Remote Purchases & Proximity Payment in Indonesia. Why Grow So Fast?

Abstract

The phenomenon of the development of mobile payment in Indonesia, especially remote purchases and proximity payments, is decomposed by the Service-Dominant Logic approach. Furthermore, data from socioeconomic characteristics which are the diffusion of mobile phones, internet retailing, and consumer mobile commerce in Indonesia utilize to elaborate on the phenomenon. The results show that this phenomenon is the result of the Service-Dominant Logic oriented mobile commerce system service. Moreover, Indonesia's potential in ASEAN is still tremendous, the number of Indonesian families with smartphones is still 56.6%, smaller than other ASEAN countries, and the infrastructure supported by the Palapa Ring which will improve internet access. Nevertheless, a comprehensive service system also needs to be supported by comprehensive monitoring and supervision of services with the Service-Dominant Logic paradigm.

Keywords: Remote Purchase, Proximity Payment, Indonesia

DOI: 10.7176/EJBM/11-27-19

Publication date:September 30^th 2019