The Impact of Internet Availability on Economic Growth in Indonesia's Underdeveloped Regions

Indra Gunawan (Univesitas Kristen Indonesia)

Indonesian Journal of Business Analytics (IJBA)
Vol. 6 No. 4 (2026): August 2026

This study examines how internet availability accelerates economic growth in 122 of Indonesia’s underdeveloped regions. Using a quantitative fixed-effects panel regression spanning from 2020 to 2025, we analyze the direct impact of regional internet penetration rates on local gross domestic product. This research enriches growth theories by providing empirical evidence from highly resource-constrained infrastructure environments. The results demonstrate that expanded internet access significantly boosts regional economic growth by optimizing local digital trade channels. However, these digital dividends remain constrained by low literacy rates. Implicating policy, the government must pair infrastructure deployment with targeted digital literacy programs to ensure equitable economic expansion in peripheral areas.