Digital Economy Readiness and Regional Competitiveness in Indonesia: Evidence from EV-DCI and Provincial PDRB per Capita
Keywords:
Digital economy readiness; EV-DCI; Regional competitiveness; Digital transformation; Regional economic development; Indonesia.Abstract
Purpose This study examines the influence of digital economy readiness on regional competitiveness across Indonesian provinces. It aims to determine whether higher levels of digital readiness contribute to stronger regional economic performance and to provide empirical evidence supporting digital transformation as a strategic driver of sustainable regional development.
Methods This study employed a quantitative explanatory research design using cross-sectional secondary data from all 38 Indonesian provinces. Digital economy readiness was measured using the East Ventures Digital Competitiveness Index (EV-DCI) 2024, while regional competitiveness was represented by provincial Gross Regional Domestic Product (GRDP) per capita published by Statistics Indonesia (BPS). The data were analyzed using descriptive statistics, Pearson correlation analysis, classical assumption tests, simple linear regression, and hypothesis testing with IBM SPSS Statistics Version 29.
Findings The results indicate a strong positive relationship between digital economy readiness and regional competitiveness. Provinces with higher EV-DCI scores consistently demonstrate stronger economic performance, suggesting that digital readiness functions as an important structural determinant of regional competitiveness. The findings further emphasize that digital infrastructure, institutional readiness, human capital, and MSME digital transformation collectively strengthen inclusive economic growth and enhance long-term regional resilience.
Research Implications The study highlights the importance of integrated digital development policies that simultaneously strengthen digital infrastructure, digital skills, institutional capacity, and innovation ecosystems. These findings provide practical guidance for policymakers in designing evidence-based strategies to reduce regional disparities and accelerate sustainable digital economic development.
Originality This study contributes to the regional competitiveness literature by providing provincial-level empirical evidence from Indonesia that positions digital economy readiness as a multidimensional ecosystem supporting sustainable regional economic development through digital transformation.
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References
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