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Barriers to Digital Adoption for Indonesian Micro and Small Enterprises

Adi Ahdiat 20/02/2026 10:47 WIB

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Some micro-small business owners in Indonesia are still facing challenges in adopting digital technology. The main barriers are limited access to devices and high internet costs.

Barriers to Digital Adoption for Indonesian Micro and Small Enterprises (2024)

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Barriers to Digital Adoption for Indonesian Micro and Small Enterprises (2024)

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Digital technology can assist businesses in the procurement, marketing, sales, transaction, payment, inventory and financial management processes.

However, some business operators in Indonesia still face challenges in adopting such technology.

This is evident from the report "A Study of National Digital Adoption Index for Indonesia UMSEs (2024)" released by Bank Indonesia (BI).

The BI research team surveyed 10,142 respondents from ultra-micro, micro, and small-scale business units across 34 Indonesian provinces.

One of the findings is that 27.9% of respondents encountered difficulties in adopting digital technology due to device limitations.

Then, 21.46% were constrained by high internet costs, and 17.47% were hindered by regulations on digital platforms such as Shopee, Tokopedia, and so on.

There were also 16.76% who faced human resource limitations in adopting digital technology, and 16.38% were hampered by poor internet connectivity.

"These barriers including technological limitations, internet costs, regulatory issues, staffing shortages, and connectivity challenges highlight essential areas that require focus to enable more seamless and accessible digital adoption for businesses," said the BI research team in their report.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Barriers to Digital Adoption for Indonesian Micro and Small Enterprises

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