Indonesia Targets Zero Poverty in New Capital with MSME Digitalization Drive
Table of Contents
Indonesia is prioritizing the economic empowerment of local businesses through a comprehensive digitalization strategy as it builds Nusantara (IKN), its future capital city. The initiative, spearheaded by the IKN Authority (OIKN), aims to achieve zero poverty in the region by 2035 and ensure equitable welfare for all residents.
Building an Inclusive Economy in Nusantara
The ambitious project, currently under construction in North Penajam Paser and Kutai Kartanegara districts of East Kalimantan Province, is placing significant emphasis on fostering a thriving ecosystem for micro, small, and medium enterprises (MSMEs). According to a senior official, “We are organizing and implementing a range of activities and programs to support IKN’s development goals, including the zero-poverty target by 2035.”
This approach recognizes the crucial role MSMEs play in stimulating local economies and creating sustainable livelihoods. The OIKN is actively pursuing initiatives such as online sales facilitation, targeted marketing and promotion support, incentive schemes, and comprehensive capacity-building programs.
Collaboration with Bank Indonesia to Enhance Financial Literacy
A key component of this strategy involves a close partnership with Bank Indonesia (BI). The collaboration focuses on empowering MSMEs and guiding them to actively contribute to the economic development of the future seat of government.
Specifically, the OIKN and BI have jointly conducted workshops in the sub-districts of Samboja and West Samboja in Kutai Kartanegara. These workshops are designed to improve digital finance literacy and ensure the legality of products offered by local businesses. Samboja and West Samboja are strategically positioned as buffer zones for the planned city, encompassing 13 and 10 villages respectively.
Capacity Building for Sustainable Growth
The capacity-building program has already reached 120 MSME owners – 60 from each sub-district – equipping them with the skills and knowledge to enhance their competitiveness and professionalism. The program is intentionally designed to facilitate the growth of local businesses in tandem with the overall development of Nusantara. As one official explained, the goal is to help local businesses “grow side by side with IKN’s development.”
This targeted investment in MSMEs underscores Indonesia’s commitment to inclusive growth and ensuring that the benefits of the new capital are shared by all segments of society.
