Identification of Digital Divide across Indonesian Provinces: the Analysis of Key Factors

Abstract

Despite the economic and societal benefits of digitalisation and digital transformation, it is necessary to map country's digital conditions and identify the digital divide to formulate an effective strategy. The digital divide should be measured periodically to monitor progress and determine continuous improvement. This paper identifies the current digital divide among provinces in Indonesia. The study uses the hierarchical agglomerative clustering method based on The Indonesian Digital Society Index data from the Ministry of Communication and Informatics. It also analyses some key factors of the digital divide based on data from the Indonesian Bureau of Statistics using the multiple linear regression model. The results show three types of the digital divide across Indonesian provinces related to access, usage, and outcomes of information and communication technology. Gross Regional Domestic Product per capita, Wage/Salary, Proportion of Formal Labor, and Size of the Working-Age Population are identified as factors significantly affecting the digital divide.

Keywords

• digital transformation
• digital divide
• hierarchical clustering
• linear regression model