A STUDY OF NATIONAL DIGITAL ADOPTION INDEX FOR INDONESIAN UMSEs (EXPANSION)

Yoga Affandi, Mha Ridhwan and Cahya Mega Panji Santosa
Additional contact information
Yoga Affandi: Bank Indonesia
Mha Ridhwan: Bank Indonesia
Cahya Mega Panji Santosa: Bank Indonesia

No WP/12/2024, Working Papers from Bank Indonesia

Abstract: This study examines the factors driving digital adoption among ultra-micro, micro, and small enterprises (UMSEs) in Indonesia, using data from a survey of 10,142 UMSEs across 34 provinces. A comprehensive Digital Adoption Index was developed to assess adoption levels and their regional variations, focusing on key business processes, including e-procurement, POS systems, e-marketing, e-commerce, and digital payments. Results indicate that digital adoption is significantly influenced by owner demographics, firm characteristics, business environment, infrastructure quality, and cultural factors, contributing to disparities in adoption across regions. The findings suggest that digital adoption positively impacts UMSEs’ business performance, business innovation, financial literacy and financial inclusion, highlighting the potential for digital tools to enhance financial knowledge and access within this sector. This research provides actionable insights for policy development aimed at supporting digital transformation among UMSEs, particularly in areas with low adoption levels.

Keywords: Digital Adoption; Ultra-Micro; Micro and Small Enterprises; Business Performance; Business Innovation; Financial Literacy; Financial Inclusion (search for similar items in EconPapers)
Pages: 47 pages
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://publication-bi.org/repec/idn/wpaper/WP122024.pdf First version, 2024 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:wpaper:wp122024

Access Statistics for this paper

More papers in Working Papers from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().