Identifying and Assessing Correlations in Indonesia’s 2019 E-Commerce Marketplace

Abstract

This study identifies correlations between e-commerce business statistics and household consumer statistics during 2019 (pre-COVID-19) in Indonesia. Data sets representing household consumer behavior and e-commerce business behavior during 2019 in Indonesia is sampled and analyzed using the Spearman R method. Data Set 1 is sampled and structured to compare some of the 2019 household expenditure categories of each province in Indonesia, to 2019 consumer e-commerce transaction methods observed in each province in Indonesia. Data Set 2 is sampled and structured to compare 2019 statistical properties of e-commerce businesses per province in Indonesia, to 2019 household consumer statistics per province in Indonesia. Hypotheses are presented and tested to verify or reject the existence of correlations of interest. After a statistical significance test is performed on the outputs of the Spearman R analysis, hypotheses are either accepted or rejected based on acceptable statistical results. The strongest correlations revealed are as the percentage of 2019 e-commerce E-Wallet transactions increase, 2019 household expenditures for transportation and communication, food and beverage, and health and education also increase. Increased data sharing between the retail financial market and the government is recommended to assist policy makers in preemptively identifying and addressing socio-economic problems.