1.2 Research problems
Regardless of e-Business proliferation and the benefits offered, however Indonesian SMEs are still ignoring and
hesitating to adopt e-Business, which they considered it as a new phenomenon. Furthermore, issues such as poor
infrastructure and inadequate online policies (Shakir et.al, [16]), which has made Indonesia lagging behind in term
of networked readiness and particularly in adopting e-Business. The report from World Economic Forum and
INSEAD in 2012 has ranked Indonesia in 80th position (from 142 countries) based on its Networked Readiness
Index (NRI), which made Indonesia in a lower position compared to other Asian Pacific countries (Singapore, 2nd;
Malaysia 29th, China 51 st and Thailand 77th). The ranking of the NRI was assessed on four factors including:
environment (political and regulatory; business and innovation), readiness (infrastructure, affordability, and skills),
usage (individual, business and government) and impact (socio and economic).