STRATEGY MANAGEMENT

Journal Review
Tania Theodora
(163012100015)
 Strategic Research on the
Development of E-Commerce in
Indonesia
International Core Journal of Engineering
Vol. 6 Issue 7
2020
By Steven Jason
OVERVIEW

Purpose Method Object

Formulate the strategic PEST and SWOT Analysis E-Commerce in Indonesia
management for the SWOT: Strength, Weakness,
application of e-commerce Opportunity, Threat
when they have to face the PEST: Political, Economic, Social,
and Technological
global economic challenge
and to be more competitive
E-commerce Strategic management is the process of evaluation, planning,
and implementation designed to maintain or improve competitive
advantage in case of E-commerce field.

PEST SWOT
• Political: government and legal factors (political • Strength: To make a business have advantages
stability, tax, trade regulations, safety, labour) over other advantages
• Economic: interest rates, inflation, economic • Weakness: characteristics that may bring
growth, currency exchange rates, unemployment disadvantages
rates • Opportunities: Environmental factors that can be
• Social: customer demographics, social culture, used by enterprises
attitudes and lifestyles, and educational • Threats: Elements in the environment that may cause
background trouble to business
• Technological: technological progress,
technological life cycle, the role of the Internet, and
government spending on technological research
 PEST

Indonesia’s e-commerce laws and policies are still being drafted. So far e-
commerce activities are regulated in Government Regulation Number 80 Year
P 2019 concerning Trade Through Electronic Systems.

• Increase in foreign capital inflows  Indonesia is the largest compared to

other developing countries
E •
•
Increase in the capital dan financial transaction surplus
Inflation rate (3.13%) is still within the target range (3.5 ± 1%)
• GDP growth rate is 5.17% & credit growth rate (11.8%)
• Increase in import and export volume by 13.17% over last year
Economic stability was controlled
 PEST

• Number of Internet users in Indonesia is 171.7 million (increased by

10.12% over last year), the Internet penetration rate is 64.8%, and the
total population is 264.1 million.
• Usage: communication, accessing social media, finding work-related
S information, reading news, watching movies online, buying online, etc
• Rich and varied online products and services: transportation, electronics,
takeaway, computers, air tickets, travel, etc.
• Payment methods can also meet consumer demand.
• Electronic customs do not yet exist
 PEST

• Compared with other developed e-commerce countries, Indonesia's

electronic payment infrastructure and technology are still lagging behind.
• Main issues: establishing an online credit system and improving the security
T •
of electronic payments.
Opportunity: increase and promote the use of e-commerce technology in
various fields; logistics, information circulation, personnel management,
financial management, etc
 SWOT
• More and more trade enterprises apply
e-commerce technology
• High growth rate of e-commerce industry
• Rich human resources and huge market
• Infrastructure needs improvement
• Electronic payment platform needs
improvement
• Lack of social knowledge and weak skills
[INTERNAL]
• Trend of information globalization
• The Indonesian government implements
policies such as opening up and
S O •
liberalization of investment
More foreign companies and investors
are entering the Indonesian market
• Indonesia's cyber security problems are
W T •
not guaranteed, and many malpractices
The legislative work of Indonesian e-
commerce is quite lagging behind
• Indonesian companies face the challenge
of foreign companies entering the market
[EXTERNAL]
RECOMMENDATION
STRATEGIES
CONCLUSION

Using PEST and SWOT analysis based on the current application of e-commerce in Indonesia, a strategy
suitable for the current domestic market situation is formulated.

1. Promote the development of communication technology infrastructure and lay the foundation for
trade enterprises to develop e-commerce.
2. Accelerate the improvement of legislative work.
3. Encourage and support enterprises to apply e-commerce to production and operation activities.
4. Indonesian e-commerce trade companies must cooperate with the government.
5. Actively develop and widely apply e-commerce technology in many businesses field.
6. Enterprises should make their own preparations, at the same time exert their subjectivity, and
bravely face the various challenges in the development of e-commerce.

As the global market is continually changing, so while implementing the strategies, we should adapt to
changes & pay attention if any necessary adjustments is needed.
 THANK YOU
FOR YOUR ATTENTION

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