The Impact of Digital Economy Development on Indonesia's Export Trade

The fast growth development of the digital economy has transformed international trade, providing new opportunities to expand export, especially in a developing country like Indonesia. Using panel data from 34 Indonesian provinces between 2013-2023, this study explores the impact of digital economy growth on export in each province of Indonesia. A digital economy (DIG) measurement method is constructed using the entropy method, based on indicator such as informatization, internet infrastructure, and digital transactions. The empirical analysis uses regression models. The results show that statistically significant and positive relationship between digital economy development and export volume across Indonesian provinces. Based on regional observation, the western and central Indonesia region shows the positive results, while eastern regions have negative effects. The study concludes with policy recommendation to increase Indonesia’s export competitiveness in global market.