The digital economy impacts on India and Indonesia based on knowledge-economy index

Abstract

Digital revolution has brought the digital economy era in many countries as a part of knowledge-based economy. Themed in the digitalization, the research aims to complement previous qualitative comparative research between India and Indonesia. Through the research questions,”What are the key impacts from the digital revolution towards developing countries?”,”How does India utilize digital revolution to create the national digital ecosystem that benefits India’s economic development?”, and “Why Indonesian government under Jokowi’s administrative can make Digital India as an inspiration thus Indonesia can further implement digital policies that transform its economic development?”, the research analyzes the six key areas in digital economy landscape that impact the economic growth in developing countries. The research uses the qualitative method in comparative policy analysis and causal-process tracing method to benchmark between two primary actors, India and Indonesia’s digital economy landscape. Rooted on the neoliberalism theory, Knowledge-Economy Index (KEI tool) developed by World Bank, public-private partnership and foreign direct investment concepts, this research gives theory-relations between the contemporary reality and the ideal context of digital economy. Digital economy brings a new set of economic and political opportunities and challenges towards developing countries as it reinvents new business models to create entirely new market and industries. Throughout the research, it is found India’s government involvement in establishing a well-articulated national digital strategy that also aptly mirrors its current position in the Knowledge-Economy Index is necessary to shape its conducive national digital ecosystem and knowledge-economy policy. Finally, this research gives an ample of relevant lessons and facts from the digital economy landscape in India to be properly implemented in Indonesia. At the International Relations context, the research is expected to broaden the perspective of comparative politic study, that policy focus on digital economy can be compared between states.