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The Impact of Internet Access on Household Expenditure using the Matching Method

Consumer education magazine published by OJK OJK (2017) informed that InterMedia in its report stated that 40% of the population in the very poor category have the mobile phone and even 0.1% of them have mobile money accounts. Moreover, it also reported that Indonesia was ranked first as the fastest growth in internet connection in the world. This study aims to evaluate the impact of internet access on household expenditure in Indonesia by using cross-section data sourced from the 5th wave of the Indonesian family life survey (IFLS). This study uses a Propensity Score Matching method. Estimated by using STATA 15, the result confirms that internet access has a significant impact in determining household expenditure in Indonesia. Households having internet access have about 29% higher expenditure than other households.