Indonesia targets zero poverty in Nusantara via MSME digitalization

Indonesia is prioritizing the economic empowerment of local businesses as it develops its future capital, Nusantara (IKN). The government, through the IKN Authority (OIKN), is focusing on digital inclusion for micro, small, and medium enterprises (MSMEs) in the region, aiming for a zero-poverty target by 2035.

Digitalization as a Pathway to Prosperity

The OIKN is implementing programs designed to foster a thriving digital ecosystem for MSMEs. These initiatives include facilitating online sales, providing marketing and promotional support, offering incentive schemes, and delivering capacity-building programs.

Strategic Focus on Buffer Zones

The sub-districts of Samboja and West Samboja in Kutai Kartanegara have been identified as strategically important buffer zones for IKN. These areas contain 13 and 10 villages, respectively, and are the initial focus of capacity-building efforts.

Did You Know? The Indonesian government has set a target of achieving zero poverty in Nusantara (IKN) by 2035.

Recent workshops, conducted in collaboration with Bank Indonesia (BI), have focused on improving digital finance literacy and ensuring product legality among 60 MSME owners from each of the targeted sub-districts. The goal is to help these businesses grow in tandem with the development of the new capital city.

Expert Insight: Prioritizing MSME development through digitalization is a common strategy for inclusive growth in large-scale infrastructure projects. By equipping local businesses with the tools and knowledge to participate in the new economy, the IKN Authority aims to ensure that the benefits of development are widely shared.

Conrita Ermanto, Deputy for Community Empowerment at the OIKN, stated that these activities and programs are being organised and implemented to support IKN’s development goals.

Frequently Asked Questions

What is the primary focus of the IKN Authority’s efforts?

The IKN Authority is focused on fostering an enabling digital ecosystem for local micro, small, and medium enterprises (MSMEs).

Where are the initial capacity-building programs being held?

The initial workshops are being held in the sub-districts of Samboja and West Samboja in Kutai Kartanegara.

What is the stated goal regarding poverty in Nusantara?

The Indonesian government has a target of achieving zero poverty in Nusantara by 2035.

As IKN continues to develop, the OIKN will expand these programs to other surrounding areas. Further collaboration with Bank Indonesia could lead to more specialized training programs. A possible next step may be the introduction of new incentive schemes to encourage greater MSME participation in the digital economy.