agree “Instagram helps new businesses launch and succeed”.
  • 74% of Young Entrepreneurs strongly agree that “their business grew out of their Instagram account”; and 71% strongly agree Instagram gives them the power to build their business on their terms.
Technical Note – Report Methodology
In a study commissioned by Instagram, Ipsos interviewed online a representative quota sample (with quotas set by age and gender) of 3,012 Instagram users aged 13+ across Indonesia (Instagrammers) as well as 502 Instagram business users from small and medium businesses (under 250 employees). Within the SMB sample, we interviewed 102 owners / founders. The SMB sample were all solely or jointly responsible for their company’s advertising, marketing, PR or communication activities and use Instagram on behalf of their company. Interviews were conducted online between August 21 and September 6, 2018.
Sample size of the subgroups included:
Instagrammers sample: Males (n=1,503), Females (1,509), Under 35s (n=2,425), 35s and over (n=587), Frequent travelers: those that take 3-5 trips per year (n=1,033), less frequent travelers 1-2 trips (n=893), Those in Jakarta (n=558), Those Outside Jakarta (n=2,454), those who have discovered a brand on Instagram (n=2,727)
SMB sample: Owners/founders (n=102), Non-Owners/founders (n=369)
Newly established SMBs (under 5-year-old) (n=75), Young entrepreneurs (owners/founders under 35) (n=62), Businesses in tourism related industries (n=115), Under 35s (n=353), 35s and over (n=149), Jakarta (n=125), Outside Jakarta (n=377), Non-owners/founders outside Jakarta (n=276)

The author(s)

  • Adam Isaacson Client Organisation, USA

Media & Brand Communication