<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) play a significant role in supporting Indonesia's economic growth. The rapid development of digital technology has created opportunities for MSMEs to enhance their competitiveness through the utilization of social media, online marketplaces, digital payment systems, and other supporting technologies. However, the digital transformation process also presents several challenges, including low levels of digital literacy, limited human resources, insufficient capital, and unequal access to technological infrastructure. This study aims to analyze the condition of MSMEs in the digital era, identify the challenges encountered during the digital transformation process, and examine development strategies that can be implemented to improve competitiveness and business sustainability. This research employed a qualitative approach using a descriptive research design through a library research method. Data were collected from various scientific sources, including journal articles, books, conference proceedings, research reports, and relevant official publications. The data were analyzed using qualitative data analysis techniques consisting of data reduction, data presentation, and conclusion drawing. The findings indicate that digitalization enables MSMEs to expand market reach, improve operational efficiency, and strengthen customer relationships. However, the success of digital transformation is strongly influenced by the readiness of human resources, adaptability, and support from various stakeholders. Therefore, MSME development strategies in the digital era should focus on enhancing digital literacy, optimizing the use of digital platforms, strengthening innovation, and fostering collaboration among the government, business actors, educational institutions, financial institutions, and technology companies. The implementation of these strategies is expected to enhance competitiveness, ensure business sustainability, and increase the contribution of MSMEs to Indonesia's national economic growth.]]>
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