IMPACT OF E-COMMERCE AND INTERNET USERS ON INDONESIA'S ECONOMIC GROWTH

Abstract

Economic growth refers to the expansion of economic activities that enhance the production of goods and services, ultimately improving societal welfare. It serves as a crucial indicator for analyzing a country's economic development, typically measured by the change in Gross Domestic Product (GDP) between consecutive years. Various indicators can assess Indonesia's economic condition, with national income being a significant metric supported by accurate GDP data, categorized into current and constant prices. Over time, developments have transformed the Indonesian economy, with electronic media becoming increasingly prevalent. The rise of electronic media has facilitated broader and more effective transactions through e-commerce. Identifying the impact of these transactions is essential to understand their relationship with economic growth, which is vital for enhancing the welfare of Indonesia's population. Additionally, the growth of internet users significantly influences the economy. As internet user numbers rise annually amid digitalization, the government is expected to promote wider internet access across the nation. The internet allows individuals to access vital information for business, education, and recreation, contributing to economic growth. Thus, this research analyzes the impact of e-commerce transaction value and internet users on Indonesia's economic growth from 2013 to 2023, using quantitative secondary data and multiple regression analysis.