Social Media as a New Arena of Power in Indonesia: A Political Economy Perspective in the Digital Platform Era

This research explores the impact of social media on Indonesian society, highlighting the challenges of global technology company dominance, algorithmic bias, and increasingly complex digital inequality. Social media has developed into a new arena of power that affects various aspects of people's lives, including the formation of public opinion, the distribution of information, and the strengthening of power structures. In the context of political economy, fundamental questions arise about how algorithms designed by digital platforms systematically reinforce social and economic inequalities, especially for marginalized groups who have limited access to technology. This study aims to analyze the dynamics of power in the era of digital platforms, by emphasizing the importance of digital literacy as a strategic step. Digital literacy is seen as able to increase user awareness of use ethics, information accuracy, and more responsible content management. Using a critical paradigm, this research utilizes the theory of media political economy and the concept of digital public space to explore the relationship between social media, economics, and politics. The methodology applied includes a qualitative approach through literature study and content analysis. This study analyzes how data-driven algorithms and business models affect public discourse, as well as their impact on the quality of democracy. The findings show that digital literacy can reduce hoaxes, disinformation, and algorithmic manipulation, while increasing public participation in more constructive discussions. In conclusion, inclusive, participatory, and transparent policies are needed to create a fair social media ecosystem. Social media has the potential to become a public space that strengthens democracy and community engagement equally if it is supported by regulations that prevent the exploitation of technology by dominant actors.