5.  The main reason of not using Internet indicated by the non Internet 

subscriber is mainly because, the have not seen the advantages on using 

Internet for business. They indicated that the business is currently running 

well even without the use of Internet. Secondly, it is difficult to obtain 

additional phone line due to the limitation of the telecommunication 

infrastructure and facilities in the area. Lastly, SME exporter notes that in 

order to use Internet, they have to add additional cost to purchase 

equipment and hire new staff. Furthermore, the level of Internet 

accessibilities among SME exporter staff is still low due to the limitation 

of computer and telephone line in their office. Access to Internet were 

mainly only used among the mid level staff, except for the medium scale 

exporter with better office equipment and facilities. 

6.  The existence of Cafe Internet or  Warung Internet  in Indonesia is 

significantly important for the SME exporters. The smaller turnover SME 

exporters, SME traders, and the non direct exporter SME, were among the 

user of Warnet to communicate with their buyers or business partner. The 

above situation clearly indicates that the SME exporters were quite 

flexible in removing barriers to undertake their business activities. 

7.  Web site ownership of the SME exporters is still small (only 25 percent of 

the SME surveyed), but nevertheless almost 50 percent of the SME 

exporters indicated that they are planning to develop their own web site in 

the near future for promotion purpose. SME exporters that produce 

handicrafts and furniture were among the main web page owner compared 

to the other categories of SME exporters. Furthermore, these website 

owner also indicated that web site is a quite effective promotion tools to 

increase their market. However, price war among similar producer and 

also violation of property right were the disadvantages that experienced by 

the web site owner among SME exporters. Currently SME exporters in big 

cities (Jakarta, Yogyakarta and Surabaya); SME manufacture; SME direct 

exporter; and SME with bigger turnover, were the main owner of web site, 

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