B. Unresolved Gap: Non-linear Horizontal Segmentation in the Economy
While classical and contemporary theories offer insightful frameworks to understand economic stratification, a persistent analytical blind spot remains: non-linear horizontal segmentation that characterizes economies like Indonesia's. Much of the literature continues to frame development in vertical, linear terms---from informal to formal, from rural to urban, from offline to online, or from low-tech to high-tech. These assumptions, while useful in certain contexts, fail to capture the complexity and simultaneity of multiple economic logics coexisting in one national system.
Indonesia presents a case of structural pluralism: four distinct layers of economic activity---traditional cash-based micro-economies (Layer 1), formal-industrial modernity (Layer 2), platform-mediated digital ecosystems (Layer 3), and emergent AI-augmented systems (Layer 4)---not only coexist but often function in parallel rather than in sequence. In many regions, there is no clear "upgrade path" from one layer to another. A street vendor accepting QRIS payments (Layer 1+3) may never enter formal employment (Layer 2), nor will a small family-run factory (Layer 2) be captured by algorithmic market models (Layer 4) without formal data trails.
What remains inadequately theorized is the horizontal disconnect---not between sectors (e.g., agriculture vs. manufacturing), but between layers of economic infrastructure, norms, and technologies. These layers are often marked by incompatibilities in transaction logic, knowledge systems, capital formation, and institutional support. Digitalization, far from integrating these layers, often deepens their asymmetries by privileging visibility, formality, and data-centric models.
Moreover, existing empirical work tends to isolate each layer in disciplinary silos: development economists study Layer 1; industrial economists focus on Layer 2; digital economists on Layer 3; and AI-focused analyses often neglect socioeconomic contexts altogether. Very few studies attempt to model inter-layer dynamics, especially how discontinuities and misalignments across layers affect employment absorption, wage fairness, supply chain resilience, and market access.
This paper aims to fill that gap by proposing a 4-Layer Asymmetric Economy Model that treats each layer as a distinct but interacting subsystem. We argue that economic robustness in such a stratified landscape depends not on universal formalization or linear progression, but on the healthy interconnection of diverse layers, including those that are persistently informal, analog, or relational in nature. Understanding and designing for horizontal asymmetries---rather than erasing or forcing homogenization---may offer a more grounded and effective pathway to inclusive development.
3. Conceptual Framework
A. Definition and Characteristics of Each Layer (1 to 4)
The proposed 4-Layer Asymmetric Economy Model conceptualizes the Indonesian economy as composed of four relatively autonomous but overlapping strata. Each layer represents not merely a stage of development, but a distinct socio-technical-economic regime with its own norms, infrastructures, actors, and logics of operation. Below are the core definitions and characteristics:
Layer 1: Traditional Informal Economy (Cash-Based, Relational, Ground-Level)
Definition: Economic activities that are informal, low-capital, highly relational, and primarily cash-based. This layer includes street vendors, mobile food sellers, market stall operators, and informal service providers who use minimal technology and operate outside formal regulatory systems.
