Digital economy development in Eastern Indonesia: The infrastructure and socio-economic dimensions

I Made Jyotisa Adi  Dwipatna; Dirmansyah  Darwin; Shadry  Andriani; Putu Ananda Devi  Nugraha; Andi Nur  Wahyuningsih

doi:10.55942/pssj.v5i12.1040

Authors

I Made Jyotisa Adi Dwipatna Universitas Negeri Makassar https://orcid.org/0009-0000-0758-1563
Dirmansyah Darwin Universitas Negeri Makassar https://orcid.org/0000-0002-1153-365X
Shadry Andriani Universitas Negeri Makassar https://orcid.org/0009-0008-2754-1751
Putu Ananda Devi Nugraha Universitas Negeri Makassar https://orcid.org/0009-0009-6325-6154
Andi Nur Wahyuningsih Universitas Negeri Makassar https://orcid.org/0009-0004-5033-3329

DOI:

https://doi.org/10.55942/pssj.v5i12.1040

Keywords:

digital economy, public infrastructure, internet services, education, personal income

Abstract

The growth of the digital economy brings both challenges and opportunities for regional economic development, especially in areas where infrastructure and human resources are unevenly distributed. This study examines how digital infrastructure and socio-economic factors influence ICT competence, which is a key driver of digital economic progress in Eastern Indonesia. Using data from 13 provinces between 2016 and 2023, the study applied a Fixed Effects Model (FEM) to analyze regional and time-based differences. The results show that Internet access has a strong positive impact on ICT competence, highlighting the critical role of digital infrastructure in boosting participation and reducing the digital gap. Education also plays a significant role, with improved education helping to build digital literacy and better prepare the population for technological change. On the other hand, income does not seem to have a significant effect on ICT competence, suggesting that economic factors are not yet the main drivers of technological skills in the region. Overall, the findings emphasize that digital development in Eastern Indonesia is primarily influenced by the availability of infrastructure and the quality of human resources. To support inclusive and sustainable digital growth, policies should focus on ensuring equal access to the Internet and incorporating digital literacy into education.

Author Biographies

I Made Jyotisa Adi Dwipatna, Universitas Negeri Makassar

I Made Jyotisa Adi Dwipatna, S.E., M.SE., is a lecturer in the Department of Economics at the Faculty of Economics and Business, State University of Makassar. His research interests span Public Economics, Tourism Economics, Digital Economics, and Education Economics, with a focus on how policy, technology, and education impact sustainable regional and national development. He is actively involved in both teaching and research, contributing to the advancement of knowledge and evidence-based policymaking in Indonesia.

Dirmansyah Darwin, Universitas Negeri Makassar

Dirmansyah Darwin, S.E., M.Si., is currently a lecturer in the Development Economics Study Program at the Faculty of Economics and Business, Makassar State University. His contributions to the human development paradigm are seen from multiple perspectives, not just from a single theory, but also through social phenomena, capital relations, the role of government, and technological development—factors that all play a significant role in shaping human progress.

Shadry Andriani, Universitas Negeri Makassar

Shadry Andriani, S.Pd., M.Si., is a lecturer in the Development Economics Study Program at the Faculty of Economics and Business, Makassar State University. Her expertise in labour economics has been invaluable to this research, particularly in analyzing labour market dynamics, wage structures, and policies aimed at improving labour productivity. Shadry's dedication to advancing studies in labour economics and her commitment to fostering an inclusive and sustainable labour market are evident in her extensive academic work and contributions to the field.

Putu Ananda Devi Nugraha, Universitas Negeri Makassar

Putu Ananda Devi Nugraha, S.IP., M.E., is a lecturer and researcher in the Department of Economics at the Faculty of Economics and Business, State University of Makassar. Her academic interests cover development studies, political economy, international economics, and cultural economics. Her research examines how governance, policy, and cultural dynamics intersect to shape sustainable and inclusive development. She is particularly focused on understanding how cultural values and institutional structures influence economic transformation in developing countries, with a special emphasis on the Southeast Asian context.

Andi Nur Wahyuningsih, Universitas Negeri Makassar

Andi Nur Wahyuningsih, S.E., M.Si., is a lecturer in the Department of Economics at the Faculty of Economics and Business, State University of Makassar. Her academic and research interests include Human Resource Economics, Population Economics, Labor Economics, and Development Economics, with a focus on how demographic and labor dynamics drive sustainable economic growth. She is actively involved in teaching, research, and community service, contributing to the advancement of economic scholarship and the development of evidence-based policies in Indonesia.

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