https://doi.org/10.26593/jihi.v15i2.3291.165-183

The Impacts of E-Commerce to Regional Integration in Southeast Asia
Sukmawani Bela Pertiwi1, Amalia Sustikarini2, Paramitaningrum3
1

Faculty of Humanities, Bina Nusantara University, Indonesia, sukmawani.pertiwi@binus.ac.id
Faculty of Humanities, Bina Nusantara University, Indonesia, amalia.s.suwarno@gmail.com
3
Faculty of Humanities, Bina Nusantara University, Indonesia, paramitaningrum@binus.edu

2

ABSTRACT
This paper aims to examine the social impacts of e-commerce on regional integration in Southeast Asia.
This paper argues that the existing literature takes for granted the positive relations between trade and regional
integration; define narrowly regional integration in economic terms; and thus, focus mainly on economic impacts of
e-commerce to regional integration in Southeast Asia. In contrast to this existing view, regional integration
envisioned by ASEAN is not only economic but also social, emphasizing the development of a sense of belonging
among regional members. In addition, the logics of the business sector, including e-commerce, may or may not be in
line with the logics of ASEAN in imagining regional integration, and thus giving a possibility for the convergence or
divergence of interests between the two. Applying constructivist approach on how imagination and transaction
contribute to promoting region-ness among regional members, this paper finds that the imagination and transaction
of e-commerce actors in the region has not had significant social impact to regional integration and may even
develop risk of widening the gap among Southeast Asian countries as the imagination and transaction of many of
the e-commerce actors in Southeast Asia are concentrated in the more developed parts of the region.
Keywords: E-Commerce, Regional Integration, Southeast Asia, Constructivism
ABSTRAK
Artikel ini bertujuan untuk menganalisa dampak sosial dari perdagangan elektronik terhadap integrasi
kawasan di Asia Tenggara. Artikel ini berpendapat bahwa literatur yang tersedia mendefinisikan secara sempit
integrasi kawasan dalam kerangka ekonomi sehingga hanya berfokus pada dampak ekonomi dari perdagangan
elektronik terhadap integrasi kawasan. Dari sudut pandang yang berbeda, integrasi kawasan yang menjadi visi
ASEAN bukan hanya terletak pada aspek ekonomi, tetapi juga pada aspek sosial dengan penekanan pada rasa
memiliki di antara anggota kawasan ini. Logika sektor bisnis, termasuk pelaku perdagangan elektronik,dapat atau
tidak dapat sejalan dengan logika ASEAN dalam mengimajinasikan integrasi kawasan, sehingga dapat
menghasilkan penyatuan atau justru pemisahan kepentingan dari dua entitas ini. Dengan menggunakan pendekatan
konstruktivisme dalam melihat kontribusi imajinasi dan transaksi untuk mempromosikan rasa memiliki antar
anggota kawasan, artikel ini menyimpulkan bahwa imajinasi dan transaksi dari para pelaku perdagangan elektronik
di Asia Tenggara belum menghasilkan dampak sosial terhadap integrasi kawasan. Perkembangan perdagangan
elektronik justru berpotensi menimbulkan resiko terhadap melebarnya jarak di antara negara-negara di Asia
Tenggara karena imajinasi dan transaksi dari kebanyakan pelaku perdagangan elektronik di Asia Tenggara lebih
terkonsentrasi di negara-negara yang lebih maju secara ekonomi di kawasan ini.
Kata Kunci : Perdagangan Elektronik, Integrasi Kawasan, Asia Tenggara, Konstruktivisme

Introduction
In his famous book “Imagined Communities:
Reflection on the Origin and the Spread of
Nationalism”, Benedict Anderson defined a
nation as a social construct, which means it is
not naturally given but it exists because it is

constructed by members of the nation itself. It is
an “imagined community” because “the
members of even the smallest nation will never
know most of their fellow-members, meet them,
or even hear of them, yet in the minds of each

165

166 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

lives the image of their communion”. 1 But a
nation, in Anderson’s words, is also limited
because “even the largest of them encompassing
perhaps a billion living human being, has finite,
if elastic, boundaries, beyond which lie other
nations”.2 This description of a nation is what
then constructivist theorist of International
Relations, referred to when they defined a
region. 3
For constructivist, a region is not a
simple summation of countries living in
geographical proximity nor is it simply a group
of countries sharing a similar culture and
historical background – even though both are
important foundations for a region. The region is
socially constructed by actors. 4 But while in
many cases they are constructed first of all by
external actors as in the case with region of
colonial states and also Southeast Asia which
first of all emerged as a British military naming
of command in the south of China and the east
of India, region is more importantly a product of
social construct or imagination of indigenous
actors. It is the we-feeling among its members,
as Karl W. Deutsch named it, that gives meaning
to a region. 5 In this case, countries may be
geographically far apart, but the shared
imagination about how interaction in the region
should be conducted is what makes a community
1

Benedict Anderson, Imagined Communities:
Reflection on the Origin and the Spread of
Nationalism (Revised Edition), (London: Verso,
2006), 9.
2
Anderson, Imagined Communities, 50.
3
See, Amitav Acharya, The Quest for Identity:
International Relations of Southeast Asia,
(Singapore: Oxford University Press, 2000). Amitav
Acharya, The Making of Southeast Asia:
International Relations of A Region. (Ithaca: Cornell
University Press, 2012).
4
See, Acharya, The Making of Southeast Asia.
5
K.W. Deutsch, Political Community and the North
Atlantic Area. In B. F. Nelsen, & A. Stubb, The
European Union: Readings on the Theory and
Practice of European Integration, (London: Lynne
Rienner Publisher, 2003), 121-143.

of countries could be categorized as a region or
some would say an integrated region. A
popularly known security community in this
sense, for example, is a group of countries
having shared imagination that their interaction
should be conducted by peaceful means. It is a
region where war is unthinkable.6 And, it is this
vision that regional organizations such as the
European Union, North Atlantic Treaty
Organization, and the Association of Southeast
Asian Nations (ASEAN) were originally
founded. Given this definition, constructing or
integrating a region requires socialization of this
imagination to others. For Deutsch, increasing
transaction within the region through economic
exchanges and mobility of people are central in
promoting trust, transparency, shared value, and
vision among regional members.7 Therefore,
many regions, including Southeast Asia, begin
their integration with fostering economic
integration such apparent in the case of the
ASEAN
Economic
Community (AEC).
However, what is less discussed in the existing
literature is the fact that it is not only states or
group of states that construct the region. Other
actors from the business sector, civil societies,
prominent individuals, to vernacular groups
have their own imagination of the region which
may or may not be similar to that of the states. If
these imaginations converged, the region
becomes more cohesive and integrated. If they
differed, the region is not well integrated or even
divided.
It is, at this point, that the relations
between trade and regional integration become
6

See E. Adler, & M. Barnett, Security Communities.
(Cambridge: Cambridge University Press, 1998).
7
J. Eayrs, (1958, Feb). “Review: Political
Community and the North Atlantic Area:
International Organization in the Light of Historical
Experience by Karl W. Deutsch,” The Canadian
Journal of Economics and Political Science / Revue
canadienned'Economique et de Science politique,
24 (February 1958): 121-123,
doi:http://www.jstor.org/stable/139125

167 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

interesting. Trade has long been argued to be the
key factor in regional peace and integration. 8
Therefore, the existing literature focuses more
on the economic impacts of trade on regional
integration with the increasing trade activities
among regional members seen as indicators for a
more economically integrated region. The
scorecard toward the AEC, for example,
measures the progress of the AEC by looking at
the increase of the free flow of goods, services,
investment, capital, and skilled labor in the
region. 9 The launching of the AEC in the past
2015 was unsurprisingly conducted when all
tariff and non-tariff barriers of trade in all the
above-mentioned sectors (except agreed) have
been eliminated. Given this mainstream belief,
the current rising trend of e-commerce in the
region is then merely seen as an accelerating
factor in regional integration. Compared to the
neighboring region in East Asia, e-commerce in
Southeast Asia is indeed lagging behind. Retail
e-commerce in most Southeast Asian countries,
for example, accounted for only 4% of the total
revenue.10 However, with a large number of
D.C. Copeland, “Economic Interdependence and
War: A Theory of Trade Expectation”, International
Security, (1996): 8. J. Oneal, F.H. Oneal, Z. Maoz, &
B. Russett, “The Liberal Peace: Interdependence,
demcoracy, and International Conflict, 1950-1985”,
Journal of Peace Research, (1996): 11. Z. Maoz,
“The Effects of Strategic and Economic
Interdependence on International Conflict Across
Levels of Analysis”, American Journal of Political
Science, (2009): 223-224. E. Gartzke, Globalization,
Economic Development, and Territorial Conflict, in
M. Kahler, & F. B. Walter, Territoriality and Conflict
in An Era of Globalization, (Cambridge: Cambridge
University, 2006), 163. H. Lee & S. M. Mitchell,
“Foreign Direct Investment and Territorial Disputes”.
Journal of Conflict Resolution, (2012): 675-703. S.
Pertiwi, The Rise of Territorial Disputes and the
Stability of Southeast Asia. (Washington DC:
American University, 2014).
9
ASEAN, ASEAN Economic Community Blueprint,
(Jakarta: ASEAN Secretariat, 2008).
10
Competition Commission Singapore, Handbook on
E-Commerce and Competition in ASEAN,
(Singapore: Competition Commision Singapore).
8

population in the region, the sheer number of
young population, the rapid increase of middle
class, and the fast internet and mobile
penetration, many shared optimism on the
growth of e-commerce in the region. 11 The past
two years have revealed this trend as the
estimated size of e-commerce in the region has
increased more than 50% from only six billion
USD to estimated ten billion in 2017.12 The
increased presence of global e-commerce
players in the region together with the booming
of local e-commerce contenders strengthened the
lively competition among actors which at the
end are expected to foster further regional
economic integration as many argued.
However, as mentioned earlier, regional
economic integration is only the beginning and
one aspect of regional integration. ASEAN itself
in its official document mentions that the
ultimate purpose of the regional project is to
create a community of the ten countries
consisting of Indonesia, Malaysia, Singapore,
Thailand, the Philippines, Cambodia, Laos,
Myanmar, and Vietnam to be “politically
cohesive, economically integrated, and socially
responsible in order to effectively respond to
current
and
future
challenges
and
13
opportunities”.
In line with the above
explanation, the first and the third aspects of this
ASEAN integration entail the importance of
shared imagination and sense of belonging both
at the political and social level before it could be
11

Econsultancy, State of Ecommerce in Southeast
Asia. (Singapore: Econsultancy.com, 2014).
ASEANup. (2017, November 8). “Overview of ecommerce in Southeast Asia”, ASEANup, retrieved
from ASEANup: https://aseanup.com/overview-of-ecommerce-in-southeast-asia/
12
J. Camhi, J. (2017, May 16), “Southeast Asia's Set
for Explosive E-Commerce Growth,” retrieved from
Business Insider:
http://www.businessinsider.com/southeast-asias-setfor-explosive-e-commerce-growth-2017-5/?IR=T
13
ASEAN, The ASEAN Charter, (Jakarta: ASEAN
Secretariat, 2008).

168 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

politically cohesive and socially responsible and
caring each other. This, together with the earlier
discussion that business sectors and states may
or may not have similar logics or shared
imagination of what regional integration should
be like, then it could not be taken for granted the
view that the growth rate of e-commerce in the
region would automatically support regional
integration imagined by ASEAN. It is even in
our interest to ask: what are the social impacts of
e-commerce on regional integration in Southeast
Asia?
Theory/Method
As introduced above, Constructivism as the
theory in International Relations emphasized the
importance of 1) shared imagination and 2)
transactions in promoting regional integration.
Questioning the social impacts of e-commerce to
regional
integration,
therefore,
implies
questioning first of all how e-commerce actors
imagine Southeast Asia as a region and whether
this imagination is similar to that of imagined by
ASEAN. For Julien Cayla & Giana M. Eckhardt,
this could be seen from the selection of brands
for the products of these e-commerce actors. 14
Brands, for the authors, serve the function of the
printed newspaper in Anderson’s imagined
community. It allows people to have a new sense
of community with consumers of the same
brands beyond their national boundary and
identification. In Cayla and Eckhardt terms,
“brands mediate new kinds of social relations,
enabling the connection between people who
may have never seen each other”.15 In this sense,
what the e-commerce actors select and omit in
creating their brand is part of the process of
“remapping and redefining” the region in line
with their imagination.16 According to Cayla and
J. Cayla & G. M. Eckhardt, “Asian Brands and the
Shapping of A Transnational Imagined Community”,
Journal of Consumer Research, 35, (August 2008):
216
15
Cayla & Eckhardt, “Asia Brands”, 218
16
Cayla & Eckhardt, “Asia Brands”, 226
14

Eckhardt, there are two indicators that could be
used to analyze the actor’s imagination of a
region judging from their brand. First, how
actors “deterritorialize” and “unmoor” the brand
from a particular country, meaning how actors
create a brand that shifts their imagination away
from their home country. 17 This can be regional
or global. Therefore, related to this paper, this
first indicator could be used to examine in what
levels e-commerce actors in the region imagine
the scope of their potential consumer
community. If the selected scope is regional and
it is in line with the scope of region imagined by
ASEAN as to include the ten countries in
Southeast Asia, then e-commerce has positive
impacts to integration in the region. Second,
how actors describe the imagined community.
Brands that imagine their consumer community
to be dynamic urban-based, for example, would
tend to influence the young urban population,
which then raise more sense of belonging among
this section of the population compared to
others. This selected description by e-commerce
actors in the region would then help explain
which sections of the community that have
stronger we-feeling or which section are more
integrated into Southeast Asia. However, several
actors also use the strategy of “multicultural
collage” whereby in order to create a brand that
could go beyond national boundaries, actors tend
to demonstrate that they embrace different
components of society in their imagined
community.18 Yet again, this would have
implications that any components included in
this imagery would tend to have a stronger sense
of belonging compared to others. Nevertheless,
it is also worth to note Cayla and Eckhardt
finding19 of the answer given by the managers
when asked about their imaginations of Asia.
The managers focus on the urban centers of Asia
such as Shanghai, Hongkong and Singapore as
17

Ibid.
Cayla & Eckhardt, “Asia Brands,” 226
19
Cayla & Eckhardt, “Asia Brands,” 218
18

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in Southeast Asia

their imaginary center of Asia. The emphasis on
“class” that is represented by urban and elite
groups might only partially cover the society of
Asia. This tendency must also be considered
when we analyze the imagination of Southeast
Asia. Rather than promoting regional
integration, this exclusivity will potentially be
impeding the society cohesiveness.
In the second level, questioning the
social impacts of e-commerce to regional
integration also implies questioning how ecommerce actors promote transactions that could
increase integration across the region. According
to Karl W. Deutsch, regional integration should
not only occur at the elite political level but must
also occur at the societal level, because again, it
is the we-feeling among members in the region
that would give meaning to the region itself. 20 In
his argument, while shared imagination among
regional members is important, the transaction is
no less important because it is the transaction
that would enable socialization of this shared
regional imagination to as many members across
the region and it is a transaction that would help
to build mutual trust and understanding among
people within the region. E-commerce, in this
case, similar with other economic exchanges, is
supportive of regional integration not only by
increasing the cost of cutting off trading
relations as many have observed but also by
increasing emotional attachment among people
within the e-commerce ecosystem itself. The
effectiveness of the role of e-commerce,
however, depends on at least three main
circumstances: that the transaction must include
multiple areas, must be durable enough to ensure
mutual dependency, and must be based on
common values.21 If these two aspects of the
theoretical framework of constructivism
summarized in a model of an analytical tool to

20
21

Deutsch, “Political Community,” 121-143
Eayrs, “Review: Political Community,” 121-123,

answer the research question of this paper, it
would be as Figure 1.
Finally, based on this theoretical
framework, this paper proposes an argument that
e-commerce has social impacts to regional
integration in Southeast Asia through their
unique imagination and transaction which may
or may not be in line with regional integration
imagined by ASEAN. How they deterritorialize
and describe their consumer imagined
community together with the scope, durability,
and values of their transactions in the region
would lead to their positive or negative impacts
on the regional integration.
To elaborate this argument, this paper
uses a qualitative method based on the
consideration that the main focus of this research
is examining the imagination of e-commerce
actors in its relations to regional integration –
which is characteristically non quantifiable.
Even though the impacts of actors’ transaction
could be measured statistically, the durability
and values of the transaction are also nonquantifiable, and thus more suitable for
qualitative analysis. In applying this method,
this research is divided into three steps. First of
all, this paper identifies major e-commerce
actors in the region. Since no dataset available
across the ten countries in the region, this paper
creates a new dataset from various sources,
particularly from iprice group and ecommerceiq,
which list the top five e-commerce actors in
each member country based on their website
traffic in 2017.22 The assumption is that website
“The Map of E-Commerce in Indonesia,” iprice,
last modified June 2017, retrieved from iprice
insights:
https://iprice.co.id/insights/mapofecommerce/en/.
ecommerceiq. (2017). “Indonesia,” ecommerceiq,
last modified 2017, retrieved from Ecommerce IQ:
https://ecommerceiq.asia/top-ecommerce-sitesindonesia/. “iprice insights,” last modified June 2017,
retrieved from The Map of E-Commerce in Malaysia:
https://iprice.my/insights/mapofecommerce/en/.
22

170 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

traffic would reflect the scope and the number of
transaction of the individual e-commerce actor
as well their influence in that country or even at
the regional level. Given the small numbers of
actors that have expanded their activities beyond
national boundaries, the research limits the list
in each country only to five e-commerce actors.
Limiting the number of actors also beneficial in
narrowing the gap between a country with the
most developed and country with the least
developed e-commerce sector such as Laos
which has very few players and even none are
registered at the government system. Other
criteria applied to this dataset is the limit on the
type of players as to include only B2C (Business
to Consumer) and C2C (Consumer to
Consumer) actors while excluding the B2B
(Business to Business) actors because of the
focus of this paper on examining the role of ecommerce in promoting regional integration at
the societal level. It is also for this reason that
the list contains only a marketplace type of ecommerce where social interaction is massive
compared to other types of e-commerce.
However, the paper excludes e-commerce
conducted at social media because of the
difficulty of measurement in relations to its
“Malaysia,” last modified 2017, retrieved from Ecommerce IQ: https://ecommerceiq.asia/topecommerce-sites-malaysia/. “The Map of ECommerce in Thailand,” last modified June 2017,
retrieved from iprice insights:
https://ipricethailand.com/insights/mapofecommerce/
en/. iprice. (2017, June). “The Map of E-Commerce
in the Philippines,” last modified June 2017, retrieved
from iprice insights:
https://iprice.ph/insights/mapofecommerce/.
“Philippines,” last modified 2017, retrieved from ECommerce IQ: https://ecommerceiq.asia/topecommerce-sites-philippines/. iprice. (2017, June).
“The Map of E-Commerce in Vietnam,” last
modified June 2017, retrieved from iprice insights:
https://iprice.vn/insights/mapofecommerce/en/.
“Vietnam,” last modified 2017, retrieved from ECommerce IQ: https://ecommerceiq.asia/topecommerce-sites-vietnam/

multipurpose function both for economic and
non-economic activities. Finally, based on these
criteria, the dataset could be summarized as
Table 1. The following step is analyzing actors’
imagination of Southeast Asia by examining the
brand they use to market their products using
Cayla and Eckhardt’s indicator explained earlier.
This includes how actors deterritorialize and
describe their imagined community. The last
step is analyzing actors’ transaction. In terms of
the durability of the transaction, this paper uses
the distribution of branches or representative
offices as its parameter. According to regime
theory,
institutionalized
cooperation
demonstrates long term commitment, and thus
the presence of branches or representative
offices demonstrates long term commitment of
transaction in the region. However, this does not
necessarily mean that the absence of the
institution implies no transaction. Many ecommerce actors offer shipping services across
regional countries, which even though could be
a testing-the-water step before deciding to open
branches or representative offices in the future,
could at the moment demonstrate their shortterm commitment of transaction in the region. In
terms of the area of transaction, this paper uses
the scope of exchanges as its parameter. This
includes goods, services; investment, capital,
and skilled labor with the more areas of
exchanges demonstrate greater transaction that
could be potentially translated into greater
integration particularly if these areas are in line
with those prioritized by the ASEAN
integration. Last, in terms of value, this paper
uses company value or identity as its parameter.
The transaction has a greater social impact on
regional integration if it is based on a common
value. Therefore, the compatibility between
company value or identity with those promoted
by ASEAN and the consumers demonstrate
stronger impacts on regional integration.

171 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

Figure 1. Model Explaining Social Impacts of E-Commerce to Regional Integration
Deterritorialization
Imagination

Brands
Description of
imagined community

E-Commerce
Transaction

Regional
Integration

Areas

Durability
Values

Table 1. List of Major E-Commerce Players in Southeast Asia
Indonesia
 Lazada
 Tokopedia
 Elevenia
 Bukalapak
 Blibli
Brunei Darussalam
 QQestore
 DHGate
 Zalora
 Fashion Valet
 Aliexpress

Malaysia
 Lazada
 11street
 Lelong
 Shopee
 Zalora
Vietnam
 Lazada
 The Gioi Dong
 Sendo
 Tiki
 Vat Gia

Singapore
 Qoo10
 Lazada
 Carousell
 Zalora
 Ezbuy
Cambodia
 Glad Market
 Shope165
 Mall855
 Maiomall
 Khmer24

The State of E-Commerce in Southeast Asia
The phenomenon of E-Commerce in Southeast
Asia is relatively new compared to other more
developed regions. Even in the traditional
economy, Southeast Asian economy is often
overshadowed by its rapidly developed
neighboring region of East Asia which is now
also becoming the new center of gravity for the
global economy. As well-described in a flying
geese model, Southeast Asian countries only
began their economic reform after and partly as

Thailand
 Lazada
 11street
 Shopee
 Chilindo
 NotebookSPEC
Laos
 Yula.la
 Bydala
 Bestbuy



The Philippines
 Lazada
 Zalora
 Shopee
 Ebay
 Beauty MNL
Myanmar
 Shop.com.mm
 Shwe99
 Onekyat
 Zawgyinmart
 MyanmarcarsDB

a spillover effect of the economic development
in East Asia. Therefore, the stage of economic
development in the region is lagging behind its
neighbour and this also explains why investors
overlook at Southeast Asian economy compared
to that of East Asia. Parallel to this, the growth
of e-commerce in the region as a form of a more
developed economic activity which requires
advanced technology infrastructure is also
lagging behind.

172 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

However, there are several reasons why
e-commerce eventually found its breeding
ground in Southeast Asia and make the region
the fastest-growing region for e-commerce. First
of all, market saturation in East Asia pushes
investors to expand their market outside the
region in order to leap more profit. The absence
of significant players in the region makes
Southeast Asia an “untapped market” for these
investors.23 Moreover, secondly at the regional
level, ASEAN is pushing regional economic
integration which results in a huge market
creation of an estimated 630 million people or
greater than the EU. The economic integration
under the umbrella of the AEC also eases market
regulations and other trade barriers among
member countries which in the past often hinder
investors to invest their money in the region.
This becomes even more attractive with the fact
at the grassroot level that the number of the
middle-class population grows significantly in
all Southeast Asian countries and the percentage
of young population overwhelmingly dominate
the population pyramid accounting for two-third
of the total population. 24 The combination of
these two factors implies that the market
potential for e-commerce, that is the number of
the population having purchasing power and
knowledge in conducting e-commerce activity,
is more than significant and will continue to
grow in the future. Finally, all this development
is enhanced with the rapid internet and mobile
penetration as the minimum technology
infrastructure for e-commerce in which roughly
34% of the total population in the region is now
connected to the internet.25
With all these mutually reinforcing
factors, various e-commerce actors began to
“Overview of e-commerce in Southeast Asia”,
ASEANup
24
Ibid.
25
Competition Commission Singapore, Handbook on
E-Commerce and Competition in ASEAN.
23

flood the region, small portion in the form of
global actors expanding their reach to the region
while the bigger portion in the form of local
startup companies. There are several unique
characteristics of these e-commerce actors in the
region. First, the global actors participating in
regional competition are very limited. Amazon
as the US-based e-commerce giant that has
traditionally dominated global wholesale
marketspace has not yet set their feet in the
region, leaving the region dominated by the
Chinese leading wholesale platform, the Alibaba
Group. Other global actors such as eBay or
11Street, even though presents in several
Southeast Asian states only play minor roles in
each Southeast Asian country. This picture, on
the one hand, reflects the reluctance of the
global actors in the nascent market of the region.
On the other hand, this reflects the political
economy of the region where it witnesses the
decline of the US power and the rise of China’s
hegemonic power. Secondly, the minor role of
these global actors, coupled with the regional
context that is heterogeneous in a topographical
landscape, rich in culture, and diverse in the
level of economic development makes a one-forall regional strategy difficult.26 This also
explains why no global players dominate and
play a significant role in each country in the
region. As mentioned earlier, even though
Alibaba is the biggest actor in the region, it
could not dominate or even lead the domestic
market of each Southeast Asian country. This, at
the same time, also explains the rise of small
local startups companies which interestingly
dominate the market of each member country.
Some examples are Tokopedia in Indonesia,
Lelong in Malaysia, or Carousell in Singapore.
Only several companies could expand beyond
national boundaries, such as Lazada, Qoo10,
Zalora, and Shopee. Lazada deserves special
mention as perhaps it is the only actor that has a
26

Econsultancy, State of Ecommerce in Southeast
Asia.

173 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

regional vision and, in practice, has become the
biggest and only local e-commerce actor in the
region. Interestingly, the third uniqueness of the
e-commerce phenomenon in the region is that
most of these local actors are backed by a small
number of foreign venture capitals such as
Rocket Internet, Alibaba, and Ardent Capital.
Alibaba is not only the biggest global actor in
the region with its own brand Aliexpress, but it
is also the main investor in Lazada and several
other local startups, making the seemingly
competitive market becomes oligopolistic in
nature. Last but not least, e-commerce in
Southeast Asia is also unique in terms of the
distribution of these actors. While it is not
surprising to see more international actors in the
ASEAN 6 countries, the distribution of local ecommerce actors is more even in almost all
Southeast Asian countries. However, two are
outstanding. Laos is the least developed country
in e-commerce judging from the few numbers of
e-commerce players in the country, while
Myanmar which many would consider as the
latest comer in e-commerce have more players
in its market.
The Imagination of E-Commerce Actors and
Regional Integration
The increasing number of e-commerce actors
flooding Southeast Asian market together with
their unique characteristics makes it important to
question their impact to regional integration
which, as mentioned earlier, could be seen from
their imagination of the region: whether they
have a regional vision and whether this vision is
in line with that of promoted by ASEAN. Based
on the list of key e-commerce actors included in
this research, there are two main findings. First,
in terms of deterritorialization or how actors
promote their imagined community by shifting
consumers’ imagination from their home
territory, it appears that there are variations of
levels at which e-commerce actors want to build

their imagined community. It means not all of
them to have a regional vision or imagination of
Southeast
Asia
as
their
marketplace.
International actors, such as Ebay, Aliexpress,
and 11Street unquestionably locate their
imagined marketplace at the international level.
Ebay, for example, clearly mentions its brand to
be “the world’s favorite destination for
discovering great value and unique selection”. 27
Aliexpress and 11Street indicate their globalness by mentioning no reference of level in their
brand. Aliexpress markets itself under the
tagline “smarter shopping, better living”, while
11Street markets itself as “the best way to KShopping”.28 Both, however, mention their
customer and delivery to include those across
countries.
In the other extreme, the majority of
local actors have defined their market niche
within each domestic market. Bukalapak and
Blibli in Indonesia brand themselves as “the
trusted site for online shopping in Indonesia”
and “the pioneer of the biggest and the most
complete
online
mall
in
Indonesia”
respectively. 29 In Malaysia, the biggest local
actor, Lelong, develops its brand as “the largest
online shopping marketplace in Malaysia”. 30 In
Thailand, NoteSPEC describes itself as “the #1
notebook community in Thailand”.31 Beauty
“Our Company,” ebay, retrieved from ebay:
https://www.ebayinc.com/our-company/
28
“Aliexpress,” Aliexpress, retrieved from
Aliexpress: https://www.aliexpress.com. “About
11Street,” 11Street, retrieved from 11Street:
http://global.11st.co.kr/en/browsing/EventPromotion.
tmall?method=getEventPromotion&dispObjNo=9885
614
29
“Tentang Bukalapak,” Bukalapak, retrieved from
Bukalapak: https://www.bukalapak.com/about.
“Tentang Blibli.com,” Blibli, retrieved from
Blibli.com: https://www.blibli.com/panduanbelanja#hash-side-tentangBlibli
30
“Lelong,” Lelong, retrieved from Lelong:
https://www.lelong.com.my
31
“NoteSPEC,” NoteSPEC, retrieved from
NoteSPEC: https://notebookspec.com
27

174 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

MNL in the Philippines appeals its potential
consumer community with its brand “finally one
for the Filipina”, meanwhile Vat Gia in Vietnam
uses the brand “the leading e-commerce portal in
Vietnam”. 32 In Cambodia, all the listed actors
identify their national imagination with brands
such as “Cambodia’s local online marketplace”,
“one of the leading and largest online products
in Cambodia”, “the no.1 online shopping
marketplace in Cambodia, and “buy and sell
everything in Cambodia”. 33 Yula.la and Bydala
in Laos both use national brands with the tagline
“free online classifieds to buy and sell your stuff
in Laos” and “online shopping in Laos”. 34 Last,
in Myanmar, the listed companies use brands
such as “online Myanmar shopping store”,
“Myanmar buy and sell”, “e-commerce business
in Myanmar”, and “used cars, new cars, buy and
sell in Myanmar”.35 Most of these actors not
only limit their brands within their imagined
national boundaries but also use national
language as their main language for
communication. Only small numbers of the
listed e-commerce actors have explicit global
visions, such as Tokopedia in Indonesia, Ezbuy
in Singapore, DHgate in Brunei Darussalam, and
32

MNL, B. (n.d.). About Us. Retrieved from
BeautyMNL: https://beautymnl.com/company. “Vat
Gia,” Vat Gia, retrieved from Vat Gia:
https://www.vatgia.com/home/
33
“About Glad Market,” Glad Market, retrieved from
Glad Market:
http://www.gladmarket.com/about.html. “Mall855,”
Mall855, retrieved from Mall855:
http://www.mall855.com. “MAIO Mall,” MAIO
Mall, retrieved from MAIO Mall:
http://www.maiomall.com. “Khmer24,” Khmer24,
retrieved from Khmer24: https://www.khmer24.com
34
“Yula.la,” Yula.la Retrieved from Yula.la:
http://yula.la. “Bydala,” Bydala, retrieved from
Bydala: http://bydala.com
35
“Shwe99,” Shwe99, retrieved from Shwe99:
http://www.shwe99.com. “One Kyat,” One Kyat,
retrieved from One Kyat: https://www.onekyat.com.
“About Us,” Zwagyin Mart, retrieved from Zwagyin
Mart: http://www.zawgyimart.com/about. “CarsDB,”
CardDB, retrieved from CarsDB:
https://www.carsdb.com/en

Sendo in Vietnam. 36 Similarly, only small
numbers of them have regional visions with
shop.com.mm and Qoo10 places their imagined
community.37 Thus, from the list of the local ecommerce actors, none have an imagination of
Southeast Asia as their marketplace.
It is these gaps that three listed regional
e-commerce actors such as Lazada, Zalora, and
Shopee try to fill – the untapped market of
Southeast Asia. From the beginning, the three
actors are designed to focus on Southeast Asian
market with Lazada identifies itself as
“Southeast Asia’s No.1 Online Shopping and
Selling Destination”, Zalora as “Southeast
Asia’s largest online fashion platform”, and
Shopee as “the first mobile platform in
Southeast Asia”.38 Similar with the discussion in
earlier section, the three of them decide to focus
on Southeast Asia because of the future potential
of the region in terms of the increasing middle
class and information technology infrastructure.
On the one hand, this is encouraging and
positive for regional integration because it
would help to strengthen shared imagination as
part of Southeast Asia among people and seller
community within each network. In fact, each
company has its own seller center and nurture
their seller community online through social
media and offline through conferences or

“About,” Tokopedia, retrieved from Tokopedia:
https://www.tokopedia.com/about. “Ezbuy,” Ezbuy,
retrieved from Ezbuy: https://ezbuy.sg. “ DHGate,”
DHgate, retrieved from DHGate:
https://www.dhgate.com. “Sendo,” Sendo, retrieved
from Sendo: https://www.sendo.vn
37
“About Us,” Daraz, Retrieved from Daraz:
https://www.daraz.pk/about/. “About Qoo10 &
Giosis,” Qoo10, retrieved from Qoo10:
https://www.qoo10.com/gmkt.inc/Company/AboutCo
mpany.aspx
38
“Lazada,” Lazada, retrieved from Lazada:
http://lazada.co.id. “About Zalora,” Zalora, retrieved
from Zalora: https://www.zalora.com.my/about/.
“Shopee,” Shopee, retrieved from Shopee:
http://shopee.co.id
36

175 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

gatherings. On the other hand, this might not
have significant impacts because, as explained
earlier, it is difficult to apply a one-for-all
strategy in all Southeast Asian countries given
the heterogeneity of the Southeast Asian
landscape. As a result, regional actors such as
Lazada will have a subsidiary in each country
that is independent enough from the regional
parent and local enough to meet the domestic
market. The consequence is that these regional
actors are, then, not different from local actors
with transactions and community engagement
also limited to the national boundary. Lazada,
for examples, has more seller gatherings at the
national level rather than at the regional level. In
this circumstance, actors’ imagination on
Southeast Asia as a region is undermined by
their country-specific strategy which in the end
reduces their impact to regional integration as
well.
But, it is still worth understanding which
section of community that these regional
companies are trying to build or, as stated in the
second aspect, how actors describe their
imagined community, because only by
answering this question that it will be clearer
which segment of Southeast Asian community
that has potentially greater sense of belonging
due to greater exposure and interactions with
their counterparts across the region. From the
three regional companies that locate their
imagined community in Southeast Asia, the
three actors, similar with the majority of other
online marketplaces, target wider audience who
are actively using mobile phone or desktop for
their daily activities.39 Shopee, in particular,
deliberately focus on their mobile market, given

mobile phone users in the region outnumbered
the desktop users. In fact, Shopee’s vision is to
fill the gap in the absence of big players in the
mobile platform in the region. In other words,
this trend implies that e-commerce actors tend to
target younger and technology-savvy population,
with Zalora specifically focus on 20-35 years old
audience. 40 Given its more specific focus on
fashion, Zalora also limits its target market to
the women and middle-income population who
enjoy online shopping.41 In terms of the seller
community, both Lazada and Shopee target
young entrepreneurs and startup companies to
join their market. In conclusion, while no survey
has been conducted on the ASEAN Awareness
across market segmentation, the fact that these
actors
engage
more
with
younger,
technologically literate, and middle-income
population implies that these segments of the
community have better information and
exposure with products and seller from other
countries. This segmented market leads to the
question about the inclusivity of e-commerce.
While the engagement in this segment is
beneficial to enhance the company’s profit, this
could discourage the integration of the region in
terms of societal cohesiveness. E-commerce will
be seen as ‘the upper-middle-class business’ in
the region. The localization strategy of these
regional companies also means that more
interaction remains at the national level. From
the imagination of e-commerce actors, finally, it
can be concluded that it has no significant
impact on regional integration in Southeast Asia.

39

Maulana, Y., CEO Shopee: Kami Ingin
Masyarakat Semakin Memahami e-commerce, 13
February 2017, retrieved from Swa:
https://swa.co.id/swa/ceo-interview/ceo-shopeekami-ingin-masyarakat-semakin-memahami-ecommerce

40

Marketeers Editor, Strategi Zalora Kembangkan
Bisnis di Indonesia, 27 September 2015, retrieved
from Marketeers: http://marketeers.com/strategizalora-kembangkan-bisnis-di-indonesia/
41
Ibid.

176 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

The Transaction of E-Commerce Actors and
Regional Integration
Southeast Asia is one of the regions with
significant growth of the online market. Since
2015, the number of internet users in the six
largest economies in ASEAN has risen from 244
million to 283 million, and this growth is
projected to continue at an annual rate of 17.7%
until 2022. 42 Google and Temasek Holding
projected that Southeast Asia e-commerce sales
could reach U$88 billion by 2025.43 However,
beyond the promising numbers, there are several
qualitative aspects of a transaction that warrant
closer analysis. This paper uses durability, area
and value as the elements of a transaction by
using the dataset in Table 2.
a. Durability
The durability of a transaction is portrayed by
the presence of the branch offices of the market
place in the region. Given the borderless nature
and liquidity of the e-commerce market, the
existence of a physical office is somehow not
necessarily
important.
However,
the
establishment of a representative office will
represent commitment; build a sense of
belonging, in addition to supporting practical
and bureaucratic purposes. From the three levels
of the market place, global players such as Ebay
open their local office in selected countries.
Ebay has a local office in Thailand and plans to
open another one in Jakarta, Indonesia
(Freischland 2016), while Alibaba just opened
its branch in Singapore. 11Street has offices in
Thailand and Malaysia. The “regional”
marketplace such as Lazada, Zalora and Shopee
have more branches than their global

42

Competition Commission Singapore, Handbook on
E-Commerce and Competition in ASEAN.
43
“Amazon, Alibaba Tussle in South-east Asia”,
Straitimes, retrieved from 24 October 2017,
https://www.straitstimes.com/business/amazonalibaba-tussle-in-south-east-asia

competitors. Lazada puts grips in ASEAN 6
countries: Singapore, Malaysia, Thailand,
Philippines, Indonesia and Vietnam. Zalora
opens its branches in Malaysia, Singapore,
Indonesia, Philippines and Brunei. Shopee, the
newest player that identifies itself as the leading
e-commerce platform in Greater Southeast Asia,
looks aggressive to open branches also in
ASEAN 6 countries. The national marketplace
seems reluctant to open branches outside their
home country. It is reasonable because
establishing foreign branch equals to additional
operational cost.
From the establishment of a branch, it
can be seen that the regional marketplaces are
eyeing ASEAN 6 countries due to their lucrative
market with a significant number of the middle
class and impressive economic growth. The
absence of a local office of the regional
marketplace in the other three countries:
Cambodia, Laos and Myanmar imply the
segregation of the e-commerce market in this
region. These three countries are potential to be
the destination of e-commerce business but are
often hampered by the lack of infrastructure.

177 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

Table 2. Transaction of E-Commerce in Southeast Asia
Distribution

Major E Commerce Actors
ID
International

MY

SG

TH

PH

BN

VN

KH

LA

MY

Asia

Global

Ebay
Aliexpress
11Street

Regional

Lazada
Zalora
Shopee

National

Tokopedia
Elevenia
Bukalapak
Blibli
Lelong
Qoo10
Carousell
Ezbuy
Chilindo
NotebookSPE
C
Beauty MNL
QQestore
DHGate
Fashion Valet
The Gioi Dong
Sendo
Tiki
Vat Gia
Glad Market
Shope165
Mall855
Maiomall
Khmer24
Yula.la
Bydala
Bestbuy
Shop.com.mm
Shwe99
Onekyat
Zawgyinmart
Myanmarcars
DB

b. Area
This paper utilizes the scope of the transaction to
analyze the aspect of the area. The scope of the

transaction can cover a wide range of aspect
from goods and service, capital, investment and
skilled labor. Goods which are traded among

178 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

marketplaces in this region are dominated by
international brand and local brand. There is no
reliable figure to depict the variety and numbers
of goods produced by Southeast Asian countries
that are sold and bought within the region by the
regional marketplace. The intra-regional
commercial is also hampered by several hurdles:
the cost of courier/expedition, inter-country
tax/custom, and online payment.

In terms of skilled labor in the ecommerce business, the scope of exchange is
dynamic. However, this is not a reflection of the
scope of exchange in Southeast Asia because the
skilled labor is dominated by IT professionals
whose mobility is beyond the regional sphere.
Lastly, in investment and capital realm, there are
several Southeast Asia based venture capitals,
but the global player also joins the market such
as Alibaba $1 billion investment to Lazada.

Figure 3. Five Largest Southeast Asia Based Venture Capital Investors by Assets Under Management
Investor
GIC
OCBC Bank
United Overseas Bank
Temasek Holdings
Employees’ Provident
Fund

Type
Sovereign Wealth Fund
Bank
Bank
Sovereign Wealth Fund
Public Pension Fund

Location
Singapore
Singapore
Singapore
Singapore
Malaysia

Assets
350
291
241
198
170

Source : Preqin Venture Capital Online, 2016 (http://docs.preqin.com/reports/Preqin-Venture-Capital-SoutheastAsia-September-2016.pdf 2016)

Figure 4. Five Largest Southeast Asia-based Venture Capital Fund Managers by Total Capital Raised in
the Last 10 Years Firm Location Estimated
Firm

Location

Estimated Dry Powder ($mn)

Axiom Asia Private
Capital
L Capital Asia
TAEL
Gateway
CX Capital

Singapore

896

Total Capital Raised in Last 10 years
($mn)
2.931

Singapore
Singapore
Singapore
Singapore

72
336
476
-

1,642
1.251
555
515

Source : Preqin Venture Capital Online,2016

c. Value
Value or identity of a company, in this case, the
marketplace, is another important aspect to
analyze the transaction aspect of e-commerce in
Southeast Asia. The compatibility between
company value and ASEAN value will be a
positive factor to support regional integration.
This article utilizes selected ASEAN Economic
Community pillars as ASEAN values.
Competitive Economic Region and Equitable
Economic Development could be used as values.

Consumer protection is one of the aspects of the
competitive economic region while the
development of SMEs is the backbone of
equitable economic development. Consumer
protection is a very important aspect of ecommerce due to its virtual nature. Shopee uses
tagline “Shopee Guarantee” to protect users
(buyer and seller by withholding the payment to
sellers until the buyers confirm receipt of the

179 Sukmawani Bela Pertiwi, Amalia Sustikarini, dan Paramitaningrum | The Impacts of E-Commerce to Regional Integration
in Southeast Asia

orders.44 Lazada and Zalora mention consumer
protection as their concern even though they do
not make any specific campaign or tagline. In
supporting Small and Medium Enterprises as the
element of equitable and inclusive trade, Lazada
launched #EveryoneCanSell campaign to help
local SMEs to grow their online business by
forming a strategic alliance with Lazada. 45
Shopee is also actively supporting SMEs in their
supply chain. They make a video in youtube to
show how Shopee empowers SMEs in
Indonesia, especially by offering free delivery
cost and course on online trade. The aspect of
company value can give more benefit to the
region if it can steadily be maintained, especially
the integration of SMEs, given the fact that
SMEs are the major economic player in the
region.
In sum, the several aspects of the transaction
(durability, area and value) do not seem to
positively correlate to regional integration. The
establishment of the branch only evident in the
top six ASEAN countries, while the inter-region
transaction of trade is hampered by multiple
problems. The most common feature of
transaction aspect in e-commerce that it is
mostly available in either international or local
domain and not at the regional level. The strong
emphasis of the e-commerce on the countryspecific strategy and the preference of the
market penetration to the ASEAN six countries,
coupled by the focus on the upper-middle class
consumer would potentially widen the
development gap between ASEAN member

countries and income gap within ASEAN’s
member countries. These gaps are definitely not
a driving force for the integration of the region.

Conclusion
This research demonstrates two important
findings. First, trade does not always correlate
positively with regional integration. Second, the
impact of trade on regional integration is not
limited to the economic aspect but it also has a
social impact. In the case of e-commerce in
Southeast Asia, it appears that the social impact
of e-commerce to regional integration could be
seen from the imagination of e-commerce actors
of its marketplace and its transactions within the
region. From the former, this research found that
most of the e-commerce actors imagine their
marketplace well within their own national
boundary. It means that their imagination does
not contribute significantly to increasing
regional sense of belonging among its
community. From the later, this research found
that most of the e-commerce actors engage in
more intense transactions in the ASEAN 6
countries (Indonesia, Singapore, Malaysia,
Thailand, the Philippines, and Vietnam)
compared to the rest. This poses the risk of
dividing the region as the exposure and
interaction is greater in the former rather than
the later.

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