This is a Comparison of Digital Adoption Rates of MSMEs in Indonesia.

Technology & Telecommunications

Cindy Mutia Annur 20/11/2022 09:00 WIB

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Internet Usage Index by Workers/MSMEs Based on Region (2022)

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According to the East Ventures Digital Competitiveness Index (EV-DCI) 2022 report (EV-DCI), micro, small, and medium enterprises (MSMEs) on the island of Java have the highest national rate of digital adoption.

Digital adoption in this report refers to the level of internet use by workers or MSMEs for business purposes via websites or e-commerce platforms.

Based on the EV-DCI assessment, the digital adoption score among Java Island's workforce/MSMEs reached 49 out of 100 points. This figure is the highest compared to other regions.

Bali and Nusa Tenggara rank second with an index score of 22 points, followed by Sumatra with 21 points, Kalimantan with 19 points, Sulawesi with 14 points, while Maluku and Papua received the lowest score of 10 points.

"Indonesia's unique geographical conditions pose a challenge to providing competent internet connectivity for MSMEs spread throughout the country. As a result, there are obstacles to digital adoption, especially for MSMEs in less developed regions of Indonesia," said East Ventures in its report.

"There is still a significant gap between Jakarta and other provinces in terms of utilizing online platforms for sales," it continued.

The EV-DCI measures digital competitiveness across all Indonesian provinces based on nine major indicator pillars: human resource conditions, information and communication technology (ICT) usage, ICT expenditure, economy, entrepreneurship and productivity, employment, infrastructure, finance, and regional government regulation and capacity.

The EV-DCI then compiles these indicators into a 0-100 score system. The higher the score, the more competitive a region's digital competitiveness is considered.

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."