Digital Economy Transformation in Nexus With External and Social Sustainability

Abstract

In response to Indonesia's accelerating digital use, this study aims to address challenges to implement digital business models and identify the impact of digital economy to external and social and environmental sustainability. This study uses desk study, descriptive statistical analysis, and quantitative regression model and qualitative information from discussion with relevant stakeholders. This study provides several important results. First, increase in mobile cellular subscription will lead to increase in inequality, while percentage of internet user to population has shown otherwise. Second, the study also found that technology has a possibility to affect environment since it could increase CO2 emission. The digital technology gives the pressure to increase balance of payment deficit. The recommendations include increasing digital access and digital literacy, developing pro-environment technology, and increasing the exports of digitally deliverable services.