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Purpose: This paper aims to elaborate the reasons why Indonesia needs Law on Fintech. This paper also identifies the flaws in the existing regulations and policies on Fintech, and it also proposes an ideal framework for a fintech law as a strategy to strengthen consumer protection and to accelerate the growth of the digital economy in Indonesia. Design/methodology/approach: This is normative research with a legal approach. Data were collected through a literature study and analyzed using legal norm method. Findings: The promising potential and growth of the fintech industry in Indonesia need to be supported by a sound legal framework in the form of Indonesian Law. In regards to fintech, Indonesia does not yet have a specific law on fintech. Existing regulations in the Bank of Indonesia Regulations (PBI) and Indonesia Financial Services Authority Regulations (POJK) only regulate the technical aspects of the industry, thus providing a less sound legal power. Bank of Indonesia (BI) and Indonesia Financial Services Authority (OJK) have limited authority in the making of regulations and the regulations produced by these institutions cannot stipulate criminal provisions. This results in inadequate consumer protection measures. The Investment Alert Task Force reported 2,018 illegal P2P lending, 472 illegal investment companies and 69 illegal pawnbrokers. The accumulation of online lending transactions in December 2019 reached a total of IDR81.50tn, seeing a 259.56% increase from the previous year. Meanwhile, the amount of bad debt reached IDR13.6tn, seeing a 169.48% increase. These reasons illustrate how urgently Indonesia needs Fintech Law. Research limitations/implications: This research only examines the existing Fintech regulations in Indonesia. The approach method used is normative legal research. Practical implications: This research is expected to be useful for The House of Representatives of the Republic of Indonesia (DPR), the Ministry of Law and Human Rights, the Indonesia Financial Services Authority (OJK) and Bank of Indonesia (BI) in drafting the Fintech Law. Social implications: This research is expected to increase protection for consumers, investors and providers of fintech services and accelerate the growth of the digital economy in Indonesia. Originality/value: Regulating fintech in the Indonesian Law is meant to give legal certainty and better legal protection for consumers, investors and providers of fintech services. Seeing that the value of the Indonesian digital economy in 2019 has reached USD40bn (approximately IDR586tn), Indonesia is philosophically, juridically and sociologically in urgent need of Fintech Law. [ABSTRACT FROM AUTHOR]

An increase in current investment in the digital economy of Indonesia is needed to leverage the potential of human capital more effectively for the country to experience healthier economic growth. Company stake holders and government policy makers that are directly affected by the Indonesian economy can leverage the benefits provided by the digital economy segment to invest in human capital and stimulate economic growth through socio-economic support. An analysis of Indonesia's socio-economic situation in 2020 is conducted by analyzing trends in the population's economic abilities, digital data connectivity, and education levels, then comparing the utilization of these resources to population case studies, social and economic theories, and documented research of government and private organizations. Human capital investment parameters were chosen based on previous economic studies which revealed that investing in the human capital of a country's population promotes economic growth through means of economic empowerment, education, and technological advancement of the common population. This paper samples statistics from 2017 up to the first quarter of 2020 of the digital economy and labor market. In addition, this paper provides some review of the socio-economic impact of the COVID-19 pandemic as it relates to investing in human capital to stimulate economic growth. Most of the statistics used in this study are sourced from federal agencies and some are sourced from private organizations. Comparative analysis of the statistics reveals that services from the digital economy provide virtual presence; social connectivity; and data availability, access, and utilization. Also, financing endeavors of the country's human capital through Peer to Peer (P2P) lending and investing in the education of human capital is important to stimulate economic growth. Furthermore, productive gains in business operations can increase across Indonesia's industries if the skillset of workers currently in the labor market can be advanced through accessible training, such as online learning and certification platforms. Last, reforming and investing more in the accessibility and quality of education to the common population, even at a young age, can effectively develop individuals to create and maintain competitive advantages across Indonesia's industries in the global and local markets. [ABSTRACT FROM AUTHOR]

The development of information technologies and the massive generation of data in today's digital world provides new opportunities for official statistics. Big data, especially produced by a marketplace have a great potential to produce a list of online shops. The aim of this paper is to develop an online shop sampling frame from marketplace data. Using the shop and item datasets, an item-level data algorithm is developed to determine whether a shop is active or not to be included in the frame. In this study, the focus is for online shops in Jakarta Province, Indonesia. The algorithm is built using divide and conquer principle and statistical method. The frame produced consists of 13 attributes such as Shop ID, number of items, annual revenue, shop types, Business scale classification and the location (URL and physical address). The frame contains of 101,443 active online shops which most of it are micro enterprises. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is two-fold: to explore the legal issue of the importance of personal data protection in the digital economy sector and to propose a legal framework for personal data protection as a consumer protection strategy and accelerate the digital economy. Design/methodology/approach: This study is legal research. The research approach used was the comparative approach and statute approach. The legal materials used are all regulations regarding personal data protection that apply in Indonesia, Hong Kong and Malaysia. The technique of collecting legal materials is done by using library research techniques. Findings: The value of Indonesia's digital economy is the biggest in the Southeast Asia region, but data breach is still a big challenge to face. The Indonesian Consumers Foundation (Yayasan Lembaga Konsumen Indonesia) recorded 54 cases of a data breach in e-commerce, 27 cases in peer-to-peer lending and 5 cases in electronic money. Based on the results of a comparative study with Hong Kong and Malaysia, Indonesia has yet no specific Act that comprehensively regulates personal data protection. Indonesia also does not have a personal data protection commission. Criminal sanctions and civil claims related to data breaches have not yet been regulated. Research limitations/implications: This study examines the data breach problem in the Indonesian digital economy sector. However, the legal construction of personal data protection regulations is built on the results of a comparative study with Hong Kong and Malaysia. Practical implications: The results of this study can be useful for constructing the ideal regulation regarding the protection of personal data in the digital economy sector. Social implications: The results of the recommendations in this study are expected to develop and strengthen the protection of personal data in the Indonesian digital economy sector. Besides aiming to prevent the misuse of personal data, the regulation aims to protect consumers and accelerate the growth of the digital economy. Originality/value: Indonesia needs to create a personal data protection act. The act should at least cover such issues: personal data protection principles; types of personal data; management of personal data; mechanism of personal data protection and security; commission of personal data protection; transfers of personal data; resolution mechanism of personal data dispute and criminal sanctions and civil claims. [ABSTRACT FROM AUTHOR]

This paper aims to identify the impact of the digital economy, the so-called Information and Communication Technology (ICT) sectors, on output growth, CO2 emission, and income distribution in Indonesia. These indicators are so-called green economy indicators. The method of analyzing the output and value-added multiplier of the ICT sectors and the impact of ICT sectors on CO2 emission and income distribution is based on input-output analysis. The multiplier, elasticity, and Miyazawa income distribution analysis will be used. The ICT sectors have high output and value-added multipliers. This condition suggests that any change in the final demand, such as investment in these sectors, will highly impact the output and value-added. Regarding CO2 emission, the ICT sectors contributed to less emission and are mostly regarded as insensitive to CO2 emission, except three of the ICT sectors have elasticity above the average. The impact of the ICT development sectors can worsen income distribution. Policy measures should consider the implication of ICT development as the critical sector with the potential impact of worsening income distribution. Therefore, the government is suggested to encourage ICT sectors with extra concern for social inclusivity to achieve a green economy. [ABSTRACT FROM AUTHOR]

The confluence of technological innovations in computation and communications has expanded the scope and increased the intensity of algorithmic applications in markets. Policymakers and regulators are increasingly concerned about tacit collusion among sellers using algorithmic pricing in concentrated markets driven by digital platforms with network effects. Indonesia's competition regulators have expressed similar concerns and noted the need for a greater understanding of the impact of algorithmic pricing, including the detection of anti-competitive business practices. [ABSTRACT FROM AUTHOR]

Extant literature has identified how the digital economy has transformed the types of resources available to creative businesses, both tangible and intangible. Since previous research on the digital economy's influence over these resources is limited, yet remains pertinent in reshaping the resource configuration. By analyzing 25 articles, we identified and explored how resource allocation of the creative businesses shifts. As it is driven by the digital economy, which contributes to and shapes the overall digital economy. The findings highlight (1) types of resources in the creative businesses; (2) challenges and opportunities faced by creative businesses; (3) impact of digital economy on creative businesses' resource allocation strategies. [ABSTRACT FROM AUTHOR]

Indonesia has great potential for development in the digital economy, but the behavior of social media users has not yet had an impact on it. The purpose of this study was to explore the behavior of social media users in conducting digital economic transactions. The method used was descriptive qualitative, with eight subjects selected by purposive sampling by prioritizing the credibility of the informant. The results showed that the development of the digital economy was supported by existing technological developments. However, the behavior of social media users is still diverse, some have a positive influence, and some have a negative influence, so there is a need for government intervention in providing a platform, direction, and also supervision in conducting digital translation. Wider public awareness is also needed to improve the digital economy in a more positive direction. [ABSTRACT FROM AUTHOR]

Limited tax collection authority in local self-governments hampers revenue generation in rural regions with smaller populations and limited commercial activity, while the growth of the digital economy further complicates tax collection for local governments. The objective of this study is to examine the challenges encountered by both the central and local tax administrations in Indonesia when implementing consumption-based taxation, especially in light of the increasing prevalence of digital transactions. The study reveals that the shift from traditional to digital transactions is likely to result in conflicting taxing rights between central and local governments. Local governments are typically entitled to a share of taxes on certain forms of consumption, such as accommodation, food delivery, and entertainment. However, the use of digital platforms to provide these services has significantly reduced the local government’s share of tax revenue. This issue is exacerbated when the central tax administration, with its competitive advantage, administers the transaction alongside the broader value-added tax object. In addition to the unclear tax-sharing arrangement, the underlying problem consists in the inadequate coverage of all digital transactions, potentially leading to revenue leakage and double non-taxation. [ABSTRACT FROM AUTHOR]

Purpose : Tax authority have faced one of the challenges collecting tax revenue during the Covid-19 pandemic in decreasing of the economy will potentially leads firms in financial distress. Financial distress motivated firms to engage tax avoidance. Moreover, activities in the digital economy that are growing rapidly could be a challenge to prevent tax avoidance. Thus, this research intends to investigate how the Covid-19 pandemic affects associations between businesses that engage in digital economy activities and tax avoidance on Indonesian public enterprises. Method : The study used sample of 250 firms which are listed on Indonesia Stock Exchange (BEI) in 2018-2021 and conducted using difference-in-difference method. Findings : The study finds empirical evidence that digital economy activities positively associated with effective tax rate. Nevertheless, the Covid-19 pandemic weakened this association. Novelty : Previous studies partially examined the relationship between the COVID-19 pandemic on tax avoidance and the digital economy on tax avoidance. Quantitative researches about digital business are also mainly carried out in developed countries considering that digital economic activities have been massively carried out in developed countries. This study will complement previous studies where the Covid-19 pandemic and economic activity will be interacted with and linked to corporate tax avoidance behaviour, especially in Indonesia. [ABSTRACT FROM AUTHOR]

Consumption and production of digital goods and services have increased in Indonesia for the past ten years. A fast-growing e-commerce sector and an increase in digital payments supported the strong growth of the digital economy. Although Internet and digital transactions emerged in the late 1980s, the regulatory framework governing digital activities was only introduced in 2008 with the enactment of the Law on Electronic Information and Transactions. The government of Indonesia has relaxed foreign capital restrictions and provided fiscal incentives for digital businesses. Indonesia has also made commitments related to digital business in recent trade agreements in terms of the mutual recognition of consumer protection and cross-border data transfer. To encourage the use of ICT in public service, Indonesia introduced the 100 Smart City programme and has begun the implementation of electronicbased public service and operation (e-government). The government accelerated digital transformation during the COVID-19 pandemic by increasing the budget allocations for ICT in 2020 and 2021. To further accelerate digital transformation, the government needs to focus on digital literacy, nationwide integrated infrastructure, regulatory and institutional mechanisms and the innovation ecosystem. [ABSTRACT FROM AUTHOR]

The contribution of SMEs to economic growth is supported by the development of the sharia economy by the government, making SMEs one of the main pillars in Indonesia's economic development. This study aimed to analyze the influence of the digital economy, financial literacy, human capital, the role of Islamic financial institutions, government support for strengthening the Islamic economy and the Islamic financial performance of SMEs in Makassar City, Indonesia. This study used a quantitative method with a survey approach. Data were obtained through questionnaires distributed to 350 respondents with a sampling method. The results of this study indicated that the strengthening of the sharia economy, the Islamic financial performance of SMEs, economic digitalization and financial literacy are determined by factors of human capital, the role of Islamic financial institutions and government support. Regarding human capital, the roles of Islamic financial institutions and government support affect the Islamic financial performance of SMEs with a coefficient of determination of 58.5%. Human capital, the role of Islamic financial institutions, government support and financial performance have a positive correlation with the strengthening of the sharia economy with a coefficient of determination of 71.6%. This study supports the improvement of government policies and the construction of financial facilities in improving the Islamic financial performance of SMEs and encourages the strengthening of the sharia economy in Makassar City, South Sulawesi, Indonesia. The limitation of this research is that the research object was only carried out on SMEs in Makassar City; thus, similar research can be increased at the national level to describe the strengthening of the sharia economy and the improvement of the financial performance of SMEs as a whole in Indonesia. [ABSTRACT FROM AUTHOR]

This study examines whether the rise in cybercrime activity in Indonesia is associated with the perceived benefits, convenience, and risk of a cashless society. In doing so, we apply Structural Equation Modelling (SEM) to a total sample of 200 Indonesian respondents who have been victims of cyber fraud. The results indicate that the high cybercrime rate, including phishing, distributed denial-of-service (DDoS), and social engineering, is positively associated with the perceived benefits and risks of transacting online. The rise in cases of DDoS can particularly be linked to consumers' increasing perceptions of convenience in undertaking cashless transactions. The findings suggest that more stringent cyber law enforcement needs to be implemented. Digital technologies will continue to improve, and more consumers will do transactions digitally. With increasing volumes of cashless transactions, the risk of cyber attacks will likely increase. Stakeholders need to strengthen data privacy and provide a secure environment for customers. International cooperation should be promoted through the establishment of virtual world law as economic activities and cybercrime risks now become borderless. [ABSTRACT FROM AUTHOR]