The Subsidy Trap: Transforming SiBakul Jogja from an 'Incentive Distributor' into a Data-Driven Independent Digital Ecosystem

Abstract

Purpose: This case study aims to evaluate the sustainability of the government's digital platform, SiBakul Jogja, which faces fiscal risks due to its dependence on a shipping subsidy business model. This study analyzes the platform's performance paradox and formulates a transformation strategy from being merely an "incentive distributor" to becoming an independent digital ecosystem that has long-term resilience without relying entirely on the Regional Revenue and Expenditure Budget (APBD). Design/methodology/approach: This study applies a mixed-method approach. The analysis was conducted on secondary data on platform performance in 2025 (covering 314,433 transactions) and primary data from two separate surveys: a consumer behavior survey (n=188) and an MSME partner satisfaction survey (n=252) in the Special Region of Yogyakarta. The data was analyzed descriptively to identify patterns of supply-demand mismatch and subsidy dependency elasticity. Findings: The findings reveal the phenomenon of the "Subsidy Trap," in which 94.7% of consumers are absolutely dependent on the free shipping feature. Resource allocation inefficiencies were identified in the form of supply-demand mismatch: product supply was dominated by the Fashion category (25.1%), but 93.6% of real demand was for perishable Culinary products. The study concludes that a strategic pivot is needed through Design-Reality Gap mitigation, the application of a Focus Strategy in the B2G/Corporate market, and the integration of Quadruple Helix collaboration to share the logistics burden. Originality/value: This research makes a critical contribution to the E-Government literature by challenging the effectiveness of government marketplace models that mimic the private sector without venture capital support. This study offers a new framework for public digital initiatives to shift from price wars to monetizing institutional assets (institutional trust) and cross-sector collaboration.