Digital Economy and Changing Indonesian Consumer Behavior

Abstract

This study aims to analyze how the transformation of the digital economy has affected the consumption patterns of the Indonesian people. The development of e-commerce, fintech, and social commerce has encouraged a shift in shopping behavior from the conventional model to a more flexible, fast, and technology-based digital model. This study uses a literature review method with a qualitative approach, examining various current literature to understand the dynamics of changes in consumption in the digital era. The results of the analysis show that digitalization presents great opportunities in the form of increased market access for Micro, Small, and Medium Enterprises, distribution efficiency, and the creation of new jobs. However, on the other hand, there are challenges in the form of dominance of large platforms, the risk of impulse consumption due to Buy Now Pay Later services, and threats to personal data security. In addition, digital inequality between urban and rural communities is an important factor that has the potential to widen the socio-economic gap. This research emphasizes that inclusive policy strategies, strong consumer protection, and adequate digital and financial literacy are needed for the transformation of the digital economy to take place in a sustainable manner and provide equitable benefits to all levels of Indonesian society.