<![CDATA[This study aims to identify the factors influencing the development of Indonesia’s digital services industry and to provide policy recommendations for inclusive and sustainable growth, while also examining the digital divide between Eastern and Western Indonesia. The study employs a system dynamics approach to model the interactions among government policies, technological innovation, regulatory support, and human resource development. A mixed-method approach is used, combining quantitative methods through surveys and secondary data with qualitative methods through interviews, focus group discussions (FGDs), and document analysis. The data are analyzed using Vensim software. The anticipated results of the system dynamics model indicate that policy interventions targeting key leverage points are expected to generate more inclusive and sustainable growth compared with a business-as-usual approach. Furthermore, policies aimed at improving the equitable distribution of human resource capacity and digital infrastructure in Eastern Indonesia are projected to significantly reduce the digital divide between Eastern and Western Indonesia.]]>
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