E-Commerce Impact on the Shifting of Labor Demand in Indonesia 2015-2017

—Electronic commerce is an excellent capital to support the Indonesian economy. However, e-commerce can shift the demand for labor through the reduction of conventional or retail employment and increase the demand for labor in the fields of Information, Communication, Technology, and knowledge (ICTD) which has the potential to increase unemployment. However, there has been no empirical research that discussed the impact of e-commerce on the shifting demand for labor in Indonesia. The purpose of this research is to find out the description and the factors that influence the demand for ICTD and conventional labor in Indonesia year 2015 - 2017. The statistical method used is panel data regression. This study proves that shifts in labor demand have occurred in Indonesia. E-commerce has a positive and significant effect on the demand for ICTD labor and negative and significant effect on the demand for conventional labor. Based on this research, the government needs to prepare public access facilities to be able to take advantage of e-commerce.