Indonesia Study Group
Date & time
E-commerce has been growing rapidly in the last few years thanks to the massive internet expansion in Indonesia. While there has been a lot of discussions on the supposed benefits from online trade, empirical studies are lacking. Using a dataset generated from a unique survey of 1100 firms, the study explores how the use of internet technology (and in particular e-commerce) affects market coverage, sales and profits, as well as the cost structure of businesses. The findings confirm that being online allows firms to improve their performance. On average, going online can improve sales by 12%, and smaller firms seem to gain more benefits than the bigger ones. This study also explores the difficulties that firms in Indonesia face in conducting online trading.
Yose Rizal Damuri, CSIS Jakarta