e-Commerceempowerment for SMEs

Onno W. PurboIndependent IT Writer

Onno@indo.net.idIndonesia

References Industry& Trade Cooperative &

SME Post & Telecomm Statistical Bureau MASTEL APJII

www.dprin.go.id www.depkop.go.i

d www.postel.go.id www.bps.go.id www.mastel.or.id www.apjii.or.id

Archive e-Discussion Mastel-e-commerce@egroups.com Ukmnet@egroups.com Asosiasi-warnet@egroups.com Asosiasi-warnet-

broadband@egroups.com Genetika@egroups.com Telematika@egroups.com

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

Overview

Current Indonesia Situation Population of 220 million people 90+ million labor force Only 3-4 million univ. grads

IT penetration correlates to education level.

IT Infrastructure Condition 2.2 million PC 8 million lines (Telco’s “monopoly”). ~150 ISP (liberal / no monopoly) 150.000+ Telecommunication Kiosk 1200+ Internet Café

Access point for 60-70% Indonesian users. 25.000 lines for connecting schools.

1.5 million Internet user Double every year. Hope to reach 20 million by 2004.

Business Structure ~40 Million Enterprises >98% SMEs

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

Focus on e-Impact

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.

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.

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.

Example ofReal 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).

Real Life Skill Needed for SMEs Ability to Read & Write in English. Limited knowledge of Internet

e-mail & 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 (e-mail only access).

Indonesian e-Environment

E-commerce Community Mastel-e-commerce@egroups.com Warta-e-commerce@egroups.com I2bc@egroups.com

Indonesia Internet Business Community – I2BC

Ukmnet@egroups.com Indonesian SMEs network.

Indonesian Internet Activities National IT Movement

Telematika@egroups.com Genetika@egroups.com

Internet Café Association Asosiasi-warnet@egroups.com

Education Community Dikmenjur@egroups.com (vocational schools) Jii@isnet.itb.ac.id (rural islamic schools) Kopertis-iv@egroups.com (private universities) Idln@idln.itb.ac.id (digital library network)

Create Mass & Demand

Focus Tactical Activities Focus on Mass Centers

Schools ~ 18 million students Univ ~ 5 million students

Need only ~25.000 lines for schools. Internet & Telco Kiosk ~ 20-30M people Simple policy – high impact.

Focus on simple EC mechanism Substitute Telp, FAX with E-mail / VoIP. Simple B2B community forum e.g. mailing list. Use conventional payment systems.

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.

Brief Infrastructure Strategies

Internet Infrastructure Liberalization of ISP ~150 license. 25.000 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

Brief Knowledge Strategies

The Actor Small Medium Business & Industry.

~80 million workforce. 30+ million business entities. 2.5+ million industries.

Capacity BuildingMultiplying Effect Education Sector – ~20 million

people. Sustainable community-based

telecenters. Development Consultants / NGOs.

Real Example ofKnowledge Tactical Aspects Knowledge Management

Digital Library One way knowledge dissemination Two ways interactions

Knowledge Management Manual Translation Public domain IT Knowledge in CD-

ROM. Digital Library

Indonesia Digital Library Network http://digital.lib.itb.ac.id

Indonesia Cyber Library Society – i_c_s@egroups.com

Knowledge Generation Encourage writers to put & publish

their work in public.

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.

http://www.iptek.net.id http://www.citn.or.id

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.

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.

Thank you