International Law Discourse in Southeast Asia
Vol. 2 No. 1 (2025): January-June, 2025

The Digital Economy Boom: How E-Commerce is Reshaping Indonesia’s Market

Miftahul Jannah (School of Business and Management, Institut Teknologi Bandung)
Zuhairo Mahmuda (Faculty of Business and Management, Universiti Teknologi MARA)
Amla Alankrita (Faculty of Economics, Indian Institute of Management Ahmedabad)



Article Info

Publish Date
31 Jan 2025

Abstract

This study examines the rapid growth of e-commerce and its transformative effects on Indonesia’s digital economy. As one of Southeast Asia's largest and most dynamic markets, Indonesia is undergoing a digital transformation that significantly alters traditional business models and consumer behavior. The research explores the role of e-commerce platforms in reshaping market structures, influencing business practices, and changing consumer purchasing patterns. Findings indicate that e-commerce is a key driver of economic growth, expanding access to goods and services across both urban and rural regions, and promoting financial inclusion. The study also highlights the crucial role of mobile technology and increased internet penetration in facilitating the widespread adoption of online shopping. However, challenges such as logistical inefficiencies, digital payment security, and regulatory frameworks pose significant barriers to the long-term sustainability of e-commerce in Indonesia. The novelty of this research lies in its comprehensive analysis of the digital economy’s evolution, with a specific focus on e-commerce as a central driver of economic change. Given the growing importance of the digital economy in Indonesia’s development, this research is vital for understanding the future trajectory of the market. The study offers valuable insights for businesses, policymakers, and stakeholders, providing recommendations for fostering a secure, inclusive, and sustainable e-commerce ecosystem in Indonesia.

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Journal Info

Abbrev

indi

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

Indonesia Discourse is a multidisciplinary, semi-annual journal that provides a timely and comprehensive study of Indonesias culture, history, government, economy, society, technology, and health. The journal is dedicated to fostering interdisciplinary research that examines Indonesias evolving role ...