Digital Inequality: E-Commerce Access and Its Implications for Underdeveloped Regions in Indonesia

Abstract

Indonesia is undergoing a significant digital transformation, but the disparity between developed and underdeveloped regions remains evident in internet access, infrastructure, and digital economic integration. This study investigates how gaps in digital infrastructure—specifically internet density, logistics facilities, and internet speed—affect the number of online MSMEs, e-commerce GDP contribution, and poverty rate across four provinces: Jakarta, West Java, East Nusa Tenggara, and Papua. Using a quantitative approach with SPSS analysis, strong correlations were found. Internet density has a highly significant positive correlation with online MSMEs (r = 0.994, p = 0.006). Logistic warehouses strongly predict e-commerce GDP contribution (R² = 0.991, F = 214.27, p = 0.005), and internet speed has a significant negative impact on poverty (β = -1.228, p = 0.021). A composite digital inequality index also highlights substantial gaps between the developed and underdeveloped regions, confirming hypothesis H₄. These findings validate that digital infrastructure directly influences economic outcomes, particularly in marginalized regions. The study concludes that bridging the digital divide is essential for inclusive development. Policymakers should prioritize investment in digital infrastructure as a strategic tool for reducing poverty and stimulating regional economic growth.