Title:
The Role of Digital Economy Cooperation Between Indonesia and Singapore in Driving Economic Transformation in the Era of Globalization

Authors:
Maria Trisna, Lesliana Vinita, Erlangga Wijaya, Chandra Meida Dewi, Indonesia

Abstract:

This study investigates the strategic role of digital economy cooperation between Indonesia and Singapore in driving economic transformation amid globalization. Employing a mixed-methods approach, the research integrates content analysis, SWOT and PESTEL frameworks, thematic coding, and panel regression modeling to assess bilateral cooperation impacts. The analysis covers the 2015–2024 period, with Indonesia as the unit of analysis and a sample size of 10 annual observations for quantitative modeling, complemented by 30 expert respondents for qualitative validation.

Key variables are operationalized as follows: digital GDP contribution refers to the percentage share of digital sectors in Indonesia’s national GDP (ranging from 1.5% to 7.9%); startup growth is measured by the number of active digital startups (0.8k to 5.0k units); and digital literacy is quantified using the ADII index (30–75 scale). Regression results show that digital FDI (β = 0.42), startup growth (β = 0.31), and digital literacy (β = 0.55) significantly influence digital GDP, with the model explaining 81% of the variance (R² = 0.81).

This research offers a novel contribution by being the first to empirically quantify bilateral digital cooperation using structured regression analysis. Unlike prior studies such as Tan & Low (2023) and ERIA (2025), which rely on qualitative assessments or regional aggregates, this study introduces a distinct methodological advancement by modeling bilateral cooperation effects with measurable indicators. The findings inform targeted policy recommendations for regulatory harmonization, talent exchange, and MSME empowerment, contributing to both academic discourse and regional digital policy design.

DOI: https://doi.org/10.51505/IJEBMR.2025.91115