The level of PC penetration among small businesses is the lowest in Indonesia compared to six other Asian countries, a new research report reveals.

A study by AMI-Partners has revealed that of the 3.73 million small businesses in Indonesia, only 18 percent have bought PCs.

This means the country has the lowest PC penetration rate compared to its neighbors--Hong Kong (70 percent), Korea (61 percent), Malaysia (66 percent), Singapore (82 percent), Taiwan (58 percent) and Thailand (27 percent)--where the research firm has conducted similar studies.

Diana Ng, a research analyst at AMI-Partners' Singapore office, noted that it will take a while before the penetration rate increases, given that many small businesses continue to focus on hiring workers instead of installing computers and automating their businesses.

Ng said in a statement that the PC adoption level remains low because "there is a lack of pressure and motivation from the external environment--including customers, suppliers, competitors and government--for them to adopt IT.”

According to AMI-Partners, Indonesia's small businesses spent US$1.623 billion on IT purchases in 2004.

The study revealed that almost 60 percent of the small businesses that are equipped with computers use white-box PCs so as to lower costs. However, the report found that when it comes to notebook computers, Indonesians are willing to fork out more for Japanese brands, such as Toshiba, which they regard as quality products.