<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of Indonesia’s economy, contributing significantly to gross domestic product income and employment absorption. However, MSME actors still face administrative constraints, limited access to capital, and challenges in entering global markets. To address these issues, the government introduced the sole proprietorship company scheme under the Job Creation Law to simplify regulations and provide legal certainty for MSMEs. This study analyzes the implications, opportunities, and challenges of MSME transformation through sole proprietorship companies in the digital economy era. The research adopts a normative juridical method with a statutory and conceptual approach. The findings indicate that sole proprietorship companies facilitate business legality, improve access to capital, and expand market reach through business digitalization. However, challenges such as low digital literacy, infrastructure gaps, and cybersecurity risks remain significant obstacles. Therefore, affirmative policies, including digital education, infrastructure development, and stronger data protection regulations, are necessary to ensure the sustainability of MSMEs through sole proprietorship companies in the digital economy.]]>
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