Social media and youth engagement fuel Indonesia’s affiliate marketing rise

Affiliate marketing thrives in Indonesia due to influencer-driven consumer habits.

With over 270 million internet users, Indonesia is emerging as a hotspot for affiliate marketing, largely driven by social media influencers and an engaged youth population. According to Adhistya Febriani, Associate Research Director for Indonesia at Kadence International, this growth can be attributed to how deeply embedded digital platforms are in the lives of Indonesian consumers.  

“Seventy percent of Indonesian consumers are more likely to purchase products recommended by influencers,” said Febriani. She emphasised the role of platforms such as Instagram, YouTube, and TikTok in driving high engagement and conversion rates. The median age of the population, just 30 years, means Indonesia’s youth are highly active on digital platforms, providing a fertile ground for affiliate marketers. 

Febriani highlighted how it offers a cost-effective way for brands to reach their audience. “Mostly, retailers are paying money for actual results that come from leads or clicks,” she explained, underscoring how performance-based models are a key benefit for businesses. 

"These influencers have dedicated followers, enabling retailers to expand their reach and effectively engage their target audience,” Febriani added. This personalised approach also helps build trust, an essential factor in driving conversions in today’s digital economy.

Indonesia’s affiliate marketers stand out from other markets due to their localised approach. Whether it's promoting special deals during cultural events like Ramadan or using local slang and trends, affiliates are able to connect with consumers on a more personal level.

Addressing concerns about the authenticity of affiliate marketers, Febriani explained that the use of unique links helps ensure the credibility of affiliates. "Basically, the affiliates have unique links that everyone can track, and those who drive the most unique content are usually the highest viewers,” she said.