THE EFFECT OF DIGITALIZATION ON ECONOMIC GROWTH IN INDONESIA

Abstract

This research aims to analyze the influence of digitalization on economic growth in Indonesia. The development of information and communication technology has driven transformation in various sectors of the economy, including trade, industry, and financial services. The research method used is a literature study with a qualitative descriptive approach. The results of the study show that digitalization contributes positively to increasing productivity, operational efficiency, and expanding market access for micro, small, and medium enterprises (MSMEs). However, challenges such as the digital divide and limited infrastructure are still obstacles in optimizing the benefits of the digital economy.