AN INSTITUTIONAL PERSPECTIVE ON DIGITAL ENTREPRENEURSHIP IN INDONESIA: CHALLENGES AND SUPPORT MECHANISMS

Digital entrepreneurship has increasingly been recognized as a key driver of economic transformation in emerging economies, including Indonesia. The rapid diffusion of digital technologies creates opportunities for innovation, market expansion, and economic inclusion, while simultaneously generating complex institutional challenges. This article aims to analyze the role of institutional challenges and institutional support in shaping the dynamics of digital entrepreneurship in emerging economies, with a particular focus on the Indonesian context. This study employs a systematic literature review of reputable academic journals, policy reports, and institutional publications related to digital entrepreneurship and institutional perspectives. The findings indicate that institutional uncertainty, regulatory fragmentation, limited institutional capacity, constrained access to finance, as well as gaps in digital literacy and infrastructure remain major barriers to the development of digital entrepreneurship. Conversely, institutional support through innovation-oriented policies, incubation and acceleration programs, digital infrastructure development, and cross-sector collaboration plays a crucial role in fostering a more enabling environment for digital entrepreneurs. This article highlights the relevance of an institutional approach for understanding digital entrepreneurship in Indonesia and offers theoretical and practical implications for strengthening an inclusive and sustainable digital entrepreneurial ecosystem.