The Influence of Government Public Policies, Competitive Business Environment and Managerial Competencies on the Digital Business Practices at the Commercial Banks in Jakarta, Indonesia

This paper investigates: firstly, brief descriptions and advantages of the digital business practices at the commercial banks in Jakarta; secondly, the influence of government public policies, competitive business environment and managerial competencies on the digital business practices; thirdly, strategic implications of digital business practices. A survey method was used to cover information and gather primary data from a sample of 50 managers at the top ten commercial banks in Jakarta, Indonesia. The findings of this research are temporarily based on the hypotheses that government public policies, business environment and managerial competencies positively and significantly influence on the digital business practices at the commercial banks in Jakarta. This research found that 73.2% of changes in the digital business practices was caused by competitive business environment and managerial competency. While 26.8% of changes in the digital business practices caused by other factors which were not observed in this research. The results obtained from the regression equation model with a predicted model as follows: Ŷ = 10.217 0.320 X1 0.175X2 0.123X3 The predicted results obtained from the regression equation model have proved dependent variables positively and significantly influence on the digital business practices. So, it is a critical time to suggest that the management of the commercial banks in Jakarta needs to pay close attention to redesign or improve policies on the digital business practices by investing more budgets go for digital information and technology applications to anticipate the future better competitive business environment, especially in facing the era of the ASEAN Economic Community at this time