Bridging The Digital Divide : The Role of Technology in Enhancing Rural SMES in Indonesia

Abstract

This study aims to analyze the digital divide faced by rural Small and Medium Enterprises (SMEs) in Indonesia, assess the role of technology in bridging this gap, identify challenges in technology adoption, and propose strategies to enhance SME competitiveness in the digital era. A qualitative approach was used, combining a literature review and netnography of relevant scientific articles and online journals published between 2020 and 2024. Data was analyzed to identify key factors influencing the digital divide and technology adoption among rural SMEs. The study identifies limited infrastructure access, low digital literacy, and insufficient government support as the primary drivers of the digital divide in rural Indonesia. Despite the potential of digital technology to improve SME competitiveness and revenue, technology adoption remains limited in rural areas. The research highlights the need for stronger collaboration among the government, technology service providers, and SMEs to accelerate technology adoption. A key limitation of the study is its reliance on secondary data sources, which may not fully capture the local variations and specific challenges faced by SMEs in different rural areas. This study offers valuable insights into the digital divide affecting rural SMEs in Indonesia and proposes actionable recommendations to enhance technology adoption. It contributes to the growing body of research on digital inclusion and provides practical strategies to improve the competitiveness and sustainability of rural businesses in the digital era