The Digital Gap and the Competitiveness of MSMEs in the Eastern Region of Indonesia: An Inclusive Regional Development Policy Agenda
DOI:
https://doi.org/10.67740/geoeconomics.v1i2.33Kata Kunci:
Digital divide, Eastern Indonesia, MSME competitiveness, Regional development, Digital transformationAbstrak
Digital transformation creates new opportunities for micro, small and medium enterprises (MSMEs), yet its regional benefits are uneven. This study examines how the digital divide shapes MSME competitiveness in Eastern Indonesia and formulates an inclusive regional development policy agenda. The study applies an integrative literature review and policy analysis to 37 recent sources, consisting of peer-reviewed studies and official statistical and planning documents published mainly during 2021–2026. The evidence is synthesized into five analytical dimensions: digital infrastructure, digital capabilities, productive technology use, regional entrepreneurial ecosystems, and policy coordination. Official statistics show a persistent spatial gap. In 2024, 72.78% of Indonesians accessed the internet, while the corresponding rate in East Nusa Tenggara was 54.84%; within that province, access reached 76.88% in urban areas but only 46.73% in rural areas. The review indicates that connectivity alone is insufficient to strengthen MSME competitiveness. Digital infrastructure must be complemented by managerial digital literacy, e-commerce and payment capabilities, logistics, financing, local mentoring, and regional market integration. The article proposes a place-based policy framework that links last-mile connectivity, productive digital skills, MSME process digitalization, digital finance, and local value-chain development. The main contribution is to reposition MSME digitalization from a technology-adoption agenda toward a regional competitiveness and inclusion strategy for Eastern Indonesia.
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Hak Cipta (c) 2026 Muh. Irshan Sachrir (Penulis)
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