Platform Governance And Democratic Legitimacy: Public Policy Challenges In Indonesia's Digital Economy

Abstract

The rapid expansion of digital platforms has transformed relationships among governments, markets, and citizens while creating new questions about regulatory authority and democratic accountability. This study examines how platform governance reshapes democratic legitimacy in Indonesia's digital economy and identifies the public policy arrangements required to reconcile technological innovation with democratic values. Using a qualitative Systematic Literature Review guided by PRISMA 2020 and complemented by interpretive policy analysis, the study synthesizes 40 peer-reviewed articles published between 2018 and 2025. The review shows that scholarship is concentrated in developed democracies, is dominated by qualitative approaches, and remains theoretically fragmented across governance, institutional, network, platform, algorithmic governance, and legitimacy perspectives. The findings indicate that legitimacy deficits arise when platforms exercise quasi-regulatory power through opaque algorithms, privately defined rules, and asymmetric access to data without adequate public oversight. Building on the synthesis, this study proposes the Democratic Platform Governance Framework, which connects governance inputs, processes, outputs, and democratic outcomes. Transparency, accountability, participation, fairness, and institutional adaptability constitute its core governance processes. The framework argues that effective platform governance requires both institutional capacity and democratic safeguards. For Indonesia, the priority is integrated regulatory coordination, algorithmic oversight, independent accountability mechanisms, participatory policymaking, and continuous development of technological expertise.