The Paradox of Indonesian Digital Economy Development

Abstract

In line with the rapid growth of the global e-commerce industry today, Indonesia has enormous digital economic potential in the future. The Indonesian government is focusing on developing the digital economy by increasing the connectivity infrastructures as well as the local market. Nevertheless, there are some paradoxes caused by the existing regulations. This paper elaborates on the paradox of digital economy development in Indonesia. By using a mainstream-approach policy analysis method, this study describes the problematic situation of Indonesian digital economy governance. This is a qualitative study where the primary data derive from mostly statutes, government official documents, as well as reports. The discussion consists of (1) e-commerce: the main driver of Indonesian Digital Economy; (2) Indonesian Digital Regulatory Framework and Challenges; and (3) The Paradoxes of Indonesian Digital Economy. Due to various sectors of the digital economy, the discussion focuses on the e-commerce sector.