The number of Batik SMEs and internet users today in Indonesia has increased This condition prompted the government to create a program of 8 million SME program to go online in 2019. But, until 2017 only 45% of the total targeted SMEs go online. This condition raises the need to understand the behaviour of SMEs implementing internet technology. The research focuses on UKM Batik and the online marketplace (OM), where batik is a unique commodity of Semarang City and OM is the implementation of emerging internet technology. The factors of OM adoption are adopted from a comprehensive T-O-E Framework. These factors form the basis for agent-based model development. Agent-based models that describe the behaviour of SMEs individually show the results of this study. Only 6 of 20 factors are used in the simulation model. These factors are the level of SME understanding that OM can increase the number of company sales, the level of SME understanding that OM can expand the company’s marketing and sales area, the cost of implementing OM, the hardware readiness of SMEs, the level of courage of SME trying new things and the experience of SMEs in using OM.

The number of Indonesian SMEs and Indonesian Internet users are increasing. This situation is of concern to the Indonesian government. The government then launched a SME go online program with a target of 8 million SMEs using the online platform in 2019. One of the online platforms that SMEs may use in Indonesia is the online marketplace such as Tokopedia, Bukalapak and others. Previous research studied the factors that support or hinder the adoption of e-commerce in SMEs environment but had not explored how the interaction of those factors in the adoption of online marketplace. In a social system, the diffusion and adoption of online marketplaces in SMEs is influenced by socio-economic characteristics, personality variables and communication behaviours that exist and are acquired by individuals. This paper describes a conceptual framework for the development of an individual-based simulation commonly referred to as an agent-based simulation to understand the adoption by SMEs and the diffusion of online marketplace in SME environments.