INDONESIA E-COMMERCE AND THE IMPACT ON THE ECONOMIC GROWTH

Economics & Commerce

Technological advancements have altered the way we do things. Most of them is the manner in which we purchase online. The internet therefore plays an important role in promoting economic and social interests. Not surprisingly, internet penetration has been on the rise for a decade now and is not expected to slow down. As a result of difficulties in building a fixed-line network in an archipelago, as well as a massive enhancement of the mobile network, smartphones are the main device to access the internet. The nationwide trend towards online communication offers opportunities in many digital areas, including e-commerce. Because of the internet, we no longer need to go straight to the store to get the products that we want. Electronic commerce through the Internet is a novel method of doing business. It has an siginificance influence on major industries such as communications, banking, and retail trade. The most significant effects could be correlated with less apparent, but potentially more pervasive, effects on everyday business operations rather than many of the more visible impacts. In this thesis uses the Auto-Regressive Distributed Lag (ARDL) to analyze the E-commerce impact to the Indonesia’s Economic Growth from 1994-2020, with the result found that e-commerce that represented as the number of e-commerce sites as the supply indicator, and the increase of the transaction value also the population of internet users has positive impact on economic growth in indonesia. Furthermore, following by using the short-run and long-run relationship show that e-commerce has significant and unsignificant impact on economic growth in Indonesia within some indicators.

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