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e-Commerce empowerment for SMEs

e-Commerce empowerment for SMEs. Onno W. Purbo Independent IT Writer Onno@indo.net.id Indonesia. Industry& Trade Cooperative & SME Post & Telecomm Statistical Bureau MASTEL APJII. www.dprin.go.id www.depkop.go.id www.postel.go.id www.bps.go.id www.mastel.or.id www.apjii.or.id.

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e-Commerce empowerment for SMEs

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  1. e-Commerceempowerment for SMEs Onno W. Purbo Independent IT Writer Onno@indo.net.id Indonesia

  2. Industry& Trade Cooperative & SME Post & Telecomm Statistical Bureau MASTEL APJII www.dprin.go.id www.depkop.go.id www.postel.go.id www.bps.go.id www.mastel.or.id www.apjii.or.id References

  3. 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

  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) • 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.

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

  9. Industry Structure(BPS-KOMPAS 21-08-2000)

  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 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).

  15. 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).

  16. Indonesian e-Environment

  17. 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.

  18. 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)

  19. Create Mass & Demand

  20. 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.

  21. 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.

  22. Brief Infrastructure Strategies

  23. 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

  24. Brief Knowledge Strategies

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

  26. Capacity BuildingMultiplying Effect • Education Sector – ~20 million people. • Sustainable community-based telecenters. • Development Consultants / NGOs.

  27. Real Example ofKnowledge Tactical Aspects • Knowledge Management • Digital Library • One way knowledge dissemination • Two ways interactions

  28. 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

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

  30. 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

  31. 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.

  32. 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.

  33. Thank you

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