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Indonesia continues to face challenges in efforts to encourage digital transformation, especially in the economic sector. Based on the Digital Readiness Index report in 2021, Indonesia's digital readiness level is not satisfactory enough while at the Southeast Asian level, the progress of digitalization in Indonesia is still lagging several countries. This research design is in the form of literature review research or literature review by investigating and analysing relevant text sources to understand certain topics. This research is a descriptive analysis used to collect qualitative data that produces a detailed description of a research topic or problem. The results of this study show that digital transformation requires adaptive, innovative, and inclusive digital leadership. Digital leaders must have a clear vision, adaptability, and customer focus. Digitalization is changing business models, operations, and organizational culture, requiring leadership strategies that drive technological change and empower employees. Inclusive leadership emphasizes the importance of diversity and inclusion in enhancing innovation and organizational effectiveness. Some recommendations that can be addressed to regulators include that regulators should create policies that encourage the adoption of digital technology in various sectors, including incentives for digital training and technological innovation. Policies that promote diversity and inclusion in leadership must be implemented. Regulators should provide guidance and resources for conflict management in a digital environment
Widiyati et al. (Tue,) studied this question.