1. e-Commerce empowerment for SMEs
Onno W. Purbo
Independent IT Writer
Indonesia

2. References Industry& Trade Cooperative & SME Post & Telecomm
Statistical Bureau
MASTEL
APJII

3. Archive e-Discussion Mastel-e-commerce@egroups.com Ukmnet@egroups.com

4. Term of Reference
Life-long learning and the training of information and communications technology professionals
Skills retention strategies for trade administration agencies reliant on information and communications technology
Collaboration with the business/private sector on skills development
Development of skills required to assist APEC members to establish a more pro-competitive policy and regulatory environment
Development of skills standards to support e-commerce

5. Overview

6. Current Indonesia Situation
Population of 220 million people
90+ million labor force
Only 3-4 million univ. grads
IT penetration correlates to education level.

7. IT Infrastructure Condition
2.2 million PC
8 million lines (Telco’s “monopoly”).
~150 ISP (liberal / no monopoly)
Telecommunication Kiosk
1200+ Internet Café
Access point for 60-70% Indonesian users.
lines for connecting schools.
1.5 million Internet user
Double every year.
Hope to reach 20 million by 2004.

8. Business Structure
~40 Million Enterprises
>98% SMEs

9. Industry Structure (BPS-KOMPAS 21-08-2000)
Scale
No.Firms
No.Worker
Rp. Billion
Large-Med
22,997
4,214,957
264,270
Small
241,169
2,077,298
14,858
Household
2,501,735
4,075,763
11,312
Total
2,765,901
10,368,020
290,440

10. Focus on e-Impact

11. Identified Major Issues
Social & Cultural Aspects
Highly related to level of education.
National movement on IT literacy.
Enable the SMEs for high impact
Knowledge
Preferably in local language.
Human Resource
Teachers.
Infrastructure
Telecomm & Internet Access.
PC / Computers.

12. Basic Belief Mass of qualified Human Resource is the key of success.
IT Retention can only be maintained if:
Demand side - Enough carrots in marketplace for such IT knowledge.
Supply side - Abundant & accessible IT knowledge available at low & no cost.
Regulatory & policy framework – Make sure it can be implemented - self-finance & sustainable.
Language & number of literature would be the major barrier.

13. Challenges Simple policy & tech for high impact.
Small IT Mass (0.5% of population)
Low density:
Information access facilities.
Computer / PC
Telecommunication infrastructure.
Slow Distribution of Knowledge.

14. Example of Real Life Experiences
Wayan, Bali & Lombok
Share design with European Distribution.
Sells their craft & art over the Internet.
Anshori, Lampung
Butterfly cultivation
sell it at US$7 / cocoon.
Jerry, Bandung
Textile export
via B2B marketplace (mailing list).

15. Real Life Skill Needed for SMEs
Ability to Read & Write in English.
Limited knowledge of Internet
& Web
Knowledge of B2B Markerplace
mailing lists on the Internet
Access to Internet Café / Kiosk
~US$1 / hour (affordable for most people)
~US$5 / month ( only access).

16. Indonesian e-Environment

17. E-commerce Community Mastel-e-commerce@egroups.com
Indonesia Internet Business Community – I2BC
Indonesian SMEs network.

18. Indonesian Internet Activities
National IT Movement
Internet Café Association
Education Community
(vocational schools)
(rural islamic schools)
(private universities)
(digital library network)

20. Create Mass & Demand

21. Focus Tactical Activities
Focus on Mass Centers
Schools ~ 18 million students
Univ ~ 5 million students
Need only ~ lines for schools.
Internet & Telco Kiosk ~ 20-30M people
Simple policy – high impact.
Focus on simple EC mechanism
Substitute Telp, FAX with / VoIP.
Simple B2B community forum e.g. mailing list.
Use conventional payment systems.

22. Focus Tactical Activities
Build & Extend Regional Marketplace
Aceh & North Sumatra with Singapore or Malaysia.
North Sulawesi with Philippine.
Maluku & Papua with the Pacific.
Bali, Nusa Tenggara & Maluku with Australia
If possible automate the transaction of their activities, e.g. using EDI.

23. Brief Infrastructure Strategies

25. Internet Infrastructure
Liberalization of ISP ~150 license.
lines for educational sector
18 million potential internet users
Require low cost internet appliance.
Internet kiosk – self-finance
Contribute 60-70% current users
Require internet appliance / terminal.
Corporate user – self-finance

28. Brief Knowledge Strategies

30. The Actor Small Medium Business & Industry. ~80 million workforce.
30+ million business entities.
2.5+ million industries.

31. Capacity Building Multiplying Effect
Education Sector – ~20 million people.
Sustainable community-based telecenters.
Development Consultants / NGOs.

32. Real Example of Knowledge Tactical Aspects
Knowledge Management
Digital Library
One way knowledge dissemination
Two ways interactions

33. Knowledge Management Manual Translation
Public domain IT Knowledge in CD-ROM.
Digital Library
Indonesia Digital Library Network
Indonesia Cyber Library Society –

34. Knowledge Generation
Encourage writers to put & publish their work in public.

35. One Way Dissemination ~20 dedicated IT magazines nationally.
Reaches couple 100th thousands people.
IT column in most newspapers.
Reaches millions people.
Public Domain Knowledge on Free CD-ROM.
>100 title IT books in Indonesian
Need more dedicated IT writers.
MoST – Technology Kiosk.

36. Two Way Interactions Egroups.com mailing lists. Seminar / Workshop
Millenium Internet Roadshow – 15 cities
2-6 Internet Seminars / Week in various cities.
Min. 2x / week – Internet Radio Talkshow
Training for trainers / IT evangelists.

37. Summary Focus on SME Educational Sector as strategic entry.
Proposed Major Strategies:
Knowledge generation in local language
Incentive for IT writer.
Training for trainers / IT evangelists.
Create knowledge infrastructure
Adopt simple e-commerce mechanisms. Focus on maximizing economical impact.

38. Thank you