The digital economy has significantly impacted economic growth in Indonesia, driven by technological advancements and digitalization. This study aims to examine the effects of the digital economy on Indonesia's economic growth using a qualitative descriptive method and data from the Central Statistics Agency (BPS). The results show that the digital economy has a positive impact on Indonesia's economic growth, as evidenced by increased digital transaction values and contributions to Indonesia's GDP. However, it also has potential negative impacts, such as digital inequality and cybercrime. To maximize the positive effects, the government needs to implement various policies. The digital economy is characterized by high development of technology-based business and trade transactions. It has become a key driver of economic growth in Indonesia, with the digital economy's value reaching Rp714.4 trillion in 2022, growing by 27.6% compared to the previous year. The government aims to increase the digital economy's value to Rp1.7 trillion by 2025, supporting digital infrastructure, regulatory simplification, and digital literacy. The digital economy contributes to economic growth through increased productivity, job creation, enhanced competitiveness, and improved economic equity. However, it also poses challenges such as digital inequality and cybercrime. The study concludes that the digital economy has a positive impact on Indonesia's economic growth, and the government should support e-commerce development and expand internet access to facilitate online transactions and boost economic growth.The digital economy has significantly impacted economic growth in Indonesia, driven by technological advancements and digitalization. This study aims to examine the effects of the digital economy on Indonesia's economic growth using a qualitative descriptive method and data from the Central Statistics Agency (BPS). The results show that the digital economy has a positive impact on Indonesia's economic growth, as evidenced by increased digital transaction values and contributions to Indonesia's GDP. However, it also has potential negative impacts, such as digital inequality and cybercrime. To maximize the positive effects, the government needs to implement various policies. The digital economy is characterized by high development of technology-based business and trade transactions. It has become a key driver of economic growth in Indonesia, with the digital economy's value reaching Rp714.4 trillion in 2022, growing by 27.6% compared to the previous year. The government aims to increase the digital economy's value to Rp1.7 trillion by 2025, supporting digital infrastructure, regulatory simplification, and digital literacy. The digital economy contributes to economic growth through increased productivity, job creation, enhanced competitiveness, and improved economic equity. However, it also poses challenges such as digital inequality and cybercrime. The study concludes that the digital economy has a positive impact on Indonesia's economic growth, and the government should support e-commerce development and expand internet access to facilitate online transactions and boost economic growth.