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This study aims to examine the legal gaps and regulatory challenges in enforcing criminal liability against perpetrators of crimes within Indonesia’s crypto ecosystem, particularly in the context of Decentralized Finance (DeFi), smart contracts, and decentralized digital asset trading platforms. The research employs a normative juridical approach using statutory and conceptual methods. The findings indicate that current criminal law instruments, such as Article 378 of the Criminal Code, Article 28 paragraph (1) of the Electronic Information and Transactions (ITE) Law, Law No. 8 of 2010 on the Prevention and Eradication of Money Laundering (TPPU), and Law No. 10 of 1998 on Banking, are inadequate to address the unique and complex characteristics of crypto-related crimes. These crimes are anonymous, cross-jurisdictional, and difficult to trace due to the absence of centralized authority. As a result, the existing legal framework fails to provide sufficient victim protection and leads to weak law enforcement effectiveness. This legal vacuum also hampers the state's ability to respond to the growing digital threats and creates legal uncertainty in the expanding crypto space. Therefore, this study recommends the formulation of specific criminal regulations that comprehensively define digital assets, legal subjects within decentralized systems, and new criminal offenses relevant to crypto-related conduct. It also calls for the establishment of specialized institutions dedicated to investigating and prosecuting such crimes. These proposed regulations are expected to strengthen the national criminal justice system, making it more adaptive, fair, and effective in addressing the challenges posed by digital transformation.

This community service activity aims to improve the financial literacy of MSMEs in Giling Village, Pabelan District, Semarang Regency, through training on preparing simple financial reports. The training was conducted over one day and attended by 20 MSMEs from various business sectors, such as culinary, handicrafts, and trade. The methods used in this training included socialization of basic accounting materials tailored to the level of understanding of the participants, as well as hands-on practice in preparing financial reports, such as profit and loss statements and balance sheets. The material was presented in a simple and easy-to-understand manner, so that participants could immediately apply it to their businesses. Evaluation was carried out by observing the process of preparing financial reports by participants, using the provided practice sheets, and a feedback questionnaire that measured the extent of participants' understanding and changes in attitudes. The results of this activity showed that most participants were able to understand basic accounting concepts and were able to prepare simple financial reports quite well. This was also followed by an increase in participants' awareness of the importance of neat and orderly recording of daily transactions in running a business. Furthermore, this training succeeded in motivating participants to apply what they had learned in their respective businesses independently. Although this activity was short-lived, it had a very positive impact in building a strong foundation for more orderly and transparent financial governance among MSMEs. Therefore, it is recommended that follow-up training and regular mentoring be conducted to ensure the skills acquired can be applied sustainably and improve the ability of MSMEs to manage their finances professionally. Furthermore, this activity also provided a deeper understanding of the importance of sound financial planning for those wanting to start a business.

Honesty (ṣidq) is a core value in Islamic teachings that not only shapes individual behavior but also plays a vital role in establishing a just, trustworthy, and moral society. In various authentic hadiths, the Prophet Muhammad ﷺ emphasized that honesty leads to righteousness (al-birr), and righteousness leads to Paradise. Conversely, lying leads to wickedness and Hell, and is one of the signs of hypocrisy. This study aims to explore the significance of honesty in Islam based on the Prophet’s hadiths and the explanations of classical scholars. The research method used is qualitative with a library research approach. Primary data sources include authentic hadith compilations such as Sahih al-Bukhari and Sahih Muslim, while secondary data are drawn from relevant scholarly literature. The analysis applies a thematic approach by grouping hadiths on honesty into sub-themes and interpreting their contexts and meanings. The findings show that honesty must be cultivated continuously, is a sign of true faith, and a condition for attaining divine blessings in all aspects of life, including economic transactions (mu‘āmalāt). Scholars such as Imam al-Nawawī, Ibn Rajab, and Ibn Ḥajar unanimously affirm that honesty is the root of all virtue and a source of spiritual light. Thus, honesty in Islam is not merely a social ethic but a spiritual path to divine pleasure and salvation in both this world and the hereafter. The analysis follows a thematic approach, categorizing the hadiths related to honesty into sub-themes and interpreting their contexts and deeper meanings. The findings emphasize that honesty is an essential part of true faith, continuously cultivated by believers, and a necessary condition for receiving divine blessings in all areas of life, including economic transactions (mu‘āmalāt). Scholars like Imam al-Nawawī, Ibn Rajab, and Ibn Ḥajar unanimously assert that honesty is the foundation of all virtues and a source of spiritual enlightenment. Therefore, in Islam, honesty is more than just a social ethic; it is a spiritual path that leads to divine pleasure and salvation in this life and the hereafter. This study underscores the central role of honesty in both personal morality and broader social harmony within Islamic teachings.

The scarcity of subsidized 3-kilogram LPG in Tanjungpinang City has become a crucial public issue, primarily due to inaccurate distribution. The Puan Molek Card program was designed as an innovative solution to reorganize the LPG subsidy distribution mechanism to make it more manageable and in favor of poor households and eligible MSMEs. An evaluation based on William Dunn's six dimensions showed that in the initial phase, the program's effectiveness and efficiency were quite high, supported by collaborative data collection between local governments, neighborhood associations (RT/RW), and community social institutions. The card also provided convenient access and reduced the potential for hoarding by irresponsible individuals. However, over time, inconsistent card use and weak oversight caused the program's effectiveness to decline. Many residents returned to using ID cards (KTP) as a substitute, opening new opportunities for distribution irregularities. This indicates that the dimensions of accuracy and accountability have not been maintained sustainably. The study also noted that although LPG distribution was relatively smooth, there is a long-term potential for declining public trust if the government does not immediately implement improvements. Therefore, the main recommendations are strengthening the digital-based monitoring system to record LPG subsidy transactions in real time, as well as integrating the Puan Molek Card with population data to prevent misuse. Furthermore, local governments need to intensify public awareness campaigns on the importance of card use and conduct regular field monitoring. Cross-sector collaboration, including with Pertamina, distribution agents, and independent oversight bodies, is also needed to ensure the program returns to its primary objective: ensuring that the 3-kilogram LPG subsidy reaches those entitled to it.

The rapid advancement of information technology has brought significant transformation across multiple sectors, including library management systems. One of the pressing needs in higher education libraries is the development of an efficient, accurate, and secure borrowing system that reduces human error and improves service quality. This study aims to design and implement a book borrowing system for the STMIK Kaputama library by utilizing Radio Frequency Identification (RFID) technology integrated with the Internet of Things (IoT). The proposed system employs the ESP32 microcontroller as the core controller, supported by the RFID RC522 module and buzzer as primary devices to facilitate the automatic identification of library members and borrowed books. The borrowing and returning process is executed through RFID card scanning, with all transaction data transmitted via WiFi and stored in a MySQL database, which is managed through a PHP-based web platform. The development process follows the Agile methodology, enabling iterative improvement and adaptability to user requirements. System testing demonstrates that the integration of RFID and IoT technology significantly enhances the efficiency, accuracy, and speed of library operations compared to the previous manual system. Furthermore, the system allows real-time recording of borrowing transactions, monitoring of user activities, and centralized data management. These features not only streamline library services but also improve data security and reduce the risk of loss or duplication of records. Overall, the implementation of this RFID-IoT-based system provides an innovative solution for modernizing library management, particularly in higher education institutions. The system ensures faster services, minimizes errors, and creates a structured and reliable digital infrastructure to support academic information services. This study highlights the potential of combining RFID and IoT technologies to improve the quality and effectiveness of library systems in the digital era.

Indonesia's digital transformation has accelerated dramatically, creating unprecedented opportunities alongside significant cybersecurity challenges. This article examines the current state (das sein) and normative expectations (das sollen) of Indonesia's cybersecurity and data protection legal framework through a comprehensive normative legal analysis. The study reveals critical gaps in existing legislation, particularly the Information and Electronic Transactions Law (UU ITE). It evaluates the potential impact of emerging regulatory frameworks, including the Draft Law on Personal Data Protection (RUU PDP). Using normative legal research methodology, this analysis draws from statutory regulations, policy documents, and comparative legal studies to assess Indonesia's legal preparedness for evolving cyber threats. The findings indicate that while foundational legal instruments exist, significant normative reforms are required to address sophisticated cybercrime, protect individual privacy rights, and maintain national digital security. The research concludes with actionable recommendations for legislative enhancement, institutional strengthening, and public-private collaboration to establish a robust, adaptive cybersecurity legal regime that meets international standards while addressing Indonesia's unique socio-legal context.

The principle of popular sovereignty is a fundamental foundation of the Indonesian democratic system, as stated in Article 1, Paragraph (2) of the 1945 Constitution. Popular sovereignty emphasizes the importance of the people's right to choose and be chosen in general elections (Pemilu) and regional elections (Pilkada), which serve as the source of legitimacy for a legitimate government. This sovereignty should reflect democratic values that are just and equal. However, in practice, the implementation of popular sovereignty through elections is often tarnished by money politics, which threatens the integrity of democracy itself. This phenomenon indicates a profound distortion of democratic principles, where the election process is more driven by material interests than by political aspirations and ideologies. Money politics not only undermines the quality of elections but also diminishes public trust in the democratic process. This practice allows voters to sell their votes in exchange for money or goods, leading to electoral injustice. It transforms general elections and regional elections from an ideal democratic process into a contest reliant on financial resources, rather than on the quality of the leaders chosen. This article aims to analyze the contradiction between the constitutional ideal of popular sovereignty and the reality of money politics in the administration of general elections and regional elections. This study employs a normative juridical approach with qualitative analysis techniques to explore how current laws have guaranteed the implementation of popular sovereignty. The findings indicate that although the legal framework provides protection for the principle of popular sovereignty, weak law enforcement and the persistent transactional political culture hinder its substantial realization. As a solution, this article recommends several strategic steps, including strengthening regulations to limit money politics, reforming the party system to reduce the dominance of practical politics, and enhancing political education based on democratic values and integrity. With these measures, the principle of popular sovereignty can be more purely and consistently upheld, ultimately strengthening Indonesia’s democratic system to be fair and sustainable.

This research aims to develop a recommendation system that can help retail business owners design more effective, data-driven promotional strategies. This system utilizes data mining techniques and the Apriori algorithm to extract association rules from consumer transaction data, thereby identifying more specific and accurate consumer purchasing patterns. Based on these patterns, the system can provide relevant promotional recommendations, such as product bundling, buy-one-get-one offers, or special discounts, which can attract consumer interest and increase sales. The system's implementation process is presented in the form of an interactive dashboard, which allows business owners to upload their transaction data, adjust analysis parameters, and visualize the promotional recommendation results in a way that is easier to understand and can be directly applied to their marketing strategies. This system not only provides well-structured promotional recommendations but also enables retail business owners to make more informed and efficient decisions in determining the type of promotion to implement, based on insights gained from analyzing their own transaction data. By utilizing this system, business owners can optimize their promotional strategies more efficiently and effectively, because they can quickly identify promotions that best suit consumer purchasing patterns. This can increase impulse sales, as relevant promotions will encourage consumers to purchase more products. Furthermore, this system shows great potential in increasing consumer engagement, as the promotions provided are more personalized and tailored to each consumer's preferences. Therefore, the implementation of this recommendation system has the potential to drive significant sales growth and help retail business owners achieve greater profits, as well as accelerate their business decision-making process. This system, ultimately, not only benefits business owners but also enhances the consumer shopping experience with promotions that are more tailored to their needs and preferences.

The development of information and communication technology has changed the global trade landscape, including in Indonesia. The city of Pekanbaru as the capital of Riau Province has great potential in the development of e-commerce that is integrated with the concept of a smart city. This research aims to analyze the optimization of e-commerce through the implementation of the smart city concept in Pekanbaru. Using a qualitative approach and secondary data analysis, this study examines technological infrastructure, government policies, and community participation in supporting the e-commerce ecosystem. The results show that the implementation of the smart city concept can improve the effectiveness of e-commerce platforms through improved digital connectivity, integrated payment systems, and more efficient logistics services. The adoption of technologies such as big data, Internet of Things (IoT), and geographic information systems (GIS) also supports more responsive decision-making, both by business actors and government agencies. In addition, the involvement of local MSMEs is an important component in expanding the adoption of e-commerce in an inclusive and equitable manner throughout the city. This research also highlights the importance of digital literacy among the public, including micro business actors, to optimize the use of digital technology in business transactions. The local government is expected to strengthen regulations, provide supporting infrastructure, and open cross-sector collaboration to accelerate digital transformation in Pekanbaru. A sustainable education strategy for the community is also needed through training, digital socialization, and technical support so that all levels of society can actively participate in the digital ecosystem. Thus, synergy between the government, business actors, academics, and the community is the main key in creating an adaptive, efficient, and sustainable digital ecosystem, as well as making Pekanbaru a smart city that excels in the field of electronic commerce.

The era of digital transformation and the Indonesia Golden 2045 agenda demands a new paradigm in governance that prioritises inter-institutional collaboration to achieve effective and responsive governance. This transformation has been accelerated by the implementation of the Electronic-Based Government SIstem (SPBE) and the enactment of Law No. 1 of 2024 concerning Information and Electronic Transactions (ITE). This study analyses the implementation of good governance through digital transformation and inter-institutional collaboration, evaluates the challenges and opportunities in the digital era, and formulates optimisation strategies to support the achievement of Indonesia's Golden 2045. The research employs a normative juridical method, incorporating both conceptual and statutory approaches, and is reinforced by a systematic literature review analysis of current regulations and case studies of SPBE implementation in various regions across Indonesia. Data were collected through documentary studies of 35 laws and regulations and analysis of 40 academic literature sources from the period 2020-2025. The implementation of good governance through digital transformation shows positive results with SPBE success at the regional level, a 28% increase in government effectiveness, and the development of integrated service platforms serving 72 million transactions annually. However, challenges remain in regulatory harmonisation (47% overlapping authorities), digital capacity gaps (34% of institutions not yet optimal), and sectoral culture among institutions. Inter-institutional collaboration through digital transformation demonstrates positive trends in realizing good governance, but requires strengthening of digital legal frameworks, development of technological infrastructure, and organizational culture transformation to support the achievement of the Indonesia Golden 2045 vision.

This study aims to design and develop a website-based library information system using the Agile method at SMK Azzahro Palembang. The Agile approach was chosen because it allows for an iterative, flexible, and collaborative software development process between the development team and end users. This process prioritizes speed in completing each development stage and allows for continuous improvement based on user feedback. The developed information system includes several key features, such as book data management, library member data, loan and return transactions, and online book catalog searches. Through this system, library management activities become more structured, efficient, and well-documented. In addition, users—both students and teachers—can easily access book availability information without having to come directly to the library, thus improving time efficiency. The trial results show that this system significantly improves the work efficiency of library staff and user convenience in accessing information. This study also notes the important contribution of the Kampus Mengajar program, which supports the transfer of information technology knowledge to schools and encourages increased digital literacy among students and education personnel. With this information system, it is hoped that library management at SMK Azzahro will be more modern, transparent, and support the school's literacy culture in a sustainable manner. In addition to the practical benefits, the development of this library information system will also have a positive impact on improving digital competency for all elements of the school. Teachers and administrative staff who were previously unfamiliar with intensive digital system use will receive training and mentoring throughout the implementation process. This will result in improved information technology skills that can be applied not only to library management.

Consumer protection in e-commerce transactions in Indonesia faces significant challenges due to the lack of specific regulations that clearly define the responsibilities of digital platforms. Law Number 8 of 1999 concerning Consumer Protection (UUPK) serves as the primary legal framework, but it has not adequately addressed the complexities of digital transactions, leading to legal uncertainty in resolving disputes and safeguarding consumer rights. This gap in the law leaves consumers vulnerable, as their rights are not clearly protected in the digital environment. One of the main issues is the low level of consumer legal literacy in Indonesia, which exacerbates the problem. Many consumers are unaware of their rights or how to enforce them, making it difficult for them to seek redress in case of problems with e-commerce transactions. This lack of understanding creates an environment where consumers are often left without proper recourse when facing issues such as faulty products, delayed deliveries, or breaches of personal data security. This study aims to identify the barriers to consumer protection in e-commerce and propose solutions to address these challenges. The study suggests that more comprehensive and adaptive regulations are needed to define the responsibilities of e-commerce platforms clearly. These regulations should include effective complaint mechanisms, stronger consumer data protection policies, and a framework for resolving disputes quickly and transparently. Additionally, the study emphasizes the need for stricter supervision and more robust law enforcement to ensure that digital trading platforms comply with consumer protection laws. The findings highlight the importance of creating a safe, fair, and trusted digital trading ecosystem in Indonesia, where consumers feel secure and are empowered to demand their rights. By implementing these recommendations, Indonesia can improve consumer protection in the digital economy, ultimately fostering a more sustainable and transparent e-commerce environment.  

This study aims to analyze the implementation of Value Added Tax (VAT) calculation, payment, and reporting at PT. PMP during the 2023 tax year. This study uses a qualitative descriptive approach with data collection techniques through interviews, direct field observations, and documentation studies of the company's tax archives and financial reports. The main focus of the study is to determine the extent of the company's compliance with tax regulations issued by the Directorate General of Taxes. The results show that PT. PMP has carried out its tax obligations in accordance with applicable laws and regulations, including the use of the e-Faktur application for issuing electronic tax invoices and e-Filing for reporting VAT Periodic Tax Returns. In the VAT calculation process, the company systematically classifies output and input tax invoices. However, several conditions of overpayment and underpayment were found due to the dynamic variation between output and input VAT, especially in transactions involving discounts and sales returns. Tax payments were generally made on time through the online billing system, although there was a two-day delay in one tax period due to internal administrative constraints. While reporting is consistent each month, several input errors due to human error were still found, such as incorrectly entered Tax Invoice Serial Numbers (NSFP) or transaction values. These errors were then corrected through the Periodic Tax Return correction mechanism. Overall, the company has demonstrated a strong commitment to fulfilling its tax obligations, but improvements are still needed, particularly in coordination between tax divisions, data validation prior to reporting, and increasing human resource capacity in utilizing the tax information system.

This study aims to analyze the influence of financial literacy, financial technology, and financial management on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Gresik Regency. The background of this study is based on the importance of strengthening the financial aspects of MSMEs as a foundation in facing the challenges of competition and economic uncertainty. The method used is a quantitative approach by distributing structured questionnaires to 96 MSMEs selected through a purposive sampling technique. The collected data were then analyzed using SPSS version 26 software to examine the relationships and influences between variables. The results show that financial literacy has a positive and significant influence on the financial performance of MSMEs. This means that the higher the level of understanding of MSMEs regarding financial management, the better the financial performance achieved. Similarly, the use of financial technology has also been shown to have a significant positive effect. The use of digital financial services such as mobile banking, e-wallets, and digital bookkeeping applications can help MSMEs simplify transactions, financial recording, and access to financing, which ultimately improves efficiency and business results. Meanwhile, the financial management variable shows a moderate influence on financial performance. This indicates that financial planning, recording, and control practices in some MSMEs are still suboptimal and need to be improved to contribute more significantly to business performance. Overall, these findings underscore the importance of improving financial literacy and adopting financial technology as key strategies for strengthening MSME performance. This research provides practical recommendations for MSMEs and stakeholders to enhance their financial management capacity to encourage sustainable business growth in the digital era.

This community service program aims to improve the capacity of 25 raw cassava chip MSMEs in Solok Regency through holistic training that integrates managerial, collaborative, and spiritual aspects. The activities are designed with the real needs of business actors in mind, both in terms of technical business management skills and strengthening business ethics values. The training is conducted in a classical manner through the delivery of entrepreneurship and financial management materials covering basic business management concepts, simple marketing strategies, and cash flow management. In addition, participants participate in group simulations and ice-breaking games to foster a spirit of collaboration and build trust among business actors. Assistance in financial recording practices is carried out using the financial records application v1.1, which is designed to facilitate recording daily transactions, tracking production costs, and simple profit and loss analysis. A special contemplation session is also held to foster awareness of ethics and spirituality in entrepreneurship, including the importance of honesty, social responsibility, and sincere intentions in running a business. The program is evaluated through a 20-question digital quiz taken by all participants. The evaluation results show a significant increase in the understanding of basic management concepts, cash flow recording skills, and a responsible attitude in managing the business. These findings confirm that a values-based training approach combined with hands-on practice can effectively strengthen the foundations of MSME sustainability, both in terms of operational performance and moral resilience. Given the positive results, this program is recommended for replication in other regions with similar business characteristics. Continued support from local governments, educational institutions, and business partners is essential to expand the program's impact, ensure business sustainability, and foster competitive and integrated community-based economic growth.

This study aims to develop a data security system for the Pancadaya Waste Bank web-based application by implementing a hybrid cryptography algorithm combining AES and RSA. The main problem identified is the vulnerability of manually recorded and unsecured transaction data. The research applied a qualitative approach through interviews with system users and the Environmental Agency, as well as literature reviews on hybrid cryptography algorithms. The system was developed using the Rapid Application Development (RAD) method and implemented using PHP, MySQL, and the OpenSSL library. The results show that the system successfully encrypts transaction data using AES and secures the AES key with RSA, thereby enhancing data security. Testing with GTmetrix indicates excellent application performance. Furthermore, the system can display and decrypt real-time transaction data in receipt form for both deposit and withdrawal processes. This application provides an innovative solution to data management and transaction security issues in digital-based waste bank systems.

The development of digital technology has brought about significant changes in people's transaction patterns, particularly with the increasing use of online platforms for buying and selling. This phenomenon provides convenience for consumers and merchants, but is also accompanied by a high rate of online fraud experienced by both consumers and merchants. This fraud can take the form of fraudulent transactions, goods not received, or identity fraud. Low public legal literacy regarding rights and obligations in digital transactions is one of the main causes of weak legal protection for fraud victims. Many consumers and merchants are unaware of their rights and the legal procedures to take when experiencing fraud. This community service activity aims to increase the legal understanding of the public, especially online merchants and consumers, regarding digital consumer protection and legal fraud handling mechanisms. The activity implementation methods included interactive legal counseling, distribution of closed-ended questionnaires, case study simulations, Q&A discussions on legal issues, and light consultations. A total of 60 respondents, consisting of 30 merchants and 30 consumers, participated in the closed-ended questionnaire. The results showed that the majority of participants did not fully understand their rights in digital transactions and were unaware of the legal procedures to take when experiencing fraud. Despite this, participant interest in legal education was very high, with over 75% stating they wanted further legal assistance. This activity is expected to provide the public with better insight into their rights and obligations in digital transactions, as well as raise awareness of the importance of legal protection in the digital age. This is expected to make the public more vigilant and protected from potential online fraud in the future. Furthermore, increased legal literacy is expected to create a safer and more trustworthy digital transaction ecosystem for all parties.

Through seminars and leadership training, the goal of this community service project is to identify an effective leadership model that will enhance the work ethic of Jumantik employees in Setu Village, East Jakarta. Participating in the Effective Leadership program in enhancing work ethics were 100 Jumantik cadres from the village, the heads of the Development of Family Welfare of Setu Village, Cipayung District, and RW in the Setu Village neighborhood of East Jakarta. Lecture and coaching techniques are used in the training process. As a result of this training, a leader must employ effective leadership techniques to enhance work ethic when overseeing Jumantik cadres. To improve the motivation, accountability, and discipline of Jumantik cadres, one successful leadership model employs a transformational and participatory leadership style. This approach encourages open communication and fosters a sense of belonging among the cadres. It has been demonstrated that cadres who regularly monitor mosquito larvae perform better under leadership that offers clear guidance, emotional support, and active involvement in decision-making. Furthermore, the training emphasizes the importance of collaboration and teamwork, which are essential for achieving common goals. Jumantik cadre supervisors are advised to participate in leadership training since effective leadership would facilitate the development of a more inclusive and cooperative leadership model. Thus, it is anticipated that the effective sub-district eradication of Dengue Hemorrhagic Fever (DHF) will be facilitated by the adoption of the appropriate leadership paradigm, ultimately leading to healthier communities and improved public health outcomes. This is expected to make the public more vigilant and protected from potential online fraud in the future. Furthermore, increased legal literacy is expected to create a safer and more trustworthy digital transaction ecosystem for all parties.

This study focuses on the development and implementation of “Pasar Kita,” a web-based marketplace system designed to facilitate digital transactions for traditional market sellers and consumers. The system was developed using PHP as the backend programming language and MySQL as the database management system. The purpose of this project is to address the digital gap experienced by traditional market vendors who have limited access to modern e-commerce platforms. The research includes a needs analysis, system design using UML diagrams, implementation of main features such as registration, login, product management, transactions, checkout, and order tracking, followed by system testing. The results show that all major functions operate properly, including user authentication, product uploads, order processing, and payment simulations via transfer or cash-on-delivery (COD). System testing indicates that the platform meets usability, functional, and responsiveness criteria. The findings highlight the system’s capability to support local economic digitalization by providing an accessible and user-friendly marketplace for traditional market vendors and consumers.

This study analyzes the opportunities and challenges in implementing digital payment systems to enhance the productivity of Micro, Small, and Medium Enterprises (MSMEs). In the era of growing digital transformation, the adoption of cashless transactions has become a crucial innovation to improve efficiency and competitiveness among MSME players. The findings indicate that the use of digital payment platforms such as QRIS, bank transfers, e-wallets, and card-based e-money offers several advantages, including faster payment processing, reduced risk of calculation errors, and the minimization of counterfeit money usage, which remains an issue in some regions. However, the implementation of digital payments still faces various obstacles on the ground. Certain sectors of MSMEs continue to rely heavily on cash transactions, especially in remote areas where internet connectivity is limited. Furthermore, many business owners still prefer conventional payment methods due to concerns over trust, security, and deeply rooted habits. Demographic factors also influence the level of digital payment adoption. Younger generations tend to be more adaptive to digital technologies, whereas older business owners are generally less familiar and comfortable with using digital devices. These findings suggest that in order to fully leverage the benefits of payment digitalization among MSMEs, strategic efforts are needed. These should include the improvement of digital infrastructure, widespread education and awareness programs, and the development of applications tailored to the specific needs and characteristics of each business sector. Collaboration between the government, financial institutions, and digital service providers is essential in creating an inclusive and user-friendly digital payment ecosystem. By addressing technical barriers and bridging digital literacy gaps, the implementation of digital payments holds significant potential to drive operational efficiency and sustainably boost the productivity of MSMEs.