THE IMPACT OF E-COMMERCE ON GROSS REGIONAL DOMESTIC PRODUCT IN INDONESIA IN 2013-2024

Abstract

This comprehensive study seeks to analyze the significant impact of digital developments on Indonesia's Gross Regional Domestic Product (GRDP), focusing on two main factors: the value of e-commerce transactions and the number of internet users from 2013-2024. This study applies a quantitative approach through a multiple linear regression model with the Ordinary Least Squares (OLS) technique, carefully processing time series data to ensure robust analysis results. The study’s results prove a positive correlation between the two digital variables and Indonesia's GRDP, where the increase in e-commerce transactions and the growth in internet users show a significant contribution to the expansion of Indonesia's GRDP. This correlation emphasizes the transformative role of digital adoption in driving economic growth in various sectors. Analysis revealed that the digital economy contributes to Indonesia's GRDP and shows consistent growth patterns, especially in urban areas with digital infrastructure and a high internet penetration rate. Both variables -the value of e-commerce transactions and the number of internet users- simultaneously contributed 65.21 percent to Indonesia's GRDP.