The Role of the Digital Economy in The Economy, Education, and Health in Indonesia

Abstract

This study examines the digital economy shown by internet users with economic growth, education, health, and inflation.This research examines data from 2000 until 2020 to be able to produce "autoregressive vectors" that may be used to evaluate the causal link between variables. Based on secondary data from the World Bank, the following multivariate regression model was used to investigate the causal link between Internet Users, Gross Domestic Product, Education, Health and Inflation in Indonesia. The results of this study are quite surprising where technological literacy in Indonesia actually suppresses GDP, this shows that the use of the internet for Indonesian people in production is not yet optimal. Or most Indonesians use the internet as entertainment and consume digital products from abroad so internet technology literacy suppresses GDP. However, internet literacy supports education in Indonesia where education in Indonesia uses internet technology massively. Education itself encourages internet literacy in Indonesia significantly. However, the literacy of internet users actually suppresses the health sector where the health sector in Indonesia during the research period was dominated by offline and the health sector did not provide a significant boost to internet literacy in Indonesia. The digital economy in Indonesia has been proven to suppress inflation, although not significantly. This illustrates that the digital economy has the potential to suppress inflation and in the current case of Indonesia, the digital economy is not yet optimal currently the majority of internet users in Indonesia are users or consumers of digital products from countries outside Indonesia so they have not been able to encourage domestic economic growth.