The Use of Internet Access by MSMEs in Remote Villages in Indonesia

A survey by the Indonesian Internet Service Providers Association (APJII) reveals diverse ways in which people in underdeveloped villages utilize internet access to develop small, micro, and medium enterprises (SMEs).

The majority, or 46.4% of respondents, used the internet for online promotion of their SME products.

Furthermore, 21% used the internet to access online market information and trends, and 12.3% sold their products through e-commerce.

Some respondents in remote villages also collaborated with other businesses, both local and outside the region, and participated in online business management and marketing training. Both were reported by 9.4% of respondents.

However, the APJII survey also documented several challenges faced in utilizing internet access to support SME growth in underdeveloped villages.

A recorded 33.3% of respondents felt a lack of public knowledge regarding internet technology. This was followed by 31.7% who considered internet access slow, and 14.2% who cited a lack of supporting infrastructure such as training centers.

This APJII survey involved 1,950 respondents from 64 underdeveloped areas spread across 17 provinces. Data collection was conducted from July to September 2024 through face-to-face and telephone interviews.

According to the Regulation of the Minister of Villages, Development of Disadvantaged Regions and Transmigration (Permendes-PDTT) Number 11 of 2020, a "disadvantaged area" is a district whose territory and community are less developed than other areas on a national scale.

59.23% of respondents were male and 40.77% were female. Respondents were dominated by millennials aged 28-43 years (40.10%), followed by Generation Z aged 12-27 years (34.36%), and Generation X aged 44-59 years (6.05%).

This survey used multiple-answer questions, allowing respondents to select more than one answer.