Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption

Digital transformation has emerged as a crucial component of Indonesia’s national development strategy, recognized for its capacity to stimulate economic growth, enhance public services, and improve social welfare. However, the current approach tends to be technocratic, often overlooking vital lega...

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Main Authors: Bayu Dwi Anggono, Rofi Wahanisa, Aulia Oktarizka Vivi Puspita Sari A.P, Septhian Eka Adiyatma
Format: Article
Language:English
Published: Faculty of Sharia UIN Prof. K.H. Saifuddin Zuhri Purwokerto 2025-05-01
Series:Volksgeist
Subjects:
Online Access:https://ejournal.uinsaizu.ac.id/index.php/volksgeist/article/view/12211
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author Bayu Dwi Anggono
Rofi Wahanisa
Aulia Oktarizka Vivi Puspita Sari A.P
Septhian Eka Adiyatma
author_facet Bayu Dwi Anggono
Rofi Wahanisa
Aulia Oktarizka Vivi Puspita Sari A.P
Septhian Eka Adiyatma
author_sort Bayu Dwi Anggono
collection DOAJ
description Digital transformation has emerged as a crucial component of Indonesia’s national development strategy, recognized for its capacity to stimulate economic growth, enhance public services, and improve social welfare. However, the current approach tends to be technocratic, often overlooking vital legal, institutional, and justice-related issues. This study critically assesses examine the adequacy and coherence of Indonesia’s legal and institutional frameworks governing digital transformation to promote inclusive economic growth and social welfare. It identifies regulatory and institutional gaps and recommends strategic reforms for equitable digital governance. Employing a socio-legal methodology that merges doctrinal legal analysis with interdisciplinary insights from political science, economics, and sociology, this research evaluates key legal instruments and institutional practices, alongside global best practices, to determine Indonesia’s readiness for digital transformation. The findings indicate that Indonesia’s progress is hampered by fragmented and reactive legal frameworks, notable regulatory gaps—particularly in data protection and labor rights within the gig economy—and weak institutional coordination. These issues lead to policy inconsistencies, implementation delays, and the exacerbation of existing inequalities. To address these challenges, this study advocates for a systemic reconfiguration of digital governance grounded in democratic principles and inclusive participation. It proposes six strategic pillars: infrastructure, digital human capital, business climate and cybersecurity, research and innovation, funding and investment, and robust legal-regulatory frameworks, to ensure a just and sustainable digital transition.
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issn 2615-174X
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language English
publishDate 2025-05-01
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spelling doaj-art-78aafca59dfa440ea3b62af8317608392025-08-20T03:05:42ZengFaculty of Sharia UIN Prof. K.H. Saifuddin Zuhri PurwokertoVolksgeist2615-174X2615-56482025-05-018110.24090/volksgeist.v8i1.12211Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of DisruptionBayu Dwi Anggono0Rofi Wahanisa1Aulia Oktarizka Vivi Puspita Sari A.P2Septhian Eka Adiyatma3Faculty of Law, Universitas Jember, IndonesiaFaculty of Law, Universitas Negeri Semarang, IndonesiaFaculty of Law, Universitas Negeri Semarang, IndonesiaFaculty of Law, Universitas Diponegoro, Indonesia Digital transformation has emerged as a crucial component of Indonesia’s national development strategy, recognized for its capacity to stimulate economic growth, enhance public services, and improve social welfare. However, the current approach tends to be technocratic, often overlooking vital legal, institutional, and justice-related issues. This study critically assesses examine the adequacy and coherence of Indonesia’s legal and institutional frameworks governing digital transformation to promote inclusive economic growth and social welfare. It identifies regulatory and institutional gaps and recommends strategic reforms for equitable digital governance. Employing a socio-legal methodology that merges doctrinal legal analysis with interdisciplinary insights from political science, economics, and sociology, this research evaluates key legal instruments and institutional practices, alongside global best practices, to determine Indonesia’s readiness for digital transformation. The findings indicate that Indonesia’s progress is hampered by fragmented and reactive legal frameworks, notable regulatory gaps—particularly in data protection and labor rights within the gig economy—and weak institutional coordination. These issues lead to policy inconsistencies, implementation delays, and the exacerbation of existing inequalities. To address these challenges, this study advocates for a systemic reconfiguration of digital governance grounded in democratic principles and inclusive participation. It proposes six strategic pillars: infrastructure, digital human capital, business climate and cybersecurity, research and innovation, funding and investment, and robust legal-regulatory frameworks, to ensure a just and sustainable digital transition. https://ejournal.uinsaizu.ac.id/index.php/volksgeist/article/view/12211Digital economy; social justice; digital inclusion; social welfare
spellingShingle Bayu Dwi Anggono
Rofi Wahanisa
Aulia Oktarizka Vivi Puspita Sari A.P
Septhian Eka Adiyatma
Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption
Volksgeist
Digital economy; social justice; digital inclusion; social welfare
title Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption
title_full Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption
title_fullStr Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption
title_full_unstemmed Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption
title_short Interrogating the Legal Foundations of Digital Transformation: Balancing Economic Growth and Social Welfare in the Era of Disruption
title_sort interrogating the legal foundations of digital transformation balancing economic growth and social welfare in the era of disruption
topic Digital economy; social justice; digital inclusion; social welfare
url https://ejournal.uinsaizu.ac.id/index.php/volksgeist/article/view/12211
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