Sustainability of the Digital Economy in Indonesia: Opportunities, Challenges and Future Development

Abstract

This study aims to evaluate the challenges and opportunities arising from digital transformation and the digital economy, as well as their impact on human and physical resource development in the context of Indonesia. The methods used were a literature review and a qualitative approach. This study used secondary data obtained from academic articles published in the last 10 years. Data analysis techniques include material collection, data reduction, analysis and synthesis stages, and drawing conclusions. The results indicate that digital transformation brings economic and social opportunities. However, challenges also arise, such as digital divides among different groups, the level of human resource development, data and online system security, and taxation issues. Obstacles to be faced include slow regulatory reforms, bureaucratic complexity, government promotion in various regions, and digital infrastructure limitations. Strategic steps that need to be taken include developing appropriate policies, fostering collaboration between the public and private sectors, enhancing cybersecurity capacity, and promoting digital transformation domestically and internationally to advance national and regional economies. The key conclusion is that the main impact of the digital economy on the Indonesian economy as a whole includes market share growth, increased brand awareness, expanded customer reach, ease of business transactions, and increased product variety at competitive prices.