STRENGTHENING NATIONAL ECONOMIC GROWTH AND EQUITABLE INCOME THROUGH SHARIA DIGITAL ECONOMY IN INDONESIA

Abstract

The rapid progress of information and communication technology (ICT) creates a newlook of the Indonesian economy, transforming from the conventional economy intoa digital economy. The part of the digital economy currently developing worldwide,include in Indonesia is, Fintech (Financial Technology) and E-commerce. Additionally,Indonesia contributes to 4 percent of total e-commerce sales around the world. Thedevelopment of Fintech in Indonesia is still at early stages, as many industries have notdeveloped such a practice. Besides, there are many opportunities that have not beenexplored to its full potential. The research employs Input Output (I-O) analysis, usingshock of IDR 3.90 trillion in investment of the sharia e-commerce subsector, we foundthrough this study that the national economic growth grew by 0.048 percent or theeconomic output increased by IDR 5.08 trillion. As for the impact on gross value added(GVA) grew by 0.072 percent or increased by IDR 3.72 trillion. In addition, nationallabor income increased by IDR 795.36 billion with investment in sharia e-commercesubsectors. After an additional shock to the Fintech and the trade sector, economicgrowth increased by 0.052 percent or IDR 5.48 trillion. Sharia e-commerce and shariaFintech should be able to have a big impact on the economic growth, increasing theamount of labor needed so that it can absorb more national labor. Thus, economicgrowth, increased income, and job creation will potentially reduce poverty andinequality in that the implications in the long term will further strengthen sustainablenational economic growth.