The Role of the Digital Economy in Indonesia’s Economic Growth: Opportunities, Challenges, and Socio-Economic Impacts

Abstract

This study examines the development of the digital economy in Indonesia and its contribution to national economic growth, with a focus on the e-commerce, fintech, digital banking, and SME transformation sectors. The research employs a descriptive-analytical method using data obtained from Central Statistics Agency (BPS), international industry reports, and academic articles. The findings reveal that the digital economy has significantly contributed to Indonesia’s Gross Domestic Product (GDP), while also creating new opportunities for job creation, financial inclusion, and the enhancement of digital literacy. However, this development also poses challenges such as the digital divide, low digital literacy among some SMEs, data security risks, and shifts in consumer behavior. This analysis highlights the importance of synergy between government, private sector, and society to maximize the benefits of the digital economy while minimizing its negative impacts. The study’s findings are expected to provide theoretical contributions to the academic literature on the digital economy, as well as practical insights for policymaking and strategies to harness digitalization opportunities in Indonesia.