The STS perspective reframes the economy not merely as a function of production and transaction, but as a complex interplay between:
Technological systems (e.g., digital platforms, AI, automation tools),
Organizational structures (e.g., firms, cooperatives, supply chains),
Socio-cultural dimensions (e.g., norms, trust, labor habits, communication).
This triadic interaction is crucial in understanding why certain innovations succeed or fail. For example, introducing QRIS (Quick Response Code Indonesian Standard) into small warungs does not guarantee usage or inclusion unless vendors possess smartphones, digital literacy, and trust in cashless systems. STS theory thus resists technological determinism and advocates for socio-technical alignment.
B. Indonesian Context: Digital Penetration Without Deep Integration
In Indonesia, STS theory becomes particularly relevant as we observe a paradoxical coexistence: rapid digital technology expansion (e.g., fintech, marketplaces, ride-hailing apps) on one hand, and resilient traditional practices on the other. The availability of technology does not automatically yield interconnection or integration across economic layers.
Key empirical observations include:
Many informal producers (e.g., small home industries, roadside vendors) do not transition into digital supply chains, even when consumer interfaces (like online marketplaces) flourish.
Organizational misalignment: These actors often lack legal status, banking access, or logistical networks required to function in a digital economy.
Social-cognitive gaps: Mistrust of online systems, preference for face-to-face transactions, or fear of being scammed hinder broader participation.
Furthermore, STS helps explain why digitalization can widen fragmentation rather than reduce it. Platforms might create new micro-jobs (e.g., courier, driver) but do so by bypassing traditional employment protections, causing a shift rather than an elevation in labor quality.
C. Implications for Layered Economic Models
STS theory compels us to recognize that introducing technology into an economic ecosystem requires concurrent adaptations in social norms, institutional frameworks, and operational logic. In the proposed 4-layer asymmetric economy model, STS underscores the importance of designing interoperable infrastructures, shared standards, and inclusive digital literacy programs that bridge---rather than bypass---lower economic layers.
Without such alignment, technology risks reinforcing silos, where digital ecosystems become exclusive rather than connective. As such, sociotechnical mediation, not just technological innovation, is essential to creating meaningful economic integration in Indonesia's layered economy.
3. Amartya Sen -- The Capability Approach
Amartya Sen's Capability Approach, developed in the 1980s, represents a paradigm shift in economic and development thinking. Instead of evaluating development solely through income, GDP, or resource access, the capability approach emphasizes the real freedoms individuals have to live the kinds of lives they value. This includes their actual ability to pursue goals, participate in society, and access opportunities---not just the presence of goods or services.
