Opportunities and Challenges of Digital Transformation in the Indonesian Economy

Abstract

Digital transformation has become a key factor in driving global and local economic change, including in Indonesia. This study aims to analyze the contributions, challenges, and implications of digital transformation to the economy, consumption patterns, and business models in Indonesia through a literature review method. Data were obtained from scientific articles published in the last five years and analyzed thematically. The results of the study show that digitalization plays an important role in accelerating national economic growth, especially through the e-commerce, fintech, and creative economy sectors. The change in consumer behavior towards application-based services and the adoption of the platform economy business model are clear evidence of fundamental shifts due to technology. However, digital transformation also presents serious challenges, such as digital skills gaps, infrastructure inequality between urban and rural areas, and data security vulnerabilities. This research confirms that the success of digital transformation in Indonesia depends on collaboration between the government, the private sector, and the community to build an inclusive, secure, and sustainable digital ecosystem.