Assessing the Impact of ICT Infrastructure on Card-Based Non-Cash Transaction Volumes in Indonesia

Abstract

This research aims to analyze the influence of Information and Communication Technology (ICT) infrastructure on the volume of card-based non-cash financial transactions in Indonesia from 2019 to 2021. This is a quantitative study. Data analysis in this research employs multiple regression with a fixed-effect model. The study utilizes panel data of longitudinal type, consisting of data on Base Transceiver Stations (BTS), Villages/Subdistricts Served by Internet, Automatic Teller Machines (ATMs), ATM/debit cards and credit cards, and non-cash financial transaction volume based on cards across 33 provinces in Indonesia as cross-sectional data, spanning a period of three (3) years from 2019 to 2021 as time-series data. Secondary data for this research were obtained from the Bank of Indonesia, the Central Bureau of Statistics, and the Financial Services Authority. Base Transceiver Station (BTS), Villages/Kelurahan Served by Internet, Automated Teller Machines (ATM), ATM/Debit Cards, and Credit Cards simultaneously have a significant influence on the volume of card-based non-cash finance. Automated Teller Machines (ATMs), ATM/debit cards, and credit cards have a significant influence on the volume of card-based non-cash financial transactions. The research findings are that although ATM and card services significantly increase transaction volume, BTS and internet services in villages/districts do not show a significant impact.