The role of information technology

The role of information technology in improving small businesses’ contribution to the nation’s economy is of importance. However, the use of information technology in Indonesia has generally been lower than those of most countries. Availability of information tech ology infrastructure, number of unit of computers owned by enterprises, and internet access indicate this. As reported by the World Bank (2002), Indonesia’s profile in information and communication technology (ICT) application was as follows: ratios of computer to population were 9.9 per 1,000 residents; telephone connection was 91 per 1,000 residents; internet hosts was 0.8 per 10,000 residents; and internet users was 2 millions. Investment in ICT, meanwhile, was USD3.54 billion (2.2% of GDP) which is equivalent to USD16.6 per capita.