The Use of digital technology by Indonesian Smes in the Digital Economy

Abstract

In recent years, the use of digital technology has become increasingly prevalent among Indonesian companies and SMEs, enabling them to operate globally, improve operational efficiency, and enhance customer engagement. This shift is driven by factors like internet penetration, e-commerce popularity, and affordable digital tools. The digital economy has expanded, allowing SMEs to promote their products and services through online platforms. The adoption of digital platforms has transformed business operations and contributed to the growth of Indonesias digital economy. However, challenges like digital skills gaps, fear of technological adaptation failure, and infrastructure limitations need to be addressed for the sustainable growth of digital platforms for Indonesian SMEs.This research study aims to use secondary data from the Global Entrepreneurship Monitor (GEM) to provide an understanding of the relationship between entrepreneurship and national economic development. GEM provides a source of data on attitudes towards entrepreneurship, start-up and established business activities, and entrepreneurs aspirations for their businesses. A quantitative approach will be used to analyze this data and examine the impact of technological adaptation by Indonesian SMEs, exploring opportunities and their contribution to the digital economy. Data will be evaluated using SPSS V.26 and AMOS V.26 software for greater accuracy and understanding.