Daengku: Journal of Humanities and Social Sciences Innovation
Vol. 3 No. 6 (2023)

The Role of Digitalization on Sustainable Development: An Empirical Study of Indonesia

Alfiani Farida (Faculty of Economy and Business, Andalas University, Padang, Indonesia)
Syafruddin Karimi (Faculty of Economy and Business, Andalas University, Padang, Indonesia)
Febriandi Prima Putra (Faculty of Economy and Business, Andalas University, Padang, Indonesia)



Article Info

Publish Date
09 Dec 2023

Abstract

This study empirically investigates the impact of digitalization on sustainable development achievement in Indonesia. The investigation draws upon secondary data, covering annual data from 34 provinces of Indonesia spanning from 2013 to 2021. Digitalization is proxied by the subindices of the Information and Communication Technology (ICT) Development Index (IP-TIK) published by the Central Statistic Agency (BPS), while the achievements of sustainable development are measured by a composite index employing 19 indicators covering economic, social, and environmental dimensions. Utilizing the System Generalized Method of Moment (SGMM), the results show that the promotion of access to ICT and gross fixed capital income appears to be a way of enhancing sustainable development achievement in the short and long run. Conversely, the increase in ICT usage and foreign direct investment have proved to significantly dampen the sustainable development achievement of Indonesia in the short and long run. Efforts are required to ensure equal access to ICT and to promote the utilization of ICT for productive purposes. Furthermore, strategies to attract foreign capital inflow should be paired with the reinforcement of sectoral and environmental regulations to address the adverse effects of foreign investment.

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Journal Info

Abbrev

daengku

Publisher

Subject

Humanities Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Other

Description

The Daengku seeks to publish high-quality research papers, review articles, and book reviews that make a contribution to knowledge through the application and development of theories, new data exploration, and/or scientific analysis of salient policy issues. The Scope of the Daengku includes the ...