Uncovering the Role of Internet Access in Driving E-Commerce Technology Adoption: Insights from Indonesia’s BPS Data (2021–2023)

Abstract

This study examines the role of internet access in shaping the adoption of e-commerce technologies among Indonesian micro, small, and medium enterprises (MSMEs). It draws on secondary data from Indonesia’s Central Bureau of Statistics (BPS) covering 2021 to 2023. Using a descriptive-comparative method combined with visual trend analysis, the analysis reveals significant disparities in e-commerce technology adoption across different business functions. Early adoption efforts were focused mainly on customer-facing processes (e.g., online sales), whereas internal operations—such as obtaining funding and internal communications—lagged far behind. By 2023, overall digital adoption had accelerated substantially, especially in sales-related activities. Furthermore, the number of QRIS (Quick Response Code Indonesian Standard) transactions surged from 374 million in 2021 to over 6.2 billion by 2024, underscoring the rapid digital transformation underway in the sector. These findings align with the Diffusion of Innovation theory and the Technology-Organization-Environment (TOE) framework, highlighting the importance of organizational readiness and the perceived benefits of new technologies. Overall, this research contributes to the discourse on inclusive digital transformation in developing economies and advocates for policies that support the digitalization of internal business processes rather than focusing solely on external, customer- facing applications.