Volume 7, Issue 2, February – 2022 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Digital Economy and Blockchain Technology Using

the SWOT Analysis Model
Rainier Wardhana Hardjanto
British School Jakarta, Indonesia

Abstract:- This study is aimed to see the opportunities for revolution, humans no longer play a significant role and were
the development of the digital economy in the future. The replaced by the sophistication of computers and robots and
Industrial Revolution 4.0 has brought changes to human became familiar with the work contract system. Currently the
life. Not only in technological advancements but also in world is entering the industrial revolution 4.0 which
changing mindsets/paradigms and bringing economic, combines automation and cyber technology. This includes
business and digital investment opportunities. Change is innovations and technologies of big data, cloud computing,
inevitable, sooner or later the development of science and Internet of Things (IoT), artificial intelligence/AI, and
technology (science and technology) will occur, humans advanced robotics. (Edi Wahyu, 2018)
must adapt to changing times. The development of the
digital economy is not only based on things that are Everything related to technology becomes a weapon for
visible to the naked eye, but also things related to the – say the industrial revolution 4.0. The revolution assumes a
metaverse and based on big data, artificial intelligence change in the traditional way of human existence to the
(AI), cloud computing, and advanced robotics. This study modern one. Modern referred to here of course refers to the
also uses a SWOT analysis as an analytical tool to obtain combination of artificial intelligence, technology, and big
comprehensive results regarding the opportunities of the data. In short, everything we do today is highly dependent on
digital economy in the future. The method used in this technology and its respective algorithms. The current
research is a qualitative method using a descriptive technological sophistication in its application to almost all
approach and literature study. The results of the study lines of life has been able to recommend almost all of our
show that the digital economy will continue to develop desires through habits that are recorded algorithmically into
along with the times. Various aspects related to the digital the highway data through the screen of our device without us
economy will continue to develop, such as banking laws knowing it. (Allen, 2006)
and policies. In time, it is possible that digital currency
(cryptocurrency) will be used as a medium of exchange in Everyone is required to be proficient in using
trade. technology. But unfortunately, these suggestions have an
impact and have a somewhat masochistic tendency: studying
Keywords:- Technology, digital economy, industry 4.0, the hard way about their use and then leaving our lives
Indonesian economy blockchain. completely to the technology itself. Many people assume that
they have lived through the industrial revolution 4.0 just
I. INTRODUCTION because they use social media, live streaming video, email,
and other supporting applications. In fact, using it is not
We have entered the 4.0 industrial revolution, and some enough. Because there is something that we forgot:
countries such as Japan have even begun to enter the 5.0 ourselves. What does it mean? When we use any such
industrial revolution, which is marked by radical changes in application, we submit our personal data to the network, and
the global economy. There is an adage that those who adapt it is clearly recorded. So that through a certain algorithm, the
quickly will survive and those who will not be left behind. machine will be able to classify and finally recommend to us
This is a reality that is faced by all of humanity. (Edi Wahyu, in the future what we want, from the music we want to play,
2018) the food we want to order, to the artist we want to watch.

In the history of industrial development, various Who we are, is clearly recorded in the raya data. This is
technological advances and innovations have made human what is called the death of privacy, and this is precisely
work and the production of goods/products more where the crisis of identity as a whole person originates.
sophisticated and efficient. The invention of the steam engine Human identity as a whole is torn apart by digital technology
by James Watt (1776) is believed to be a fundamental change that grips our lives tightly and pulls them into a world where
in the production process from what was previously a hand- we can't just go back to how we used to be. It doesn't stop
based production method to a machine-based production there, the habits of posting everything also form a digital
method. This is the industrial revolution 1.0 where human cultural identity. Digital cultural identity is nothing but
and animal power are replaced by machines. identity-less human identity: Machines know us better than
we know ourselves. We are sucked in by a digital culture that
Afterwards, it developed towards the industrial lulls us to sleep and ultimately shackles us. We become a
revolution 2.0 in the 20th century which was marked by the person who is completely different from reality. We want an
discovery of electrical energy. The production process of identity completely different from ourselves.
goods is increasingly sophisticated, efficient and of higher
quality thanks to the discovery of the assembly line method Indeed, in reality the 4.0 industry has given rise to
using conveyor belt. Furthermore, in the 3.0 industrial various kinds of new technologies which are said to affect

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ISSN No:-2456-2165
human activities in various fields of life. Not just in the field
of technology, but also in other fields such as economics,
social, and politics. (Rudi Hardiansyah, 2019) In the
economic sector, it has been seen how the transportation
service sector is affected by technology from the presence of
online taxis and online motorcycle taxis. The same is true in
the social and political fields. Social interaction becomes
unlimited, because of the ease of access to the internet and
technology. The same is true in the political field. Through
the ease of digital access, people's behavior has shifted. But
behind the conveniences offered, the Industrial Revolution
4.0 has various negative impacts, including the threat of
unemployment due to automation, natural damage due to
industrial exploitation, and the rise of hoaxes due to the easy
dissemination of information.

Reporting from https://www.bkpm.go.id, the Central

Statistics Agency (BPS) reported that Indonesia's economic
growth in the second quarter of 2021 had increased to 7.07 Fig. 1: Graph of Internet Usage in Indonesia
percent on an annual basis (year on year/yoy). Furthermore,
the Indonesian economy in the second quarter of 2021 grew Economic growth in Indonesia is currently reaching an
by 3.31 percent (quarter-to-quarter) from the previous uncertain threshold. This means that economic growth can no
quarter. The improvement in Indonesia's economy in the longer be seen only based on visible assets, but must be seen
second quarter of 2021 was mainly driven by increased from a lens that transcends all of them, or currently known as
performance in exports, household consumption, investment, the metaverse. The term metaverse was used by Neal
and government consumption. This improvement in the Stephenson in 1992 in the science fiction novel Snow Crash.
economy is indeed a good sign, but it is still important to This idea has also been applied in various games with the
ensure that there will not be another decline in the next help of virtual reality.
quarter. One of the things that plays a significant role in
Indonesia's economic growth is investment. Investment If the economy in the past was viewed macro or micro,
performance as one of the growth engines began to increase now it can no longer be viewed on a macro or micro black
as much as 7.54% (year on year/yoy). Since the enactment of and white basis. Macroeconomics or macro-economics itself
the Job Creation Act No. 11 of 2020 and its operational is the study of the economy as a whole. Macroeconomics
guidelines, namely PP No. 5 of 2021 concerning the describes economic changes that affect households,
Implementation of Risk-Based Business Licensing, investors capitalized firms, and the market in general. Macroeconomics
have given positive sentiments to continue to realize their can usually be used to analyze the best way to influence
investments, whether they are in the preparation, construction policy targets such as economic growth, price stability,
or production period. In the April-June 2021 period, employment and to achieve a sustainable balance sheet.
investment went so well that several large companies went (Anascavage, 2018)
through groundbreaking.
The technological innovation that is currently being
One of the fastest growing forms of investment is discussed is blockchain. In economic activity, goods/services
digital investment. Home to 268 million people, Indonesia need to be certified through NFT, then traded in
has around 185 million internet users, which is the fourth cryptocurrencies. Cryptocurrency is a certification of the
largest in the world. Millennial consumers and Generation Z technology mining process as a guarantee of its value. All
– the young group as digital natives who grew up in today's these activities are authentically recorded in a decentralized
technological era – account for the majority of Indonesia's open network called blockchain. Blockchain can also be
internet user population, and are increasingly becoming the understood as a technology development with a digital
main drivers of Indonesia's digital economy growth. system that makes data storage integrated with each other.
According to the National Socio-Economic Survey This system has become popular lately because this system is
(SUSENAS), millennials and Generation Z are estimated to considered to be able to be used in various business sectors
account for around 34 percent and 29 percent, respectively, and tends to be more secure than the previous system.
of Indonesia's total population. At the same time, Indonesian (Haryatmoko, 2022)
consumers also seem very fond of using the internet. One
First introduced by Satoshi Nakamoto in 2008,
study, for example, revealed that about 58 percent of users
Blockchain is simply a digital ledger that records crypto
spend between two and eight hours on the internet, and
transactions. (Anascavage, 2018) Blockchain keeps a record
nearly one-fifth or 20 percent of them spend eight hours or
of virtual currency stored in a database. Each individual
more on the internet each day. The following describes
transaction record, which is often called a block, is then
internet usage in Indonesia.
linked together in a list called a chain by cryptographic
principles. These two words eventually formed a term called
blockchain. So, why is blockchain special and considered

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secure? Because the network in it does not have a central is a term used in an era which has special characteristics in
authority. This means that each individual has the same the form of strong usage of digitalization technology and
facilities in accessing the blockchain network. In addition, artificial intelligence in various aspects of human life,
blockchain is also a system that is safe and protected from including aspects of human life and even education. In a
malicious hands such as hackers. Each new block is linked to journal it is also explained in it that Hoyles and Lagrange
all previous blocks in the cryptographic chain, making it emphasize that this digital technology is something that is
nearly impossible to tamper with. able to offer extraordinary attraction in learning related to the
effectiveness and efficiency of the education system in the
This research focuses on the digital economy, where in world. From some of these explanations, it can be concluded
the digital economy there is blockchain technology which that the industrial revolution 4.0 is an era of change from
over time gets a portion and space to continue to grow in various sectors of life which is marked by rapid
every aspect of the existing business. Blockchain is developments in the field of technology that accelerates the
essentially the antithesis of conventional business standards spread of information or better known as the era of
that put forward only physical evidence. Day by day, human digitization.
thought, culture, and intelligence continue to develop, so that
humans give birth to ways to innovate in order to maintain B. Digital Economy
their existence on this earth. One of the latest pieces of The concept of the digital economy was first introduced
evidence of human innovation is the emergence of by Tapscott (1998), describing a socio political and economic
blockchain technology. system that has characteristics as an intelligence space,
including information, various access to information
II. LITERATURE REVIEW instruments and information processing and communication
capacity. The components of the digital economy that were
A. Industry 4.0 identified for the first time were the ICT industry, e-
The term industrial revolution 4.0 is a term for an idea commerce activities between companies and individuals,
based on the fourth industrial revolution. The term industry digital distribution of goods and services, support for the sale
emerged in Germany in 2011 when the Hannover Fair was of goods, especially systems and services that use the
held (Andre, 2018). Where this German country has a great internet. (Hayness, 2018)
interest in this. Germany aims to be able to always be at the
forefront of the manufacturing world. This industrial Meanwhile, another digital economy concept is the
revolution is one part of its development plan policy, in digitization of information and ICT infrastructure
which the development policy is called the High-Tech (Zimmerman, 2000). This concept is often used to explain the
Strategy 2020. (Erreveles, 2016) Several countries also took global impact of information and communication technology,
part in realizing the concept of this revolution. Although with not only on the internet, but also on the economy. This
different designations or terms, the goal remains the same, concept becomes a view of the interaction between the
namely to be able to increase industrial competitiveness in development of innovation and technological progress and
each country in facing a global market that is so dynamic. In their impact on macroeconomics and microeconomics. The
other countries, this revolution has different designations or digital economy is a sector of the economy that includes
terms, some of which mention Smart Factories, Industrial goods and services when their development, production, sale
Internet of Things, Smart Industry, advanced manufacturing. or supply depends on digital technology. A digital economy
(Erreveles, 2016) development cannot be separated from its characteristics,
namely value creation, products in the form of distribution
In another reference, the 21st century or the trend called channel efficiency, and structures in the form of personal and
the 4.0 era is known as the era of knowledge. In this era, all desired services. In Indonesia, the Indonesian Bank real time
alternative efforts to meet the needs of life in various gross settlement (RTGS) system is an electronic transfer
contexts are more based on knowledge. Both in the fields of system between participants in the rupiah currency whose
education, economy, society and industry. This was triggered settlement is carried out in real time, per individual
by the birth of computer science and technology. In addition, transaction. The amount is quite significant, moving between
in this era there are also several impacts, including Rp. 3 trillion to Rp. 4 trillion per month. This can be
information available anywhere that can be accessed at any categorized as an e-banking transaction that is part of the
time, faster computing, automation that replaces routine work digital economy. Similarly, e-banking transactions for ATM
and communication that can be done from anywhere and cards and debit cards per month in 2007 covered between Rp.
anytime. In a journal, several opinions were presented about 247 billion and Rp. 293 billion per month. The number of
this 4.0 revolution, some of which are according to Angelia credit card transactions via the internet is also significant,
Merkel who argues that this 4.0 revolution is a complete moving between Rp. 38 trillion to Rp. 44 trillion per month.
change from all aspects of industrial production through the
merger of digital technology and the internet with C. Blockchain
conventional industry. Meanwhile, according to Experts reveal that blockchain is a distributed digital
Schlechtendahl, the 4.0 revolution is an era that emphasizes transaction and data management system where all users of
the speed element of the availability of information where in the system have a common consensus (Yli-Huumo et al.,
an industrial environment one is always able to connect and 2016, Iansiti and Lakhani, 2017, Crosby et al., 2016). By
share information with one another. (Andre, 2018) In other creating a dispersed system, blockchain eliminates the role of
literature, it is also explained that the 4.0 industrial revolution intermediaries and thus lowers transaction costs. Blockchain

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discussion cannot be separated from the Bitcoin phenomenon III. METHOD, DATA, AND ANALYSIS
(Nakamoto, 2008, Yermack, 2015). The popularity of one of
these virtual currencies often makes the general public This research was conducted by using the literature
associate blockchain with Bitcoin (Crosby et al., 2016, study method. The literature study method is a method that is
Nakamoto, 2008). While that's not wrong, Bitcoin is in fact carried out by seeking information from various scientific
just one of the products based on the blockchain. Currently, journals, literature, books, and expert opinions on relevant
blockchain has been utilized outside of finance or financial topics. This literature study method is intended to explore
securities, such as food security, environmental governance, existing studies (secondary data) that discuss the
and urban planning (Anascavage and Davis, 2018). Based on development of the digital economy, blockchain and its
the type of application, Swan (2015) states that blockchain opportunities in the future.
has undergone its 3rd development (Blockchain 3.0). Even
today, companies like Seele have put out products that are The process of exploring secondary data is done using
believed to be Blockchain based 4,016. internet media. Internet media is used because it is suitable
for use in this study because of its advantages in finding
D. SWOT Theory sources more effectively and efficiently (Webster and
According to Daniel Start and Ingie Hovland SWOT Watson, 2002, Sekaran and Bougie, 2009). The first type of
analysis is a classic strategic planning instrument. Using a secondary data is published paper, either in the form of
framework of strengths, weaknesses, external opportunities books, peer-reviewed journals, scientific articles, or reports
and threats. This instrument provides a simple way to from official organizations. After getting information from
estimate the best way to execute a strategy. This instrument these sources, the researchers also enriched their knowledge
provides an overview and helps planners to achieve a goal by adding information from popular articles made in the mass
and identify things that need attention. SWOT stands for media. Mass media is an important source of information
Strength (strength), Weakness (weakness), Opportunity considering that the four technologies we discuss in this
(opportunity), Threats (threat). study are still relatively new in Indonesia. In addition, the use
of mass media as a source of data is also important to reduce
SWOT analysis is a form of analysis used by the bias in the selection of literature studies (Sekaran and
management of a company or organization that is systematic Bougie, 2009).
and can assist in the preparation of a mature plan to achieve
the goals of a company or organization. Both long-term goals IV. RESULT AND DISCUSSION
and short-term goals. There are two important factors in the
SWOT analysis, namely, internal factors (internal factors) A. Results
and external factors (external factors). Internal factors are a) Digital Economy
divided into two types, namely SW- strength and weakness, Setiawan (2017) explained that the digital world not
while external factors are also divided into two types, namely only offers great opportunities and benefits for the public and
OT- opportunities and threats. Below is an explanation of business interests. But it also challenges all areas of life to
SWOT, among others: (1) Strength is a situation or condition improve quality and efficiency in life. The use of various
that is a picture of the strength of an organization or company technologies is indeed very easy to live, but the digital
at this time. What must be done in using this analysis is that lifestyle will increasingly depend on the use of mobile
each organization/company needs to assess its strengths and phones and computers. Whatever it is, we should be grateful
weaknesses and then compare it with its competitors. (2) that all this technology makes it easier, it's just that of course
Weakness is a situation or condition that is a picture of the we have to control every usage. Because if we use this
weakness of an organization or company at this time. technology too much, we ourselves will be harmed, and
Weakness is a way of analyzing the weaknesses that exist in maybe we will not be able to maximize it. The development
an organization or company where these weaknesses can be a of technology is so fast that it has penetrated all lines of
serious obstacle in the progress of a company or people's social life, apparently not only changing the order of
organization. (3) Opportunities are situations or conditions social life, society's culture but also political life. The
which are a picture of the opportunities that exist from the sophistication of technology developed by humans is really
outside (external) of an organization or company and this used by politicians who want to gain sympathy and empathy
picture can provide opportunities for the development of an from the wider community. To increase electability and
organization or company in the future. Opportunity is an popularity, it can be done with digital facilities such as a
analysis used to find opportunities or breakthroughs that smartphone now by providing sophisticated
allow a company or organization to develop. Both now and in features/applications that connect directly to social networks
the future. (3) Threats is a condition that is a picture of the that are able to connect individuals with one another,
threat of a company or organization in running a business. between one group and another, even countries that provide
Threats are a way of analyzing the challenges or threats that great impact in modern politics.
must be faced by a company or organization in the face of
various kinds of unfavorable environmental factors. Which of In the socio-cultural field, the digital era also has
these threats can cause the decline of a company or positive and negative impacts that are challenging to
organization. If not addressed immediately, then the threat improve. Moral decline among the community, especially
will be a barrier for a business to be run. teenagers and students, is one of the serious socio-cultural
challenges. The pattern of interaction between people has
changed with the presence of digital era technology such as

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computers, especially in the middle to upper economic class. b) Blockchain
A computer connected to a telephone has opened up The implementation of blockchain in Indonesia is
opportunities for anyone to connect with the outside world influenced by global blockchain developments. Initially,
without having to socialize directly. blockchain developed as one of the aspirations for an
increasingly open world (Trujillo, 2017). The open world
In the field of defense and security, the use of phenomenon has also penetrated other sectors, such as
technology in the digital era plays a role in helping national software (open source software) (Lakhani and Wolf, 2003,
defense and security. Military institutions, among others, West and Gallagher, 2006), methods of innovation (open
have placed information technology as a weapon that innovation) (Chesbrough, 2003), and open data. (Janssen et
supports the strength and unity of the organization. In line al., 2012).
with the peculiarities of military organizations which always
demand speed and accuracy of information before making a The open world factor at the macro level then supports
decision (strategy formulation), the application of digital new cultural values that include transparency, efficiency,
technology strongly supports the program. Information anti-centralization and, to a certain extent, anti-represif
technology has had an effect on changing military strategy. government (Janssen et al., 2012, Bertot et al., 2010, Best
Challenges in the defense sector, such as facing external and Wade, 2009). , Hynes, 2018b), especially the millennials
threats that are cyber in nature, for example hacker activities (Setiawan, 2017). Supported by the penetration of
that can damage the Indonesian defense site system, are a information and communication technology (ICT) which is
serious concern. growing, the open world landscape has encouraged the idea
to innovate in the conventional financial sector (Nakamoto,
Digital technology combined with other warfare 2008, International Telecommunication Union, 2017). As is
technologies makes it possible to create a type of war that is well known, the conventional financial sector is facing
qualitatively like the use of war robots. In the field of several challenges, especially the issue of inefficient
information technology itself, the real challenges in the distribution of financial services and the issue of public
digital era are increasingly complex because various fields of distrust due to several financial scandals (Arner et al., 2015,
life carry influences that can make changes on every side. Philippon, 2016).
Information technology is a field of technology management
that includes various (but not limited) areas such as Blockchain consists of two eras, namely the Blockchain
processes, computer software, information systems, computer 1.0 era and the post-Blockchain 1.0 era. The division is made
hardware, programming languages, and construction data. considering the popularity and application of blockchain
Any data, information or knowledge perceived in any visual currently still focused on Blockchain 1.0 (Swan, 2015, Yli-
format, through any multimedia distribution mechanism, is Huumo et al., 2016). Blockchain Era 1.0: Cryptocurrencies
considered a part of information technology. Information Driven by macro and meso-level factors, blockchain
technology facilitates business in four core sets of services to technology was first introduced to target financial service
help execute business strategy: business process automation, applications, such as cryptocurrencies and digital wallets
providing information, connecting with customers, and (Nakamoto, 2008). Blockchain 1.0 offers more reliable,
productivity tools. There are many challenges in the field of secure and easy financial transactions by eliminating the role
information technology such as solving a problem, opening of intermediaries. However, blockchain still faces one of its
up creativity, increasing effectiveness and efficiency in doing biggest challenges: privacy.
work. The digital era must be taken seriously, mastering, and
controlling the role of technology properly so that the digital At the beginning of its development period, Indonesian
era brings benefits to life. people's expectations of blockchain were still specific as a
conventional financial service solution. These expectations
Musafak (2012) explains that the digital economy is an arise due to internal factors and external factors. The internal
economy based on electronic goods and services produced by factor comes from the development of blockchain which is
electronic businesses and traded through electronic still focused on financial service applications (Swan, 2015,
commerce. That means businesses with electronic production Yli-Huumo et al., 2016), while the external factor comes
and management processes that interact with partners and from the many reports in the media that expose Bitcoin and
customers and conduct transactions via the Internet and Web blockchain simultaneously (Li and Wang, 2017, Hynes, 30
technologies. Musafak (2012) also explained that the 2018b). Although this is commonplace, the generalization
definition of the Digital Economy version of the Encarta between Bitcoin and blockchain can cause misunderstandings
Dictionary is “Business transactions on the Internet: the in society. Furthermore, the expectations of the Indonesian
marketplace that exists on the Internet”. Understanding the people still value blockchain with a quality that tends to be
Digital Economy focuses more on transactions and markets negative. This is partly due to the growing practice of
that occur in the internet world. A broader understanding abusing Bitcoin for illegal transactions which is widely
than just transactions or markets is the New Economy which reported in the media (Mutmainah, 2018, NDY, 2018,
according to PC Magazine is "The impact of information Pebrianto and Suseno, 2018). These negative expectations
technology on the economy". The meaning is more focused then made the Indonesian government intervene. The
on the application of information technology in the economic Financial Services Authority (OJK), for example, has
field. The digital economy is a sector of the economy that suspended some crypto currency transaction practices to
includes goods and services when their development, protect the public (Financial Services Authority, 2017a).
production, sale or supply depends on digital technology. Apart from OJK, Bank Indonesia (BI) is also actively

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involved in the dynamics of Blockchain 1.0 development in poor internet access. The reason is, Indonesia's
Indonesia. On many occasions, BI has explained that the internet speed is only 3.0 Mbps.
practice of using cryptocurrencies in Indonesia is illegal. This b. Cybersecurity Indonesia is still a homework
is in accordance with Law no. 7 of 2011 concerning until now, in the Global Cybersecurity Index
Currency, Bank Indonesia Regulation (PBI) No 2017 document published by ITU-D Indonesia is
18/40/PBI2016 concerning the Implementation of Payment in position 69 out of 164 countries with maturing
Transaction Processing, and PBI 19/12/PBI/2017 concerning status (on the way to readiness) which is way
the Implementation of Financial Technology which states the behind when compared to Singapore which is in
obligation to use Rupiah for financial transactions within the 1st position and Malaysia in 3rd position.
territory of the Unitary State of the Republic of Indonesia c. The quality of human Resources (HR) in
(NKRI). In addition, BI also prohibits the use of Indonesia is still relatively low, along with the
cryptocurrencies because it is very risky, volatile, and there is industrial revolution and the development of
no responsible authority. Therefore, BI considers that digital technology, business competition and
cryptocurrencies have the potential to be used for illegal development that originally relied on the use of
activities such as money laundering and terrorism financing. natural resources will shift to mastery of
information technology and workforce
B. Discussion competence.
Based on the results obtained from this study, the
researchers tried to elaborate several points to be studied c) Opportunity
more carefully through the following SWOT analysis: a. Jobs in the era of the development of digital
information technology are feared to be replaced
a) Strengths. by machine power, but in fact the birth of the
a. The penetration of internet usage is very high, digital era provides opportunities to open new
according to a report by the Association of jobs. Currently, the digital industry actually
Indonesian Internet Service Providers (APJII) in provides space for creative workers who are
2018 which recorded that out of 264.16 million willing to work hard to break conventional
Indonesians, as many as 171.17 million people professions.
or around 64.8% have used the internet. This b. Attracting investors to invest their funds in the
number grew by 10.12% from the previous year digital economy because the birth of Indonesian
where the number of internet users only reached startups with unicorn status has become an
143.26 million people. Internet users have an attraction for investors.
impact on the development of the digital c. Review existing policies and laws. Regarding
economy. Even in 2019, Indonesia's digital the digital economy, there is a possibility that
economy contributed around 2.9 percent of the blockchain technology will actually be able to
Gross Domestic Product (GDP). This figure is help human work which in detail will be
higher than most Southeast Asian countries, with replaced by algorithmic machines into a certain
the exception of Singapore (3.2 percent) and device. Because if this is not regulated with
Vietnam (4 percent). certainty, it is not impossible that it will cause
b. Startup innovation is currently the main problems in the future.
attraction for the growth of the digital economy
in Indonesia, each of which is engaged in travel, d) Threats
on demand, to e-commerce. The products from a. Payment methods are still one of the obstacles
each startup are closely related to people's daily to the development of the digital economy,
activities, from online motorcycle taxis, airline especially those related to blockchain
tickets and hotels to meeting daily needs offered technology. That's because, in Indonesia itself,
by e-commerce platforms. Indonesia itself has cryptocurrency is still a debate.
four startups with unicorn status, namely Gojek, b. Unclear about taxes. One element that is at the
Tokopedia, Bukalapak and Traveloka. root of all blockchain technology problems is
c. Blockchain offers a secure and controlled taxes. An example is the case of selling Ghozali's
technology. Unlike conventional bookkeeping selfie photos. There are those who say that
and recording systems, blockchain technology is Ghozali is obliged to pay taxes, but which tax?
here to offer a sense of security to all its users. Will crypto money that has not been converted
The more secure a system is, the system will into rupiah be taxed? Where does the tax
continue to be sought, because no one wants to calculation come from? This is something that
be harmed by the slightest thing. must be resolved immediately. The following
table SWOT Matrix for a more detailed
b) Weaknesses explanation.
a. Telecommunication infrastructure in
Indonesia is still inadequate. Open Signal, a
research institute that analyzes internet speed,
reports that Indonesia is one of the countries with

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Strengths Weakness work without limits, especially practitioners of the digital
Telecommunication economy.
Very high internet penetration s infrastructure
C. For the Government of Indonesia
Startup innovation Blockchain The XIV economic policy package on the roadmap that
Offers multiple layers of security Quality of HR has been formalized should be realized as soon as possible by
Opportunity Threats making the right decisions. Improving the quality of human
Employment Payment methods resources should be addressed considering that Indonesia is
Attract investors Tax ambiguity quite lagging behind other countries whose quality of human
Review existing policies and laws resources is worthy to compete globally.
Table 1: SWOT Matrix
REFERENCES
V. CONCLUSION AND SUGGESTION
[1.] AGUSTIYANTI. 2018. BI Temukan 44 Pedagang di
This study aims to determine the development of the Bali Terima Transaksi Bitcoin.
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