Beyond Silicon Valley: Bandung's Ecosystem Approach to Digital Economic Development

Kurniadi Kurniadi; Rosyidah Rahmah; Desi Indrawati; Annisa Rachma Khamilla; Alya Nufus Shafira; Harris Purmama; Rivai Ahmad; Badruzzaman Badruzzaman; MM Bagali

doi:10.65582/gti.2026.003

Authors

Kurniadi Kurniadi Department of Entrepreneurship, Binus Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia https://orcid.org/0000-0003-2047-9795
Rosyidah Rahmah Department of Entrepreneurship, Binus Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia https://orcid.org/0000-0002-4399-731X
Desi Indrawati Department of Entrepreneurship, Binus Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia https://orcid.org/0000-0002-9342-3218
Annisa Rachma Khamilla Department of Entrepreneurship, Binus Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia https://orcid.org/0009-0003-9468-2080
Alya Nufus Shafira Master of Management Department, Padjadjaran University, Bandung, Indonesia https://orcid.org/0009-0003-0362-7124
Harris Purmama Department of Public Administration, Iskandar Muda University, Banda Aceh, Indonesia, https://orcid.org/0009-0003-5099-0233
Rivai Ahmad Department of Public Administration, Iskandar Muda University, Banda Aceh, Indonesia https://orcid.org/0009-0008-6426-9363
Badruzzaman Badruzzaman Department of Public Administration, Iskandar Muda University, Banda Aceh, Indonesia https://orcid.org/0009-0008-9016-520X
MM Bagali School of Commerce & Management Studies (PG), DSU - Dayananda Sagar University, Bengaluru, India https://orcid.org/0000-0003-1227-3156

DOI:

https://doi.org/10.65582/gti.2026.003

Keywords:

Digital economy, Bandung City, IMF ADB G20 frameworks, MSME diversification, Digital adoption

Abstract

The implementation of the digital economy in Bandung City reflects the synergy between entrepreneurship and technology in driving economic growth. As a creative city, Bandung has leveraged digital technology to strengthen its strategic sectors. Economic acceleration follows an approach adapted from the IMF, ADB, and G20, with operational adjustments tailored to local conditions. Sector analysis is conducted using qualitative techniques with nominal or ordinal scales to measure qualitative variables. Clustering and ranking methods are applied to categorize sectors based on specific criteria, facilitating the identification of priority interventions. The findings indicate that the information and communication sector serves as the primary driver of economic growth in Bandung City. Additionally, the city demonstrates strong MSME diversification, particularly in the food, beverage, and fashion industries. This diversification enhances the resilience of MSMEs against economic crises. Although most MSMEs remain micro-scale with low income levels, they possess growth potential if supported by appropriate policies. The adoption of digital technology has progressed rapidly in marketing and payment systems; however, its application in production and design remains limited and requires further development to enhance business competitiveness. Keywords: Digital economy, Bandung City, IMF ADB G20 frameworks, MSME diversification, digital adoption

References

Abdillah, F. (2024). The Impact of Digital Economy on Economic Growth in Indonesia. Benefit: Journal of Bussiness, Economics, and Finance, 2(1), 27–35. https://doi.org/10.37985/benefit.v2i1.335

Aker, J. c, & Mbiti, I. M. (2010). Mobile Phones and Economic Development in Africa. Journal of Economic Perspectives, 24(3), 207–232. https://doi.org/10.1080/00220388.2012.709615

Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., & Cochran, J. J. (2017). Statistics for Business and Economics (D. R. Anderson, D. J. Sweeney, T. A. Williams, J. D. Camm, & J. J. Cochran (eds.); 13e revise). Cengage Learning.

Asian Develoment Bank. (2021). Asian Economic Integration Report 2021 (Issue February). https://doi.org/http://dx.doi.org/10.22617/TCS210048-2

Bachtiar, P. P., Diningrat, R. A., Kusuma, A. Z. D., Izzati, R. Al, & Diandra, A. (2020). Who Is Digital Economy for? Toward an Inclusive Digital Economy in Indonesia. In Handoko Gunardi & W. Purbaningrum (Eds.), The Smeru Research Institute (1st ed.). The SMERU Research Institute. https://smeru.or.id/en/content/who-digital-economy-toward-inclusive-digital-economy-indonesia

Bahia, K., Castells, P., Cruz, G., Masaki, T., Rodriguez-Castelan, C., & Sanfelice, V. (2021). Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania. In SSRN Electronic Journal (No. 2365–9793; September 2021, Vol. 9, Issue 14720). https://doi.org/10.2139/ssrn.3921510

Borowski, J., & Khurana, B. S. (2019). Technology Transformation: Reinvent the Network and Change the Way of Working, Now! Management for Professionals, Part F630, 359–369. https://doi.org/10.1007/978-3-319-77724-5_32

Bukht, R., & Heeks, R. (2017). Defining, Conceptualising and Measuring the Digital Economy. In Manchester Centre for Development Informatics Working Paper 68 (No. 68). https://doi.org/10.2139/ssrn.3431732

Das, K., Gryseels, M., Sudhir, P., & Tan, K. T. (2016). Unlocking Indonesia’s Digital Opportunity. McKinsey & Company, 1(October), 1–28. https://www.mckinsey.com/~/media/McKinsey/Locations/Asia/Indonesia/Our Insights/Unlocking Indonesias digital opportunity/Unlocking_Indonesias_digital_opportunity.ashx

Das, K., Tamhane, T., Vatterott, B., Wibowo, P., & Wintels, S. (2018). The digital archipelago: How online commerce is driving Indonesias economic development (Issue August). www.mckinsey.com/featured-insights/asia-pacific/the-digital-archipelago-how-online- commerce-is-driving-Indonesias-economic-development

Ducharme, L. M., Arslanalp, S., Goksu, B., Kostroch, D., Carlos Moreno-Ramirez, J., Martins, M., Matei, S., Cas, S. M., Van Oudheusden, P., Piché, R., Razin, T., Reinsdorf, M., Sánchez-Muñoz, C., Tumbarello, P., Venter, L., Ylä, M., & Jamasali, J. K. (2018). Measuring The Digital Economy. In International Monetary Fund (Vol. 3, Issue February). https://www.bea.gov/sites/default/files/papers/defining-and-measuring-the-digital-economy.pdf

Fatimah, H. S., Sriningsih, S., Pascayanti, Y., & Yusuf, F. (2023). Digital Divide Solutions and Public Service Policy Implementation in Indonesia after the Covid-19 Pandemic. Journal of Economics, Finance and Management Studies, 06(08), 3801–3818. https://doi.org/10.47191/jefms/v6-i8-30

Ferlina, A., Trenggana, M., Syahadat, R. M., Adriani, H., & Halim, H. (2024). Digitalisasi tourism (L. K. Octaviani (ed.); 1st ed., Issue June). Widina Publisher.

Gauthier, J., Ortmans, J., & Larkin, M. (2020). The Global Startup Ecosystem Report. In The Global Entrepreneurship Network. https://www.startupgenome.com/

Gokhberg, L., Abdrakhmanova, G., Streltsova, E., & Vishnevskiy, K. (2023). Measuring the digital transformation. In L. Gokhberg, G. Abdrakhmanova, E. Streltsova, & K. Vishnevskiy (Eds.), Handbook of Innovation Indicators and Measurement: Second Edition (4th ed.). OECD Publishing. https://doi.org/10.4337/9781800883024.00023

IMD World Competitiveness Center. (2024). World Digital Competitiveness Ranking. In IMD World Competitiveness Center. www.imd.org

Jalli, N. (2021). Lack of internet access in Southeast Asia poses challenges for students to study online amid COVID-19 pandemic. The Conversation, 2021. http://theconversation.com/lack-of-internet-access-in-southeast-asia-poses-challenges-for-students-to-study-online-amid-covid-19-pandemic-133787

Kementerian Koordinator Perekonomian RI. (2020). Pengembangan Ekonomi Digital Indonesia 2030 (M. P. Indonesia (ed.); 1st ed.). Kementerian Koordinator Bidang Perekonomian Republik Indonesia.

Kementerian Perencanaan Pembangunan Nasional/ Badan Perencanaan Pembangunan Nasional. (2021). Peta Jalan Sustainable Development Goals (SDGs) di Indonesia. In Kementerian PPN/Bappenas. https://sdgs.bappenas.go.id/website/wp-content/uploads/2021/02/Roadmap_Bahasa-Indonesia_File-Upload.pdf

Li, X., & Wu, Q. (2023). The impact of digital economy on high-quality economic development: Research based on the consumption expansion. PLoS ONE, 18(12), 1–19. https://doi.org/10.1371/journal.pone.0292925

Silva, A. J. C., Burt, J., Cagley, C., Martin, J. P., States, U., Costa, A. D. O., & Rica, C. (2013). Digital Inclusion as Public Policy : Disputes in the Human Rights Field of Human Rights Indicators The Challenges to Accountability in Peru Marisa Viegas e Silva Land Rights as Human Rights : Daniel W . Liang Wang and Octavio Luiz Motta Ferraz Maria Brant. 10(18), 1–228.

Statistic Indonesia. (2024). Statistik Indonesia dalam Infografis.

Sujatmiko, A., Alexandri, M. B., Arifianti, R., & Sumadinata, W. S. (2022). The Effect Of Entrepreneurial Process On Digital Entrepreneurship Against Bandung City As A Creative City. Journal of Positive School Psychology, 6(7), 5717–5733. https://journalppw.com/index.php/jpsp/article/view/13648

Szoszkiewicz, Ł. (2018). “Internet Access as a New Human Right? State of the Art on the Threshold of 2020.” Przegląd Prawniczy Uniwersytetu Im. Adama Mickiewicza, 8(September 2018), 1–15. https://doi.org/10.14746/ppuam.2018.8.03

United Nations Conference on Trade and Development. (2019). Digital Economy Report 2019 : value creation and capture - implications for developing countries. (M. Kituyi (ed.); 1st ed.). United Nations Publication. un.org/publications

World Bank Group. (2024). Digital Progress and Trends Report 2023. In World Bank Group. https://doi.org/10.1596/978-1-4648-2049-6

Zhang, J., Zhao, W., Cheng, B., Li, A., Wang, Y., Yang, N., & Tian, Y. (2022). The Impact of Digital Economy on the Economic Growth and the Development Strategies in the post-COVID-19 Era: Evidence From Countries Along the “Belt and Road.” Frontiers in Public Health, 10(May), 1–17. https://doi.org/10.3389/fpubh.2022.856142