The Impact of Accounting Information Based on Electronic Data Interchange (EDI) on Increasing The Revenues of Small Medium Enterprises (SMEs) in Indonesia

Abstract

Increase in production which is produced by Small, Medium Enterprises (SMEs), such as batik handycraf, toys, miniature of temple or wayangs, and another households, nowadays, indicates good performance of economic development. The buyers of these products are tourism from abroad, or order from foreigners in their countries. Many handycraft is promoted locally, so the craf just sold only to foreigners which come to that region. Actually, the volume of products sold can be increased, through the distribution of channel as the supermarket/mall or other retailer in the big city, in order to be easily accessable by the buyers. To increase this type of sales, SMEs and their distributor need knowledge and information about their product. And using information technology supporting EDI can fulfill the information need by them. Direct network link between SMEs and distributors provides certain information, such as information about inventory availability, and schedule production of specific product in SMEs is useful to distributors. And also, SMEs can know the balance of each product in retailer/distributor at any time. Knowledge about these information can produce easily deliver of product, prevent from stock out and excessive inventory, reducing ordering cost, carrying cost, time consume, the complexity of distribution, and last but not least EDI via internet is also useful to promote their products through e-commerce. Finally, all of these will result in the increase of sales volume of the SMEs However, to implement information technology, SMEs need large amount of investment and skilled labor. Therefore to realize this idea, the government and big company as well as academic institution should cooperate to help in financing as well as training to increase labor skill.