• Hasnah HARON Universiti Sains Islam Malaysia
  • Asmwawati SAJARI University Sultan Azlan Syah (USAS)
  • Retno DEWANTI BINUS University
  • Yuvaraj GANESAN Universiti Sains Malaysia
  • Anderes GUI BINUS University
Keywords: Digital Transformation, IR 5.0, ICT, Digital Society, Development Technology, Benefit of Technology


This paper will discuss the changes in technology, the benefits of technology to the Malaysian and Indonesian communities, the challenges faced in embracing technology and how the two countries overcome the challenges. The rapid proliferation of ICT within the sphere of rural development is evident both locally and globally. In line with national aspirations, the government has proactively addressed the challenges posed by ICT through a comprehensive program. In Malaysia, this initiative involved the establishment of telecentres within rural communities, thereby introducing the digital realm to these settings. This technological advancement provided access to online facilities, a broader global perspective, and improved learning opportunities for the rural population. The ultimate objective was to bridge the digital divide that separates rural and urban communities, promoting inclusivity and equitable access to technology. Meanwhile, in Indonesia, proactive measures have been taken by fostering inclusive digital transformation through promoting universal digital readiness and implementing free Wi-Fi areas in numerous public spaces. Both countries have successfully outlined a roadmap and outcomes of cultivating a "digital society" to face the upcoming challenges of IR5.0.


Download data is not yet available.


Amitkumar Dudhat , Vertika Agarwal., (2023). Indonesia's Digital Economy's Development. IAIC Transactions on Sustainable Digital Innovation (ITSDI). Vol. 4 No. 2 April 2023. p-ISSN: 2686-6285, e-ISSN: 2715-0461. Retrieved: file:///C:/Users/User/Desktop/PROF%20ARTICLE_DIGITAL%20TRASFORMATION/Indonesia's%20Digital%20Economy's%20Development.pdf.

Boddu, R. S. K. (2021, March). Internet of Things (IoT): Accelerating the Digital transformation of Healthcare system. In 2021 7th International Conference on Advanced Computing and Communication Systems (ICACCS) (Vol. 1, pp. 1716- 1720). IEEE.

Comscore. (2013). Southeast Asia digital future in focus 2013. Retrieved from

Digital News Asia (2019). Retreived: › archive › 2019/07

Economic and Social Commission for Asia and the Pacific (ESCAP). (2006). United Nations Guidebook on developing community E- centres in rural areas: Based on the Malaysian experience. ESCAP, United Nations, Kuala Lumpur.

Eka Santhika, (2023). Indonesia Enhances Welfare with Digital Transformation. Retrieved:

eMarketers (2013). In Indonesia, a new digital class emerges. Retrieved from https://www.

George Kuk & Marijn Janssen. 2011. The Business Models and Information Architectures of Smart Cities. Journal of Urban Technology, 18:2, 39-52, DOI:10.1080/10630732.2011.601109

Hootsuite. (2019). Digital 2019 Indonesia.

ISEAS. 2015. Digital Transformation under Indonesia’s G20 Presidency: What can it Deliver? (Lili Yan Ing, Titik Anas and Maria Monica Wihardja). Researchers at ISEAS – Yusof Ishak institute analyse current events. Retrieved: file:///C:/Users/User/Desktop/Digital%20Transformation%20under%20Indonesia%E2%80%99s%20G20%20Presidensy_What%20can%20it%20be%20deliver.pdf

Ishak, N. (2020). Overview of Cashless Payment in Malaysia. International Journal of Accounting, 5(27), 11-18.

Jalaluddin Abdul Malek. (2012). Kesertaan Digital dan Kelestarian Telecenter Pelbagai Fungsi di Indonesia dan Malaysia. GEOGRAFIA OnlineTM Malaysia Journal of Society and Space 8 issue 6 (166 - 183) Themed Issue on The Management of Social-Ecological Change and Uncertainties in the Global Era © 2012, ISSN 2180-2491

Jee Young Lee & Didin Nuruddin Hidayat, (2019). Digital technology for Indonesia’s young people: The Significance of SNS Use and Digital Literacy for Learning. ISSN 1424-3636.


Jon Russell, (2018). Google report: Southeast Asia’s digital economy to triple to $240 billion by 2025. Retrieved:

Kamarudin, Khairul & Untari, Rustina & Rashid, Mohamad. (2020). Sustaining rural livelihood through entrepreneurship and creative village development: Malaysia and Indonesia experience. 20. 303-309.

Kominfo, Kementerian Komunikasi Informasi dan Teknologi Republik Indonesia. (2014). Kemkominfo: Pengguna Internet di Indonesia Capai 82 Juta [Indonesian ministry of communication and information: internet users in Indonesia reached 82 million]. Retrieved from http:// 3AþPenggunaþInternetþdiþIndonesiaþCapaiþ82þJuta/0/berita_ satker

Leng, Y. K. (2019). Malaysia’s Budget 2020: A Tough Balancing Act.

L. Yang, Y. Li, J. Wang, and R. S. Sherratt, “Sentiment Analysis for E-Commerce Product Reviews in Chinese Based on Sentiment Lexicon and Deep Learning,” (2020). IEEE Access, vol. 8, pp. 23522–23530, 2020, doi: 10.1109/ACCESS.2020.2969854

Tri, N. M., & Hau, D. T. (2020). Impact of industrial revolution 4.0 on education and training in Ho Chi Minh City, Vietnam. Journal of Critical Reviews, 7(12), 2708-2713.

Tri, N. M., Hoang, P. D., & Dung, N. T. (2021). Impact of the industrial revolution 4.0 on higher education in Vietnam: challenges and opportunities. Linguistics and Culture Review, 5(S3), 1-15.

M.A. Burhanuddin, Fahmi Arif, V. Azizah, &Anton Satria Prabuwono, (2009). Barriers and Challenges for Technology Transfer in Malaysian Small and Medium Industries. DOI 10.1109/ICIME 2009 39. International Conference on Information Management and Engineering.

Mery Yanti & Alamsyah, (2014). Determinant Of Digital Divide In Indonesia: The Case Of South Sumatra Province, Indonesia. Afro Asian Journal of Social Sciences Volume 5, No. 5.1 Quarter I 2014 ISSN: 2229 – 5313.


Ministry of Information Society and Administration, (2011). "National Strategy for E-Inclusion 2011 - 2014", 101. Accessed 16.10.2019 from egija_za_e-vklucuvanje.pd

M. T. Majeed and T. Ayub, (2018). “Information and communication technology (ICT) and economic growth nexus: A comparative global analysis,” Pakistan J. Commer. Soc. Sci., vol. 12, no. 2, pp. 443–47

Nguyen, S. D. (2020). Digital transformation in art pedagogical training in Vietnam today. Vietnam Journal of Education, 4(4), 69-75.

Pero Lucin, Hana Mahmutefendic. (2013). A New World of Learning. 10.5005/jp-journals-10009-1290. Retrieved at:

Puspitasari, L., & Ishii, K. (2016). Digital divides and mobile internet in Indonesia’’. Journal Telematics and Informatics, 33, 472-483.

Rahmana, M. P., & Senusia, N. (2019). Exploring the Understanding, Role and Participation of Small and Medium Enterprises (SMEs) On Digital Economy in Malaysia. Malaysian Journal of Consumer and Family Economics. pp. 139-152

Saleh, A.S., Ndubisi, N.O. (2006). An Evaluation of SMEs Development in Malaysia. International Review of Business Research Papers, Vol. 2. No. 1, pp. 1-1

Soh, P. Y., Heng, H. B., Selvachandran, G., Chau, H. T. M., Abdel-Baset, M., Manogaran, G., & Varatharajan, R. (2020). Perception, acceptance, and willingness of older adults in Malaysia towards online shopping: A study using the UTAUT and IRT models. Journal of ambient intelligence and shumanised computing, 1-13

Stratigea, A., Chrysaida-Aliki Papadopoulou & Maria Panagiotopoulou.(2015). Tools and Technologies for Planning the Development of Smart Cities. Journal of Urban Technology, 22:2, 43-62, DOI: 10.1080/10630732.2015.1018725

S. Whitelaw, M. A. Mamas, E. Topol, and H. G. C. Van Spall (2020). “Applications of digital technology in COVID-19 pandemic planning and response,” Lancet Digit. Heal., vol. 2, no. 8, pp. e435–e440

The Star, (2022). Malaysia, Indonesia share experience on best practices for technology development.


Tri, N. M., & Hau, D. T. (2020). Impact of industrial revolution 4.0 on education and training in Ho Chi Minh City, Vietnam. Journal of Critical Reviews, 7(12), 2708-2713.

Tri, N. M., & Nhe, D. T. (2020). Impact of Industrial Revolution 4.0 on the Labor Market in Vietnam. Research in World Economy, 12(1), 94-100.

Utomo, A.J., Reimondos, A., & Utomo, I.D. (2013). Digital Inequalities and Young Adults in Greater Jakarta: A Socio-Demographic Perspective. International Journal of Indonesian Studies, Vol 1/2013.


Wade Larson, 2020. Welcome to the Next Industrial Revolution (IR 5.0). Retrieved:

Zurinah Tahir, Jalaluddin Abdul Malek & Mohd Asruladlyi Ibrahim. (2016). Developing Smart Ict In Rural Communities In Malaysia Through The Establishment Of Telecenters. Vol. 11, No. 1 (2016) 227-242, ISSN: 1823-8.

MINI RTC (Mini Rural Transformation Centre). Retrieved:

How to Cite