Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

The Role of Information Communication Technology (ICT) in Shifting Informal MSMES to Formal MSMES in Indonesia: The Initial Trigger Model

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2305615,
        author={Ernie  Hendrawaty and Kevin  Joan and Dimas Putra Adzie},
        title={The Role of Information Communication Technology (ICT) in Shifting Informal MSMES to Formal MSMES in Indonesia: The Initial Trigger Model},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={business development services formal business ict msmes tam},
        doi={10.4108/eai.1-10-2020.2305615}
    }
    
  • Ernie Hendrawaty
    Kevin Joan
    Dimas Putra Adzie
    Year: 2021
    The Role of Information Communication Technology (ICT) in Shifting Informal MSMES to Formal MSMES in Indonesia: The Initial Trigger Model
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2305615
Ernie Hendrawaty1,*, Kevin Joan1, Dimas Putra Adzie1
  • 1: University of Lampung
*Contact email: ernie.hendrawaty@feb.unila.ac.id

Abstract

This paper attempts to offer an alternative initial trigger model in developing and shifting informal MSMEs to formal MSMEs. The extant literature on the (i) financial report, marketing, human resources, and financing constraints faced by MSMEs in developing their business and (ii) ICT has been reviewed critically and used to propose an alternative model in developing MSMEs. The paper has developed ICT's Model as a strategy to shift informal MSMEs to formal MSMEs in Indonesia. This model is expected to provide Directorate General of Taxation to meet their liquidity constraint in developing and shifting informal MSMEs. It is also engaged in the involvement of the MSMEs platform based on ICT. The paper is based on conceptual explorations of literature in the area of MSMEs and ICT. This paper is conceptual, so it did not employ any empirical analysis. The findings of this paper will provide the Directorate General of Taxation with an alternative model in developing and shifting informal MSMEs. The present study also has implications for government and policymakers. By involving ICT's, it helps the government to increase the number of formal MSMEs for the higher tax revenue in Indonesia.