The transformative impact of information and communication technology on regional economies in Indonesia
DOI:
https://doi.org/10.12928/optimum.v15i2.12529Keywords:
Information and Communication Technology (ICT), Economic growth, Panel dataAbstract
The development of information communication technology (ICT) has made it easier for people to carry out activities. People's dependence on ICT has become greater, which impacts increasing per capita income, business efficiency, and costs. The impact of ICT causes the flow of goods and services to be more efficient so that economic growth can be faster. This study aims to analyze the effect of ICT on economic development across all provinces in Indonesia over the period 2012–2022. The data used in this study from the Central Bureau of Statistics and the DJPK or the Ministry of Finance of Indonesia and used Generalized Least Squares (GLS) model approach. The results shows the Information and Communication Technology Development Index as a proxy for ICT, government spending, and investment significantly affected economic growth in all provinces. The labor variable does not significantly affect economic growth. The investment variable has the power prediction on economic growth. Implication of the study the government needs to build digital infrastructure and government budget is more focused on digital literacy.
References
Adeleye, B. N., Arogundade, S., & Mduduzi, B. (2023). Empirical analysis of inclusive growth, information and communication technology adoption and institutional quality. Economies, 11(4), 1-21. https://doi.org/10.3390/economies11040124
Afrianti, N. L., Syafitri, Anisa, M., & Bintang, K. I. (2024). Analysis of human capital for infrastructure development relation to industrialization in Indonesia. Optimum: Jurnal Ekonomi Dan Pembangunan, 14(2), 177-188. https://doi.org/10.12928/optimum.v14i2.9758
Agustina, N., & Pramana, S. (2019). The impact of development and government expenditure for information and communication technology on Indonesian economic growth. Asian Journal of Business Environment, 9(4), 5-13. https://doi.org/10.13106/jbees.2019.vol9.no4.5
Badan Pusat Statistik. (2022). Indeks Pembangunan Teknologi Informasi dan Komunikasi 2022.
Bahrini, R., & Qaffas, A. A. (2019). Impact of information and communication technology on economic growth: Evidence from developing countries. Economics, 7(1), 1-13. https://doi.org/10.3390/economies7010021
Bergantino, A. S., Intini, M., & Nademi, Y. (2025). Rethinking poverty: An econometric analysis of the role of ICT poverty in a global context. Telecommunications Policy, 49(1). https://doi.org/10.1016/j.telpol.2024.102876
Farooqi, Z. U., Makhdum, M. S., & Yaseen, M. R. (2020). Impact of information and communication technology (ICT) investment on different components of human development in developing countries. International Review of Management and Business Research, 9(4), 108-129. https://doi.org/10.30543/9-4(2020)-11
Febrianto, E. N. (2020). Hubungan sektor informal dan pertumbuhan ekonomi. Jurnal Pendidikan Ekonomi: Jurnal Ilmiah Ilmu Pendidikan, Ilmu Ekonomi Dan Ilmu Sosial, 14(1), 151-158. https://doi.org/10.19184/jpe.v14i1.16620
Hakim, L., Bintariningtyas, S., Juwita, A. H., & Mulyanto. (2024). Mitigation of regional poverty in East Kalimantan: A village level panel data analysis. Optimum: Jurnal Ekonomi Dan Pembangunan, 14(2), 237-243. https://doi.org/10.12928/optimum.v14i2.8691
Hayat, N. Z., Kurniawan, M. L. A., & Wong, W.-K. (2023). The role of inequality in Indonesia: Does fiscal decentralization matter? Jurnal Ekonomi Dan Studi Pembangunan, 15(2), 111-120. https://doi.org/10.17977/um002v15i22023p111
Hindrayani, A., Rina, L., & Naufalin, L. R. (2024). Impact of Indonesia's ICT development on economic growth. Jurnal Pendidikan Ekonomi & Bisnis, 12(1), 1-10. https://doi.org/10.21009/JPEB.012.1.1
Ibrahim, R. A., Sidiq, F., & Azahra, A. S. (2023). Bureaucratic reform and clean governance: Efforts towards social justice and sustainable economic growth in Indonesia. International Journal of Humanities, Law, and Politics, 1(3), 49-53. https://doi.org/10.46336/ijhlp.v1i3.33
Ibrahimi, A. E., & Fetai, B. (2022). The Impact of ICT on the GDP growth of Western Balkan countries. SEEU Review, 17(1), 105-119. https://doi.org/10.2478/seeur-2022-0044
Kamilla, S., Sasana, H., & Sugiharti, R. R. (2021). Pengaruh teknologi informasi dan komunikasi terhadap pertumbuhan ekonomi di Indonesia tahun 2012-2019. DINAMIC: Directory Journal of Economic, 3(2), 619-631. https://doi.org/10.24036/jkep.v2i3.10291
Majeed, M. T., & Ayub, T. (2018). Information and communication technology (ICT) and economic growth nexus: A comparative global analysis. Pakistan Journal of Commerce and Social Sciences (PJCSS), 12(2), 443-476.
Nurcahyo, Y. B., Fatin, S., & Reza, M. F. (2025). Investigating the theory of environmental Kuznets curve on environmental quality index in Indonesia. Optimum: Jurnal Ekonomi Dan Pembangunan, 15(1), 111-118. https://doi.org/10.12928/optimum.v15i1.8752
Pradhan, R. P., Mallik, G., & Bagchi, T. P. (2018). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review, 30(1), 91-103. https://doi.org/10.1016/j.iimb.2018.01.001
Salim, A., Wen, J., Bello, A. U., Lubis, F. R. A., Khoirudin, R., Khasanah, U., Sukarniati, L., & Nasir, M. S. (2024). Does information and communication technology improve labor productivity? Recent evidence from the Southeast Asian emerging economies. Growth and Change A Journal of Urban and Regional Policy, 55(1). https://doi.org/10.1111/grow.12708
Xing, Z. (2018). The impacts of information and communications technology (ICT) and e-commerce on bilateral trade flows. International Economics and Economic Policy, 15(3), 565-586. https://doi.org/10.1007/s10368-017-0375-5
Yovani, D. S., & Irfan, M. (2024). Analisis pengaruh infrastruktur terhadap pertumbuhan ekonomi di Sumatera Barat. Media Riset Ekonomi Pembangunan (MedREP), 1(3), 356-364.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Adhitya Wardhana, Bayu Kharisma, M. Zidan Fauzy, Adrian Kevianta Anggana
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
