DIGITAL TRANSFORMATION AND ITS IMPACT ON NATIONAL ECONOMIC GROWTH
Abstract
Digital transformation has become a key driver of Indonesia’s economic growth, creating a more efficient, inclusive, and competitive ecosystem across financial, trade, industrial, and service sectors. According to Bank Indonesia (2024), the value of digital economic transactions reached IDR 2,400 trillion, rising sharply from IDR 800 trillion in 2020. This progress has expanded market access for MSMEs and strengthened the national economy through innovation. Using a qualitative descriptive method and secondary data from BPS, Bank Indonesia, Kominfo, and the World Bank (2023–2024), the study finds that digitalization boosts efficiency, productivity, and financial inclusion. However, challenges such as the digital divide, cybersecurity risks, and low literacy persist, requiring policies to enhance infrastructure, literacy, and innovation-based empowerment.
References
Agustino, L. (2014). Fundamentals of Public Policy. Alfabeta.
Central Bureau of Statistics. (2023). Indonesian Telecommunications Statistics 2023. BPS.
National Cyber and Crypto Agency (BSSN). (2023). Indonesia Cybersecurity Annual Report 2023. BSSN.
Bappenas. (2023). Indonesia Digital Economy Roadmap 2021–2030. Ministry of National Development Planning/Bappenas.
Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (4th ed.). SAGE Publications.
Etzkowitz, H., & Leydesdorff, L. (2000). The dynamics of innovation: From National Systems and “Mode 2” to a Triple Helix of university–industry–government relations. Research Policy, 29(2), 109–123. https://doi.org/10.1016/S0048-7333(99)00055-4
Hanum, F. (2019). Accountability and transparency in village fund management. Journal of Economics and Public Policy, 10(1), 45–58.
Howkins, J. (2001). The Creative Economy: How People Make Money from Ideas. Penguin Books.
Irfan, M., Suryanto, D., & Setiawan, H. (2021). Village fund governance and development effectiveness in Indonesia. Journal of Rural Development, 40(3), 251–265.
Kadafi, M., & Sudrahman, M. (2020). Sustainable village development through the SDGs framework. Indonesian Journal of Sustainable Development, 8(2), 145–160.
Ministry of Communication and Informatics. (2023). Indonesia Digital Economy Annual Report 2023. Kominfo.
Ministry of Cooperatives and SMEs. (2023). Indonesian MSME Statistics 2023. KemenkopUKM.
McKinsey & Company. (2022). The Digital Archipelago: How Online Commerce Is Driving Indonesia’s Economic Growth. McKinsey & Company.
Organisation for Economic Co-operation and Development (OECD). (2022). OECD Digital Economy Outlook 2022. OECD Publishing. https://doi.org/10.1787/ee3c0c33-en
Financial Services Authority (OJK). (2023). Fintech Lending Statistics 2023. OJK.
Pradana, A., & Hidayat, R. (2022). The impact of digital transformation on regional economic growth in Indonesia. Indonesian Journal of Economics and Business, 15(4), 321–337.
Rauniyar, G., & Kanbur, R. (2010). Inclusive growth and inclusive development: A review and synthesis of Asian Development Bank literature. Journal of the Asia Pacific Economy, 15(4), 455–469. https://doi.org/10.1080/13547860.2010.520212
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71–S102.
Santoso, B. (2021). Digital finance and financial inclusion in Indonesia: Evidence from fintech adoption. Journal of Economics and Development Studies, 9(2), 77–89.
Schumpeter, J. A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Harvard University Press.
Setyono, D. (2015). The principles of maqashid sharia in public financial management. Journal of Islamic Economics, 7(1), 23–37.
Todaro, M. P., & Smith, S. C. (2020). Economic Development (13th ed.). Pearson Education.
United Nations Conference on Trade and Development (UNCTAD). (2022). Digital Economy Report 2022: Cross-Border Data Flows and Development. United Nations.
World Bank. (2023). World Development Report 2023: The Digitalization of Development. World Bank Publications.
Wahab, A. (2012). Community participation in village fund management: A collaborative model for sustainable development. Regional Development Journal, 9(2), 112–129.
