Information and Communication Technology (ICT) and Firms Export in Indonesia

Abstract

In the globalization era, ICT has important role in firm’s ability to export their products. Theobjective of this research is to analyze the impact of ICT on the ability of Indonesia’s firm to exporttheir product. Two ICT methods are analyzed, email and website. The data utilized is thesecondary data from the Enterprise Survey conducted by the World Bank in 2015 with 1317 firmsdata. Two analysis is conducted, using chi-square analysis and logit equation. The result indicatesthat 32 percent of firms using email to contact their clients exported their product meanwhile only5 percent of firms which do not use email exported their products. In additon, 36 percent of firmswith website exported their products meanwhile only 7 percent of firms without website exportedtheir products. Using chi-square analysis, it shows that there is a relationship between ICT andwhere the firms sold their products, whether in domestic or international market. The logitequation indicates that firm ownership, email and website affects the firm ability to export.Therefore, firms must be pushed towards digitalization in order to compete in the export market.