Toward Digital Technology Maturity: Empowering Small Medium Enterprise in Sleman Yogyakarta Indonesia Toward Sustainable Tourism and Creative Economy Development

In the era of global tourism and creative economies, digital technology maturity has emerged as a critical factor for the sustainable development of small and medium enterprises (SMEs) in Indonesia. This research is implemented to find out current digital technology maturity levels among SMEs in the subdistrict of Cangkringan, district of Sleman, Yogyakarta, Indonesia, highlighting their role in fostering sustainable tourism and creative economic growth. Using a mixed-method approach, the research combines qualitative insights from in-depth interviews with three local government representatives and Focus Group Discussion with 15 SMEs in the area. Additionally, a quantitative analysis of SMEs across various sectors, including crafts and culinary services, supports the study’s conclusions. The finding reveals a significant gap between government’s training programs and the digital literacy of SMEs as well as a lack of affordable technological resources which could impede the full realization of digital benefits. Strengthening digital technology maturity among SMEs is essential for enhancing their competitiveness and long-term sustainability, yielding both financial and non-financial benefits. This also contributes to find out digital literacy gaps, impact on competitiveness and sustainability, policy and stakeholder recommendations, and government action. These insights offer valuable guidance for policymakers and stakeholders striving to support the digital transformation of SMEs in similar settings. The study also sheds light on digital literacy gaps, their impact on competitiveness and offers policy recommendations for government and stakeholders to address these challenges such as through government and community collaboration.