Internet User and Income Consumption in an Effort to Empower MSMEs in Indonesia

English

Abstract

This study aims to observe the growth impetus for internet users towards public consumption which
further boosts people's income in Indonesia. To achieve this objective, data on internet user behaviour,
consumption and GDP per capita were observed. This study uses the Quantitative Threshold
Autoregressive method which is used to predict the behaviour of the data so that the relationship
behaviour between the data can be seen. The hope is that knowing past behaviour data can be an
indicator of decisions that can be taken in the future. All data are secondary data from world banks.We
found that Internet users are the total internet users in Indonesia who are able to boost people's income as
indicated by GDP per capita. Where the internet users' impulse towards consumption is very strong. This
indicates a massive growth in business lines as a result of the Internet revolution in Indonesia, namely
trading businesses that involve digital technology.