Drivers of E-Commerce Success in Java Island: Implications for Indonesia's Digital Economy
(1) Universitas Jambi
(2) Universitas Dinamika Bangsa
(3) Universitas Jambi
(4) Universitas Jambi
(5) Universitas Negeri Surabaya
(*) Corresponding Author
Abstract
E-commerce in Indonesia, particularly on Java Island, has shown rapid development, contributing significantly to national digital transactions. This study aims to analyze the factors influencing the growth of e-commerce on Java Island during the 2015–2023 period. The research employs a panel data regression model, examining variables such as communication expenditure, population size, the number of BTS towers, mobile phone ownership, and the number of e-commerce actors. The key findings reveal that communication expenditure, mobile phone ownership, and the number of e-commerce actors significantly influence digital transactions. These findings underscore the importance of enhancing digital infrastructure, improving internet access, and empowering digital MSMEs to support the growth of e-commerce in Indonesia. Promoting e-commerce growth by improving internet infrastructure in areas with poor connectivity is a crucial first step the government can take to enhance internet access equity across Java Island.
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DOI: http://dx.doi.org/10.33019/ijbe.v9i3.1124
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