Digital Economic Challenges in the Informal Sector of Palembang City

Abstract

This research analyze the digital economy challenges in the informal sector. The method of quantitative and qualitative descriptive approaches, In the quantitative method, data collection was carried out through surveys in 18 sub-districts 384 respondents. Meanwhile, in the qualitative method, interview guides were employed from 18 informants. Furthermore, the data obtained was analyzed using data reduction, data display, drawing conclusions, and verification. The main research result indicated that the digital economy is vital in increasing income and ease of transaction processes. The potential for the e-commerce industry was enormous in the Palembang city. People living in major cities made digital e-commerce technology part of their lifestyle to meet their living needs. From the data obtained, the main factor as a challenge in the Palembang city was the lack of customers. It showed an indication of tight competition. Competition between sellers was a challenge in the informal sector, especially in utilizing the digital economy in Palembang city. In short, Based on the field results obtained, it shows that the type of business is relatively homogeneous So that it has a positive impact, such as being able to increase income by utilizing digital technology like today.