IDEAS home Printed from https://ideas.repec.org/p/idn/wpaper/wp122024.html
   My bibliography  Save this paper

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

Author

Listed:
  • Yoga Affandi

    (Bank Indonesia)

  • MHA Ridhwan

    (Bank Indonesia)

  • Cahya Mega Panji Santosa

    (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.

Suggested Citation

  • Yoga Affandi & MHA Ridhwan & Cahya Mega Panji Santosa, 2024. "A STUDY OF NATIONAL DIGITAL ADOPTION INDEX FOR INDONESIAN UMSEs (EXPANSION)," Working Papers WP/12/2024, Bank Indonesia.
    • Handle: RePEc:idn:wpaper:wp122024
    as

    Download full text from publisher

    File URL: http://publication-bi.org/repec/idn/wpaper/WP122024.pdf
    File Function: First version, 2024
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:wpaper:wp122024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing The email address of this maintainer does not seem to be valid anymore. Please ask Lutzardo Tobing to update the entry or send us the correct address or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.