The Development of E-Commerce in Indonesia: Impact on MSMEs and Challenges of Digital Transactions

Abstrak

The development of E-Commerce in Indonesia in recent years has

become one of the main factors in the change of the digital economy.

Micro, Small, and Medium Enterprises (MSMEs), which serve as the

backbone of the country’s economy, have gained significant

opportunities through access to a wide market, improved operational

efficiency, and ease in marketing and transactions. However, on the

other hand, there are various challenges that must be faced, such as

uneven digital literacy, logistics infrastructure that still needs

improvement, issues of security and trust in digital transactions, as well

as the complexity of regulations and taxation, along with competition

from imported products and large platforms. This article aims to

analyze how the development of electronic commerce has impacted

MSMEs in Indonesia and to identify various key challenges in digital

transactions that still hinder the optimization of its benefits