The Role of MSMEs in Improving the Local Economy in Remote Areas: A Case Study of Eastern Indonesia

Abstract

This study aims to analyze the role of MSMEs in supporting the local economy in remote areas of Eastern Indonesia, focusing on the factors that support and hinder the development of MSMEs. The method of this study uses a qualitative to analyze the role of MSMEs in improving the local economy in remote areas of Eastern Indonesia. A descriptive qualitative approach is used to collect data through in-depth interviews and direct observation in the field. The results of the study show that MSMEs in remote areas play an important role in creating jobs, increasing community income, and preserving local cultural heritage. However, MSMEs are faced with various obstacles, including limited access to funding, low digital literacy, and lack of supporting infrastructure. These findings emphasize the importance of more inclusive policy support from the government, easy access to financing, and digital literacy training for MSME actors. With this support, MSMEs in remote areas can be more optimal in improving the local economy and contributing to community welfare in a sustainable manner. This study shows that MSMEs play a key role in improving the local economy in remote areas of Eastern Indonesia. It contributes MSMEs through policies and resources can help boost economic growth and community well-being.