Digitalization has become a key pillar in driving economic, social, and governance transformation in Indonesia. However, it is necessary to verify whether digitalization has supported sustainable development goals. This study evaluates the impact of digitalization on sustainability dimensions at the district/city level in Indonesia using the Propensity Score Matching (PSM). The results show that digitalization has a significant negative impact on environmental quality. Conversely, the impact on the economy and social welfare is not statistically significant, indicating that the benefits of digitalization are not evenly distributed and tend to be concentrated among groups that already have digital access and capabilities.
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