I GEDE STHITAPRAJNA VIRANANDA
SARJANA - Ilmu Ekonomi
|Asal Perguruan Tinggi||Universitas Indonesia|
|Nama Prodi||Ilmu Ekonomi|
|Judul Karya Tulis||Despro: Strategi Pengembangan Klaster Industri Desa Berbasis Pemasaran E-commerce di Indonesia|
|Topik Karya Tulis||Pemerataan Pembangunan|
|Bidang Karya Tulis||IPS|
STRATEGY TO DEVELOP RURAL INDUSTRIAL CLUSTERS THROUGH E-COMMERCE MARKETING IN
By I Gede Sthitaprajna Virananda
The rural area plays a predominantly significant role in the economy of developing countries, including Indonesia. However, modernization of the economy has increasingly left behind the rural economy, causing issues related to the Sustainable Development Goals (SDGs). These issues include rural poverty (goal 1), underemployment and rural-urban migration (goal 8), and underdevelopment of industry and infrastructure (goal 9). To revitalize the rural economy, the government has attempted programs such as village funds and One Village One Product (OVOP), albeit with challenges and limitations. Allocation of village funds cannot always rely on infrastructure spending, while OVOP has been too dependent on the government for marketing. Meanwhile, e-commerce is growing rapidly in Indonesia, though the phenomenon is mostly urban. Despite this, the rise of Taobao Villages in China proves that e-commerce could be compatible with the rural economy, bringing many economic benefits such as employment creation and poverty alleviation. This case signifies an opportunity for Indonesia to leverage its vibrant e-commerce sector to empower rural economies.
The author proposes a solution called Desa Produksi Online (Despro), which entails developing rural industrial clusters and connecting them with e-commerce marketplaces. This program will leverage existing government programs such as village funds and OVOP. While analyzing the problem and elaborating this solution, this paper answers the following problems: how the government could develop the rural economy through Despro, how e-commerce marketing could be implemented in Despro, and what the benefits of this program for stakeholders are. This paper uses literature review with secondary data as the methodology. Data and research results help the author analyze the problem, while case studies, particularly of Taobao Villages in China, provide benchmarks to develop the recommendation.
To build the rural economy, the government should harness local potentials to develop the industrial sector as it could mitigate diminishing returns to labour in the agriculture sector. However, producers in Indonesia’s rural industries are hindered by several issues, including those related to marketing and financing. These issues include limited market scope, limited information on market price and trend, and limited access to business loans. By connecting rural producers with e-commerce, Despro could help address these issues. First, using e-commerce allows rural producers to easily access markets beyond the local area. Second, e-commerce marketplaces expose rural producers to various market information. Third, rural producers selling on e-commerce marketplaces leave track records that could be used for credit assessment for when they apply for a loan.
The implementation of the Despro program will have to involve multiple stakeholders such as e-commerce companies, logistics and internet services providers, and village cooperatives. In the initial phase, the government will have to identify potential villages where rural industrial clusters could be developed, with the help of the OVOP database. Partnership will then be conducted with e-commerce companies, which will provide facilitation and promotion services for the rural producers selling on their platform. To facilitate e-commerce activities by rural producers, the author proposes the Agen Despro system, which leverages a network of agents recruited by partnering e-commerce companies from the local community to not only help buyers but also rural sellers. Meanwhile, the government will have to develop rural internet and logistics infrastructure to support e-commerce activities. Village cooperatives could also be involved to provide supporting functions, such as e-commerce marketing services and bulk-buying for rural industrial clusters. In some villages where the construction of basic infrastructure has been sufficient, village funds could be channeled to finance various parts of the Despro program.
There are various benefits to gain from the Despro program for the stakeholders involved. Rural producers will be facilitated to sell on e-commerce, giving them wider market access, more market information, and easier access to loans. Despro will also incentivize the development of rural industrial clusters, which create external economies of scale and reduce transaction costs for the rural producers in them. For e-commerce partners as well as logistics and internet companies, Despro will help them tap into rural markets for expansion. In conclusion, Despro will boost employment, alleviate poverty, and strengthen the country’s industrial base by connecting potential villages with e-commerce.
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