Rethinking: The Role of Digital Transformation

— Digital transformation in Indonesia is accelerating, driven by a 600% surge in QRIS digital payment usage in Q1 2025 and major investments such as Microsoft’s USD 1.7 billion commitment to AI and cloud infrastructure. This study aims to map research themes, identify gaps, and explore policy implications for achieving inclusive and sustainable digital transformation, both in Indonesia and comparable developing economies. Using a Systematic Literature Review (SLR) based on the PRISMA method, we searched the Elsevier database (2020–2025) with the keyword “digital transformation†, applied inclusion/exclusion criteria for relevance and quality, and screened down from 581 to 164 peer-reviewed articles. Bibliometric analysis was conducted using VOSviewer with keyword co-occurrence mapping, generating network, overlay, and density visualizations. Findings reveal dominant clusters around digital literacy, digital financial inclusion, and innovation, alongside emerging themes such as agroecology and digital public service evaluation. Barriers including low literacy, infrastructure gaps, and rigid regulations most strongly affect sectors like education, health, and public administration. Policy implications highlight the need for targeted literacy programs, investment in rural infrastructure, and cross-sector collaboration to leverage emerging areas like AI and green technologies. This study contributes to the regional discourse on digital development by offering a thematic roadmap for future research and policy action.