From Farm to Online Market: Analyzing E-Commerce Adoption Trends and Drivers for Indonesian Farmers

Alan Ray Farandy (), Apri Laila Sayekti () and Rika Reviza Rachmawati ()
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Alan Ray Farandy: National Research and Innovation Agency (BRIN), Research Center for Behavioral and Circular Economics
Apri Laila Sayekti: National Research and Innovation Agency (BRIN), Research Center for Behavioral and Circular Economics
Rika Reviza Rachmawati: National Research and Innovation Agency (BRIN), Research Center for Behavioral and Circular Economics

Chapter Chapter 4 in E-Commerce for Inclusive Rural and Agricultural Development, 2027, pp 101-132 from Springer

Abstract: Abstract In the era of the digital revolution, which is fundamentally reshaping livelihoods and commerce, e-commerce offers unprecedented opportunities, particularly for rural populations. Despite e-commerce’s potential to enhance market access and profit, these benefits are unrealized due to limited Information and Communication Technology (ICT) infrastructure, high costs, low digital literacy, and socio-economic inequalities in rural Indonesia. In this paper, we identify trends in e-commerce adoption, spatial disparities, and the infrastructural and socio-economic barriers to its adoption among farmers in Indonesia. This study uses data from three waves (2019, 2021, 2024) of the National Socio-economic Survey, combined with Village Potential Statistics, to conduct descriptive, spatial, and inferential analyses of e-commerce adoption trends and their determinants. Our findings indicate that, despite a significant increase in internet penetration among farmers over the past 5 years, e-commerce participation remains limited for both purchasing and selling purposes. While there has been continuous improvement and expansion of higher-quality internet infrastructure across Indonesian agricultural villages, persistent regional disparities endure. Furthermore, e-commerce adoption exhibits disparities across gender, generation, and education levels. Education consistently predicts adoption, underscoring the critical importance of digital skills. We find that the quality of internet infrastructure, beyond mere presence, has a significant impact on engagement. Interventions to improve internet infrastructure and bridge the digital literacy divide are necessary to maximize the opportunities of e-commerce among farmers in Indonesia.

Keywords: E-commerce; Agricultural development; Digital divide; Indonesia (search for similar items in EconPapers)
Date: 2027
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-981-92-5237-4_4

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DOI: 10.1007/978-981-92-5237-4_4

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