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Rudy Rusdiah / V.P email: rusdiah@rad.id or mastel@mastel.or.id

E-commerce Workshop “Policy and Implementation Ecommerce in Indonesia subtopic “Role of Ecommerce in marketing and trade promotion Jakarta, 3-4 May 2000. Rudy Rusdiah / V.P email: rusdiah@rad.net.id or mastel@mastel.or.id. Introduction on Mastel.

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Rudy Rusdiah / V.P email: rusdiah@rad.id or mastel@mastel.or.id

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  1. E-commerceWorkshop “Policy and Implementation Ecommerce in Indonesiasubtopic “Role of Ecommerce in marketing and trade promotionJakarta, 3-4 May 2000 Rudy Rusdiah / V.P email: rusdiah@rad.net.id or mastel@mastel.or.id

  2. Introduction on Mastel • Mastel (Masyarakat Telekomunikasi Indonesia or Infocom Society of Indonesia ) established in 1 Dec 1993 • Mastel supported by 14 association in IT, Telecom and MultiMedia, 173 individual members and some nonprofit organization (university, lsm) Http://www.mastel.or.id rusdiah@rad.net.id

  3. Background • Internet revolution - new economy • a new way of doing business by using electronic means to interact and do transaction • B2B - retailer, wholesaler, supplier, SP • B2C - Business to customer relations Http://www.mastel.or.id rusdiah@rad.net.id

  4. Background • Ecommerce: • 1. Netcitizen - eSociety - Global Information Society • 2. Commodity: Bitify and Non bitify • 3. Payment System:Convention banking system, Credit Card, digital signature, CA? (related to Cyberlaw) Http://www.mastel.or.id rusdiah@rad.net.id

  5. Background - netcitizen • World wide Netcitizen 95.4 million(1998) and 130.6 million(2000) and 350 million(2003) • Asia Pasific 375 million in 2005. Important region for ecommerce • China 40 million internet user 2001 • Indonesia netcitizen ? • Internet Café: Portal for entry for netcitizen Http://www.mastel.or.id rusdiah@rad.net.id

  6. Background • First generation: • Homepage present and email for transaction with customer and vendor • payment using conventional banking/credit card • Second Generation ecommerce - online order/web order and payment using conventional banking/credit card/CA and secure web transactions(verisign) Http://www.mastel.or.id rusdiah@rad.net.id

  7. continue • Future Third Generation:customer centric- closely integration customer and vendor also integrated intelligent application with backoffice processes. • IDC B2C important from early adopter to 2001, B2B then become important • Internet revenue USD 150 billion 2000 and USD 1.4 trillion in 2003 Http://www.mastel.or.id rusdiah@rad.net.id

  8. FOCUS ON B2C ECOMMERCE • For Indonesia and less developed countries B2C is more significant • Focus on B2C to empower SME local dotcom company Http://www.mastel.or.id rusdiah@rad.net.id

  9. Opportunity of Ecommerce • 1st generation: Low barier of entry for SME : USD 35/monthly for webhosting services. USD 150/month for webprogramming • More advanced secure webhosting for ecommerce starting for USD 300/monthly and startup capital about USD 7,000 in hardware, human resources ) Http://www.mastel.or.id rusdiah@rad.net.id

  10. Opportunity for SME • Increase efficiency of company: - doesn’t need to rent outlet space & large inventory - less worker (showroom, sales) - always open and access from anywhere • Increase efficency in economy: - faster response - new paradigm of distribution: eliminate intermediatry in the supply chains Http://www.mastel.or.id rusdiah@rad.net.id

  11. Benefit Ecommerce • E commerce increase efficiency in economy • Ecommerce increase competitive advantage for SME Http://www.mastel.or.id rusdiah@rad.net.id

  12. Mastel view: opportunity for Indonesian SME • Small local SME -> Global prespective Deperindag must socialize ecommerce • Singapore: Association of Small Medium Enterprise (ASME) launch SME portals • China MII(Ministry of Information) launched IT website for SME • promoting SME products and online store => eMall and SME Portal Http://www.mastel.or.id rusdiah@rad.net.id

  13. Continue : Mastel view: • Related Government departemen help reduce high cost, bureaucracy and license for startup dotcom company • Easier for Startup company to get listed and IPO • venture capital to empower startup dotcom Http://www.mastel.or.id rusdiah@rad.net.id

  14. BARRIER FOR ECOMMERCE PLAYER • Bandwidth • difficult to get ISDN, no Broadband • only dialup analog available currently • Tariff of telecom is still expensive, need subsidy for warnet/internet café to increase the no of netcitizen • Low Computer Literacy: PC penetration less than 1% compared to 36 % in USA Http://www.mastel.or.id rusdiah@rad.net.id

  15. Conclusion • Technology will progress very fast • Government and regulator must be accommodative and make the environment conducive for SME • (consumer protection act, IPR etc..) • Thank you for your attention • email: rusdiah@rad.net.id Http://www.mastel.or.id rusdiah@rad.net.id

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