From Warung to Online Store: Digital Business Strategies in Indonesia

Abstract

Digital transformation has become a key driver of the development of micro, small, and medium enterprises (MSMEs) in Indonesia, especially in the shift from traditional models such as warungs to online business platforms. This shift not only increases the competitiveness of MSMEs, but also opens up wider access to markets, technology, and financial services. This article aims to analyze the digital business strategy of MSMEs in Indonesia and map the factors that affect their success. To achieve this goal, this study uses the Systematic Literature Review (SLR) method by examining various relevant academic and policy studies regarding the digitalization of MSMEs in Indonesia. The results of the study show that there is a strong trend in the implementation of digital strategies, such as the use of digital marketing, the use of e-payments, and the integration of MSMEs into the marketplace as a form of business adaptation. Government support through programs such as Go Digital MSMEs and the National Movement of 1 Million MSMEs Go Online has also accelerated the digitalization process. However, challenges still arise in the form of low digital literacy, limited infrastructure, and consumer trust issues. This study concludes that the success of MSME digitalization is largely determined by community support, innovative ecosystems, and collaboration with large platforms. These findings provide academic contributions and practical recommendations for MSME actors and policymakers in strengthening digital transformation in Indonesia.