2026.08.24 Indonesia E-commerce FMCG Grows 29.4% in H1, Home Care Category Leads with 78%

01. Indonesia E-commerce FMCG Grows 29.4% in H1, Home Care Category Leads with 78%

Compas.co.id data shows Indonesia's e-commerce FMCG transaction value reached 88.4 trillion IDR in H1 2026, up 29.4% year-on-year, with all five major categories achieving both volume and value growth. Home care led the surge with 78.3% growth, followed by food & beverages (+52.1%) and beauty & personal care (+20.8%). Ramadan and Eid al-Fitr fueled remarkable gains in mineral water (+219%) and cooking oil (+123%). The platform landscape remains highly concentrated, with Shopee and TikTok Shop/Tokopedia accounting for 99% of total FMCG sales — a critical insight for cross-border sellers navigating channel selection in Indonesia.

02. Yiwu AI Companion Dog "Motutu" Goes Viral, Attracting Middle East and Southeast Asian Buyers at Under 500 Yuan

A Yiwu tech store has captured attention with "Motutu," an AI companion dog priced under 500 yuan. The product understands continuous commands, engages in multi-turn conversations, and performs backflips. The developer reduced AI system costs to just 20-30 yuan, enabling the retail price to stay below 500 yuan. Middle Eastern and Southeast Asian buyers have been queuing at the booth to test and inquire about the product. The store also features other robotics offerings, including a dancing service robot and a stunt dog capable of doing push-ups. This demonstrates Yiwu's growing capability in producing affordable AI-powered consumer goods for emerging markets.

03. Indonesia Plans 50% Service Fee Reduction for Local MSME Sellers on Shopee and Other Platforms

Indonesia's Ministry of SMEs plans to sign a ministerial decree on August 24 or 25, offering micro and small enterprises that sell locally produced goods on platforms such as Shopee and TikTok Shop up to a 50% discount on platform service fees. The policy is expected to take effect by the end of August. Eligible sellers must apply through the "SAPA UMKM" system, declaring that their products are Indonesian-made. After dual review by both the government and the platform, discounts will be applied starting the month following approval. Cross-border sellers should monitor this policy closely as it may affect competitive dynamics for locally produced versus imported goods.

04. Thai Retailers Association Calls for Regulation of Cross-border Low-priced Goods; Online Retail Grows 23.5% Squeezing Physical Stores

The Thai Retailers Association (TRA) has highlighted that Thailand's online retail is growing at 23.5% annually, far outpacing physical channel growth of just 7.5%. The influx of low-priced cross-border goods is squeezing the market space of approximately 3.3 million local SMEs. TRA noted that some cross-border sellers exploit regulatory differences to circumvent compliance costs that local businesses bear, including taxes, operating licenses, and product certification, creating unfair competition. The association urges the government to establish unified product standard oversight, requiring all foreign online goods to meet the same safety and quality certifications as local products, and to strengthen cross-border e-commerce tax collection, with platforms responsible for collecting and remitting import duties.