E-COMMERCE ADOPTION: A STUDY ON OPPORTUNITIES AND CHALLENGES IN INDONESIA

Abstract

E-business or e-commerce is generally defined as business activities that undertaken by using information and communication technology. Recent data indicates that e-business has been significantly important in Indonesia’s business and economy. For instance, internet users reached 82 million people or approximately 30% of the total population in Indonesia in 2014. However, these figures are considered relatively low compared to developed countries such as the USA, UK and Australia. Considering the penetration of e-business in Indonesia, it can be predicted that e-business will contribute significantly to the economy in the future. Economic integration such as ASEAN Economic Community will also increase e-business activities and technology engagements due to rapid growing trade among ASEAN countries. This article aims to explore issues and challenges of e-business in Indonesia’s economy. In particular, this article intends: (i) to explain the concept of e-business, (ii) to study the current position and potential benefits of e-business on the economy in Indonesia; and (ii) to examine the prospects and challenges of e-business in Indonesia. Among topics to be addressed in this article are e-business concepts, e-business platforms that are available in Indonesia, key challenges that are being faced by consumers undertaking  e-business,  services  and  opportunities  offered  by  e-business  to  producers,  distributors  and customers as well as prospects and challenges of e-business in Indonesia.

 Keywords: e-business, internet, ICT.