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

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.