Optimizing the Role of MSMEs in Driving Regional Economic Growth Through Digital Transformation and Local Technology-Based Innovation In Indonesia
Keywords:
MSMEs, Regional Economy, Local Technology
Abstract
This article aims to critically analyze how the strategy of optimizing the role of MSMEs in the digital economy ecosystem can encourage sustainable regional economic growth. This research uses a library research method, with narrative data analysis that emphasizes extracting, interpreting, and telling experiences or phenomena based on existing literature. The results show that optimizing the role of MSMEs in regional economic growth can be achieved through digital transformation and local technology-based innovation. Collaborative support from the government, private sector, and community is needed so that MSMEs are able to adapt, improve competitiveness, and create an inclusive and sustainable economy.
References
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https://www.ijble.com/index.php/journal/article/view/1049
Sarfiah, S., Atmaja, H., & Verawati, D. (2019). MSMEs as Pillars of Building the National Economy. REP Journal (Research on Development Economics), 4(2), 1–189. https://doi.org/10.31002/rep.v4i2.1952
Sari, D. (2021). Sustainability of Digital Technology Implementation by MSMEs: A Case Study in Nglanggeran Village. Journal of Community Empowerment, 5(2), 78-89.https://jahe.or.id/index.php/jahe/index.
Sedyastuti, K. (2018). Analysis of MSME Empowerment and Increasing Competitiveness in the Global Market. INOBIS: Indonesian Journal of Business Innovation and Management, 2(1), 117–127. https://doi.org/10.31842/jurnal-inobis.v2i1.65
Siagian, FG, Fajri, S., & Marpaung, M. (2025). Empowering MSMEs in Development Economics as a Solution to Poverty Reduction and Welfare Improvement. 1, 108–117. https://doi.org/10.59841/jureksi.v3i1.2296
Simangunsong, BYP (2022). Opportunities and Challenges of Micro, Small, and Medium Enterprises (MSMEs): A Systematic Literature Review. JUREKA (Journal of Development Economics), 25–39. https://jureka.fekonubt.net/index.php/jureka/article/view/21
Sofyan, S. (2017). The Role of MSMEs (Micro, Small, and Medium Enterprises) in the Indonesian Economy. Bilancia Journal, 11(1), 33–59. file:///C:/Users/Asus/Downloads/298-Article Text-380-1-10-20180728-3.pdf
Suryanti, E., Lesmana, H., & Mubarok, H. (2021). Marketing Strategy Analysis to Increase MSME Revenue. Permana: Journal of Taxation, Management, and Accounting, 13(1), 60–72. https://doi.org/10.24905/permana.v13i1.117
Al Farisi, S., Iqbal Fasa, M., & Suharto. (2022). The Role of Micro, Small, and Medium Enterprises (MSMEs) in Improving Community Welfare. Journal of Islamic Economic Dynamics, 9(1), 73–84. https://doi.org/10.53429/jdes.v9ino.1.307
Aliyah, AH (2022). The Role of Micro, Small, and Medium Enterprises (MSMEs) in Improving Community Welfare. WELFARE Journal of Economics, 3(1), 64–72. https://doi.org/10.37058/wlfr.v3i1.4719
Anggraeni, WC, Ningtiyas, WP, Alimah, M., & Malang, UM (2021). Government Policy in Empowering MSMEs During the Covid-19 Pandemic in Indonesia. Journal of Government and Politics (JGOP), 3(1), 47–65.
Apriani, T. (2020). Economic Empowerment Strategy for MSMEs as an Impact of the Acceleration of Digital Transformation Towards the 5.0 Era. Faculty of Sharia and Islamic Economics, Tribakti Lirboyo Islamic University, Kediri, Indonesia. 81–86. https://prosiding.uit-lirboyo.ac.id/index.php/psh/article/view/319
Ariani, AD, Zouly, D., Cahyono, I., & Azizah, RN (2024). Empowering MSMEs as a Government Strategy to Reduce Poverty in Indonesia 2020–2023. 3(2), 91–103. https://doi.org/10.59525/jess.v3i2.560
Bagus Budi Sajiwo, Saefulloh Kahfi, Bunga Cahyaningrum, & Waliko. (2023). Assisting MSMEs with the Asset-Based Community Development (ABCD) Approach in Pamijen Village, Baturraden, Banyumas. Kampelmas, 2(1), 71–80. Retrieved from https://proceedings.uinsaizu.ac.id/index.php/kampelmas/article/view/644
Debi, F., Sadikin, AA, & Iip, S. (2021). Systematic Review: Empowerment Strategy for MSMEs Towards a Digital Economy Through Social Action. DIKLUS: Journal of Non-School Education, 05(01), 1–13.http://dx.doi.org/10.21831/diklus.v5i1.37122.
Dewi, IK, R. Pandin, MY, & Daeng GS, A. (2022). Improving MSME Performance Through Financial Management. JEA17: Journal of Accounting Economics, 7(01), 23–36. https://doi.org/10.30996/jea17.v7i01.6551
Felix Sevanov Gilbert, WS (2022). Empowering MSMEs as Drivers of National Economic Recovery Through Optimizing Digital Industry 4.0. Global Komunika, 5(1), 2–10. https://doi.org/10.33822/gk.v5i1.3290
Firdausya, LZ, & Ompusunggu, DP (2023). Micro, Small, and Medium Enterprises (MSMEs) in the 21st Century Digital Era. Tali Jagad Journal, 1(1), 16–20. https://journal.unusida.ac.id/index.php/tali-jagad/index%7C
Hidayat, A., Lesmana, S., & Latifah, Z. (2022). THE ROLE OF MSMEs (MICRO, SMALL, MEDIUM ENTERPRISES) IN NATIONAL ECONOMIC DEVELOPMENT. 3(6), 6707–6714.
Mulyadi, T., Wahab, A., Lubis, R., & ... (2023). Empowering Local MSMEs Through Digital Marketing and E-Commerce Training. … Journal: Jurnal …, 4(6), 11624–11628. http://journal.universitaspahlawan.ac.id/index.php/cdj/article/view/22601%0Ahttp://journal.universitaspahlawan.ac.id/index.php/cdj/article/download/22601/15829
NAIMAH, RJ, WARDHANA, MW, HARYANTO, R., & PEBRIANTO, A. (2020). Implementation of Digital Marketing as a Marketing Strategy for MSMEs. IMPACT Journal: Implementation and Action, 2(2), 39. https://doi.org/10.31961/impact.v2i2.844
Nugroho, A. (2023). The Role of the Private Sector in Local Economic Empowerment: A Case Study of MSMEs in Yogyakarta. Journal of Technology and Society, 4(1), 15-30.
Nurina, L., Magisa, NS, & Ekobelawati, F. (2024). Community Economic Empowerment Through Digital-Based Micro, Small, and Medium Enterprises (MSMEs) Development. 4(6). https://doi.org/10.31004/jh.v4i6.1751
Nurul Aflah Harahap, KT (2022). 228-235+MSMEs+And+Development. CEMERLANG: Journal of Management and Business Economics, Vol. 2(2), 228–235.https://doi.org/10.55606/cemerlang.v2i2.652
Rijal, S., et al (2025).The Influence of Economic Literacy, Entrepreneurship Education and Entrepreneur Mindset in Improving The Competitiveness of Small and Medium Enterprises" (SMES) with Business Performance as a Moderator Variable. Vol. 6 No. 1 (2025): International Journal of Business, Law, and Education.
https://www.ijble.com/index.php/journal/article/view/1049
Sarfiah, S., Atmaja, H., & Verawati, D. (2019). MSMEs as Pillars of Building the National Economy. REP Journal (Research on Development Economics), 4(2), 1–189. https://doi.org/10.31002/rep.v4i2.1952
Sari, D. (2021). Sustainability of Digital Technology Implementation by MSMEs: A Case Study in Nglanggeran Village. Journal of Community Empowerment, 5(2), 78-89.https://jahe.or.id/index.php/jahe/index.
Sedyastuti, K. (2018). Analysis of MSME Empowerment and Increasing Competitiveness in the Global Market. INOBIS: Indonesian Journal of Business Innovation and Management, 2(1), 117–127. https://doi.org/10.31842/jurnal-inobis.v2i1.65
Siagian, FG, Fajri, S., & Marpaung, M. (2025). Empowering MSMEs in Development Economics as a Solution to Poverty Reduction and Welfare Improvement. 1, 108–117. https://doi.org/10.59841/jureksi.v3i1.2296
Simangunsong, BYP (2022). Opportunities and Challenges of Micro, Small, and Medium Enterprises (MSMEs): A Systematic Literature Review. JUREKA (Journal of Development Economics), 25–39. https://jureka.fekonubt.net/index.php/jureka/article/view/21
Sofyan, S. (2017). The Role of MSMEs (Micro, Small, and Medium Enterprises) in the Indonesian Economy. Bilancia Journal, 11(1), 33–59. file:///C:/Users/Asus/Downloads/298-Article Text-380-1-10-20180728-3.pdf
Suryanti, E., Lesmana, H., & Mubarok, H. (2021). Marketing Strategy Analysis to Increase MSME Revenue. Permana: Journal of Taxation, Management, and Accounting, 13(1), 60–72. https://doi.org/10.24905/permana.v13i1.117
Published
2025-10-13
How to Cite
Syamsu Rijal, & Mustari. (2025). Optimizing the Role of MSMEs in Driving Regional Economic Growth Through Digital Transformation and Local Technology-Based Innovation In Indonesia. International Journal of Technology and Education Research, 3(04), 185-194. https://doi.org/10.63922/ijeter.v3i04.2378
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