Vol. 17 No. 1 (2025)

The Indonesian government has initiated the implementation of Digital ID or Digital Population Identity (IKD) as part of the national digital transformation strategy, particularly in supporting the Electronic-Based Government System (SPBE) and the integration of public services. However, IKD adoption remains relatively low. This is indicated by the high demand for e-KTP forms over the past 5 years, especially since the IKD was implemented in 2022. Based on these conditions, this study asks three main questions: (1) What are the strengths and strategic opportunities that support the implementation of IKD? (2) What are the real results and public aspirations regarding the implementation of IKD? and (3) How can IKD support digital transformation in Indonesia?
This study employed an explanatory sequential mixed-methods approach. The quantitative phase was conducted first through a survey of 688 respondents who assessed eight policy alternatives based on effectiveness, efficiency, and impact. A thematic analysis of open-ended responses in the same questionnaire followed the qualitative phase. All data were then analyzed using the SOAR (Strengths, Opportunities, Aspirations, Results) framework to map policy strategies based on strengths, opportunities, public expectations, and expected outcomes.
The research results showed that the main strength lies in a centralized population data infrastructure and continuously evolving regulations. Strategic opportunities include the integration of IKD into the Priority Population Data Service (SPBE) through GovTech INA Digital, as well as the utilization of digital data verification in the financial and banking sectors. Public aspirations are reflected in the need for digital literacy and better personal data protection, while expected outcomes, such as optimizing IKD-based public services, have not been fully achieved. Meanwhile, IKD has not been fully able to support the digital transformation process in Indonesia.
This study concludes that digital information technology (IKD) policy strategies need to be directed at integrating IKD with public services, strengthening cross-sector collaboration, developing responsive regulations, and conducting massive and inclusive public education. These findings contribute to the formulation of service-oriented, evidence-based, and sustainable digital transformation policies to support digital transformation in Indonesia.

The Special Economic Zone (SEZ) in Galang Batang, Bintan Regency, Indonesia, plays a crucial role in regional economic development by leveraging the area’s strategic location and natural resources. The purpose of this study is to examine the collaborative governance model employed in managing the Galang Batang SEZ, focusing on the challenges and factors influencing the collaboration between various stakeholders, including government bodies and business entities. This study used a qualitative descriptive research approach; both secondary and primary data were gathered to analyze the existing conditions within the SEZ. Data analysis involved pattern matching, explanation development, and the construction of logical models to provide a comprehensive understanding of the governance processes. The results indicate that while there is an effort to coordinate between stakeholders, challenges remain in integrating services and ensuring effective collaboration due to overlapping functions within the One Stop Investment and Integrated Services Office. Despite these challenges, the study highlights the importance of cooperative leadership and the role of the local government in supporting the SEZ’s operations. The findings suggest that addressing institutional fragmentation and enhancing human resource development are critical to improving the efficiency and success of the governance model. In conclusion, while the current collaborative governance structure in the Galang Batang SEZ faces operational hurdles, improvements in service delivery and inter-institutional coordination are essential to realize the full potential of this economic initiative.

According to data from the Central Statistics Agency for 2022, 66.48% of Indonesians have accessed the internet. This trend supports the rapid development of digitalization in payment systems, particularly with the use of Quick Response Indonesia Standard (QRIS). QRIS aims to enhance transaction efficiency, accelerate financial inclusion, and advance micro, small, and medium enterprises (MSMEs). The shift in consumer behaviour towards digital transactions due to their efficiency and speed has forced MSMEs to adapt by adopting QRIS for their payment systems. This adoption of QRIS by MSMEs will undoubtedly impact their business operations and the number of workers they need. This study uses linear regression with the Two-Stage Least Squares (2SLS) model to examine the relationship between the adoption of QRIS in cashless payment systems and the number of workers required by MSMEs. This approach is applied to address potential endogeneity arising from reverse causality, where QRIS adoption may influence labour demand, but labour capacity might also affect the decision to adopt QRIS, as well as omitted variable bias that could be correlated with both QRIS adoption and employment levels. The result indicates that QRIS has a significant positive direct effect. Although this finding does not align with the Routine-Biased Technical Change (RBTC) theory, which suggests that technology replaces routine workers, the study finds that MSMEs still need workers to serve customers and tally transaction totals (routine workers) before customers make payments through QRIS. Additionally, MSMEs are increasing their workforce by hiring family members or relatives (non-routine workers) to support their operations.

Investment is one of the key factors that affect economic dynamics. This research focuses on the Bangka Belitung Islands Province, specifically its investment in the tin and non-tin sectors, as the largest tin-producing area in the world. Investment is an important component in capital formation; investment has great potential to spur economic growth, improve people's quality of life, and reduce social problems such as poverty and unemployment. The aim of this research is to determine the effect of investment in the tin and non-tin sectors on economic growth, the Human Development Index, poverty levels, and unemployment rates in the Bangka Belitung Islands Province from 2018 to 2023. Associative quantitative research type, with multiple regression analysis tools. The research results indicate that investment in the tin sector has a positive impact, while investment in the non-tin sector has a negative impact on economic growth; however, this effect is not statistically significant. Tin sector investment and non-tin sector investment have a negative impact on the Human Development Index, although it is not statistically significant. Tin sector investment has a positive and significant effect, while non-tin sector investment has a negative effect on poverty levels, but this effect is not statistically significant. Investment in the tin sector and non-tin investment have a negative effect on the unemployment rate, but this effect is not significant.  The conclusion from research over the last six years is that investment conditions have decreased significantly. This decline began with the COVID-19 incident in 2019, and that had an impact on economic and social development. The solution needs to be more proactive in both the government and private sectors to increase investment from investors, both domestic and foreign. Apart from that, there is a need to set a quality investment strategy so that the investment can be beneficial for increasing socio-economic development, especially in the Bangka Belitung Islands Province.

Tourism development in small island regions such as Larea-rea Island holds great potential to contribute to local economic growth. However, limited infrastructure, inconsistent governance, and low community participation have hampered realizing this potential. This study aims to analyze the role of local government in developing tourism on Larea-rea Island, Sinjai Regency. This study used a qualitative descriptive approach and was conducted from January to March 2024 on Larea-rea Island, located in the Sembilan Island sub-district. Data was collected through field observations, in-depth interviews with stakeholders, including the Tourism and Culture Office of Sinjai Regency, village government officials, and local visitors and supplemented by document analysis. The findings indicate that tourism development on Larea-rea Island remains constrained by inadequate supporting facilities, fluctuating visitor numbers, limited environmental management, and low levels of promotion continuity. The local government has attempted to address these issues through infrastructure development, tourism promotion via social media, environmental conservation efforts, and community empowerment through tourism awareness groups (Pokdarwis). The analysis shows that while these initiatives have had a positive impact, they require stronger coordination, integrated planning, and sustainable policy support. This study concludes that the role of local government must evolve beyond infrastructure provision toward strategic governance that fosters inclusive community participation and long-term destination sustainability.

Integrated rural areas development is strategically bolstering the success of equitable development in Indonesia. According to Village Law, rural areas are defined as clusters of villages with geographical proximity, similar superior commodities, common purpose, and government support in overcoming various basic issues, including expanding economic scale. Complying with the policy, this study aims to analyze the economic growth of rural areas, which focus on 62 National Priority Rural Areas as stated in the 2020–2024 National Medium Term Development Plan. The spatial analysis method examines intra-regional impacts on the increase of Village Original Income (VOI) as a result of economic agglomeration utilizing panel data at the village level. According to the findings, there is a considerable spatial correlation or positive spillover impact among the nearby villages in rural areas, which may further enhance and strengthen local economies. Additionally, the PSM-DiD method is applied to investigate whether the National Priority Rural Areas Development Policy influences the growth of VOI. However, the result hasn't yielded any convincing evidence of the beneficial effects of policy implementation in a short period. Despite the interaction result being frequently positive, it is unclear whether this policy drives the increase of VOI in rural areas significantly. Progressive intervention is needed from the governments at every level, from planning and implementation to evaluation. Besides, collaboration between different stakeholders, including the private sector and off-takers, is necessary to expedite the growth of the local economies and boost regional productivity.

The government is actively campaigning for the asset manager paradigm as a new approach to realizing more effective and efficient asset management. However, until now, local governments are still struggling to evaluate the success of the asset manager paradigm due to the lack of adequate measurement instruments. This research aims to evaluate the success of the asset manager paradigm in managing Regional Property (BMD). Evaluation of the success of the manager asset paradigm can be carried out using the asset manager paradigm success index model, which is a composite index of success indicators in activity dimensions that require an asset manager paradigm perspective. These activities include planning needs and budget, use, utilization, as well as security and maintenance. The data used in this research is secondary data in the form of Financial Reports from the DIY Regional Government. This data is used to measure the success of the asset manager paradigm with relevant indicators and formulas. The evaluation results showed a decrease in the average value of the three-dimensional indicators measured and an increase in one other dimensional indicator. The evaluation results also showed that there was still room for Regional Apparatus Organizations (OPD) within the DIY Regional Government to increase the spirit of the asset manager paradigm in BMD management. This research produces a measurement model that can be used by local governments to evaluate the success of the asset manager paradigm in managing BMD. This measurement model can be a reference in developing a more comprehensive asset manager paradigm success measurement model in the future.

Effective public policy debt management through Debt Management Units (DMUs) is essential for regional governance and economic development. Compared with Mexico, the study focuses on actionable policy insights and the importance of DMUs in effective regional bond issuance and business environment improvement in Indonesia. The primary objective is to enhance the operational effectiveness of DMUs to facilitate successful bond issuance and improve the local business environment. The study used a qualitative research methodology to gather comprehensive insights and involved semi-structured interviews with key stakeholders, observations, and document analysis. Findings reveal that DMUs are crucial in coordinating debt strategies and managing risks; however, their effectiveness is often compromised by inadequate human resources, unclear organizational structures, and regulatory constraints. The study proposes actionable solutions, such as investing in human resource development, establishing clear Standard Operating Procedures (SOPs), and advocating for balanced regulatory reforms. These findings contribute significantly to public governance and policy by highlighting the importance of enhancing DMU performance for sustainable economic growth. The research emphasizes a multifaceted approach integrating human resource capacity, organizational clarity, and stakeholder engagement. By addressing the specific context of local government, this study provides valuable insights for policymakers and practitioners, promoting effective public finance management and fostering a favorable investment climate. The proposed recommendations aim to empower DMUs, ensuring they can fulfil their vital regional governance and economic development functions.

This article aims to explore the role of public officials (politicians and bureaucrats) as policy entrepreneurs in initiating policies that encourage partnerships and strengthening MSME supply chains. This research uses an exploratory qualitative method to understand the phenomenon in depth and formulate the problem in more detail. Data collection was conducted through semi-structured interviews with purposive sampling technique. The results showed that each public official played an important role in each strategy. Framing the problem is done with strong arguments to arouse public awareness, while network expansion is carried out through partnership forums between MSMEs and large companies, business matching, and utilization of international networks. Advocacy coalitions were built with campuses, marketplaces, SMEXcellence program initiation, buyer missions, and Inabuyer B2B2G Expo. Exemplary leadership is reflected in the full support of Kopontren Al-Ittifaq and the protection of imported goods. In an effort to increase the scale of change, policy entrepreneurs initiated the Rumah Produksi Bersama (RPB) and Minyak Makan Merah (M3) to create a sustainable supply chain climate.

Government analytical tools encompass various methodologies and strategies for evaluating, planning, and implementing public policies. This study investigates the various analytical tools local governments utilize and how these tools can be optimized to support local economic development. The literature review method was applied to identify related sources of information about the government’s analytical tools. The literature search was conducted across several indexed journal databases, including SCOPUS, WoS (Web of Science), EconPapers, and SINTA 2, to exclude journals with a negative reputation (predatory journals). This study identified 14 relevant articles using a predetermined method. The findings of this study indicate that there are obstacles, including limited human resources and bureaucratic pathology, which hinder the application of analysis tools by local governments. Comprehensive and diverse strategies are crucial for understanding the success of utilizing analytical tools in local economic development. This study is expected to attract the interest of government officials because the application of technological tools (such as applications) allows data to be extracted quickly and accurately, thereby expanding the scope of analysis. Additionally, utilizing government analytical tools can enhance transparency and accountability, providing deeper insight into the importance of high-quality data. Furthermore, future researchers can consider other analysis tools useful for local governments to visualize data as a guide for local economic development, such as the application of artificial intelligence (AI) and machine learning for predictive analytics development.

Philanthropy in Indonesia is deeply rooted in local traditions and the spirit of communal cooperation, making it a fundamental aspect of social life. The concept of citizenship in Indonesia goes beyond legal and political definitions, encompassing socio-cultural values expressed through diverse philanthropic practices. This study explores how local traditions and the dynamics between mechanical and organic solidarity shape the socio-cultural framework of philanthropy and influence civic development. The researchers surveyed 387 respondents across seven key regions: Yogyakarta, Bandung, Jakarta, Makassar, Medan, Denpasar, and Samarinda. Data collection focused on communal awareness, traditional practices, and the roles of solidarity in charitable efforts. Multiple regression analysis revealed that local traditions contribute 35% to strengthening philanthropic values. Mechanical solidarity, rooted in shared beliefs, accounts for 25%, while organic solidarity, driven by functional roles, contributes 20%. The interaction between tradition and modernity adds another 20%. These findings highlight that cultural traditions and the combination of mechanical and organic solidarity are vital foundations for building societal awareness. The research underscores the importance of stronger collaboration between government bodies and communities to incorporate these cultural elements into Indonesia's modern, citizenship-oriented philanthropic movements.

The sustainable development of business and investment in Indonesia has accelerated the country's economic and social agenda, contributing directly to economic growth and expanding employment opportunities. However, investment policies have not fully addressed the need for sustainable environmental security and health, so the presence of investment often triggers new environmental damage problems. Then, the question is how green policy plays a strategic role in preventing environmental damage in terms of investment and ease of doing business, as well as promoting green policy for green investment. The purpose of this paper is to explore and promote the role and tasks of green policies that take place in many regions in Indonesia so that they can be designed for the media to control land use change for and in the name of encouraging investment and business while still paying attention to and applying the principles of 'green investment,' namely sustainable investment development. With a case study in Banyumas Regency, through a descriptive qualitative data analysis method with a triangulation model of data analysis, the author concludes that green policy in the sustainable development paradigm in the regional and local landscape is not yet in accordance with the principles of 'green policy,' namely development policy (investment and business) that pays attention to and applies sustainable development values, in order to prevent damage to nature, the environment that will threaten the sustainability of development in other sectors. At the local government level, such as in Banyumas Regency, green policies play an important role in preventing environmental damage while also providing direct guidance to potential investors before they undertake further investment activities. Green policies have been proven to provide a comprehensive understanding to potential investors, thus providing a guarantee of investment security. For this reason, green policies should be incorporated into the agenda of ease of doing business and investment. The government as the central regulator, should be brave to promote it to accelerate the agenda of sustainable development.

This research aims to assess the level of community readiness in indigenous communities affected by the relocation to the new capital city. The concept of community readiness is an approach to evaluate how prepared a community is to address certain issues or implement changes. The research was conducted by using Delphi analysis with three experts to determine and validate the appropriate parameters and variables for assessing community readiness and its factors. The parameters and variables obtained are then used as input for the readiness analysis to derive values and their factors. Subsequently, strategies are developed using descriptive qualitative techniques based on existing conditions, best practices, and existing regulations in Indonesia. The research results yielded 28 community readiness parameters and 10 variables to determine the factors. These parameters were then tested with 200 respondents, resulting in a score of 3.06, equivalent to Level 5 or the Preparation Level, where the leaders have started planning with the support and efforts of the community.

This study analyses the complementary effects of bank financing and digital transformation on palm oil productivity in the Lampung Province. This study used secondary panel data from 15 districts and cities in Lampung from 2014 to 2022. This study applies spatial efficiency analysis in the form of slack-based measurement and data envelopment analysis to measure the amount of productivity. Meanwhile, the effect of banking financing and digital transformation on productivity uses an advanced polynomial static panel regression, generalized least squares. The results show that banking credit in the agricultural sector has a significant positive effect, and digitalization has a U-shaped characteristic (Kuznet’s U-shaped curve) that leads to a positive effect on palm oil productivity under certain conditions. Bank credit acts as a medium-term funding stimulus, so the scale of the palm oil business is relatively maintained. In line with this, it needs to be accompanied by technological capacity and support in the form of internalization, both structurally and functionally, so that the efficiency of palm oil production can be navigated properly. Therefore, the government and institutions must expand digital access across Lampung to surpass the critical threshold and improve farmers’ digital skills. At the same time, basic access, such as subsidized fertilizers and the development of agricultural platforms, is essential given the substantial future potential of digitalization. Financial institutions must also evaluate and simplify credit access with sufficient guarantees and provide interest subsidies (through interbank and local government collaboration) to accommodate potential productivity gains. In terms of regional living standards, promoting job creation across sectors could be beneficial. Meanwhile, to mitigate the adverse effects of industrialization on palm oil productivity, a synergistic partnership system between farmers and industries with fair pricing is necessary to ensure a broader supply and sustained production growth.

This study examines poverty alleviation efforts in the Sumbawa Regency through the lens of the Social Connection Model proposed by Iris Marion Young. Despite various government interventions, poverty remains a persistent challenge in this regency. The study investigates how strengthening social connections among stakeholders (government institutions, local communities, the private sector, and civil society organizations) can create more effective poverty reduction strategies. Using a qualitative approach, the study identifies structural barriers to poverty alleviation and explores how collective responsibility and joint action can address these barriers. The findings reveal that poverty in Sumbawa Regency is exacerbated by weak inter-institutional coordination, limited community participation in policy development, and insufficient attention to local contexts and cultural factors. The study demonstrates that applying the principles of the Social Connection Model, such as collective responsibility, forward-looking action, and collaborative governance, can significantly enhance poverty reduction outcomes. This research contributes to the growing literature on participatory approaches to poverty alleviation by offering practical insights for policymakers and development practitioners working in rural Indonesian contexts.