Indonesia's Digital Economic Transformation: An Opportunity and A Challenge

Abstract

In recent years, Indonesia's economy has experienced significant growth. The main phenomenon that is developing in Indonesia is the transformation of the digital economy such as electronic commerce, fintech, digital services and various segments related to the digital economy. However, this transformation also extends to other sectors such as manufacturing, healthcare, education, retail, hospitality and transportation. This transformation has changed the way of development, production and sales methods of goods and services, especially with the Covid-19 pandemic since March 2020, causing many consumers to prefer to make remote or online transactions using faster and safer payment solutions. This change in consumer behavior has led to the emergence of new business models that influence the market and change conventional businesses in various sectors ranging from retail, transportation and logistics, banking services, agricultural manufacturing, education, healthcare and media. The purpose of this research is to explore the opportunities and challenges related to digital economic transformation in Indonesia. By using the literature review research method, the result of this research is that digital economic transformation is becoming an increasingly important phenomenon in aspects of life and has an impact on global economic growth, innovation in doing business and increasing global partnerships. But on the one hand, there are challenges that need to be overcome related to regulatory issues, the lack of understanding from the public about digital development, and technological infrastructure that requires increased investment.

Keywords: opportunities, challenges, digital transformation, digital economic transformation