Journal of Regional Economic Studies

Impact Digital Transformation towards Growth Regional Economics : A Study The case of MSMEs in Indonesia

Vika Fransisca — 2025-09-08

This study aims to analyze the influence of digital transformation on regional economic growth through a case study of Micro, Small, and Medium Enterprises (MSMEs) in five provinces in Indonesia. The quantitative approach was employed using multiple linear regression and ANOVA to measure the relationship between digital adoption levels—including the use of e-commerce, social media, and digital payment systems—and MSME performance and their contribution to regional economic growth. The research was conducted across five provinces (DKI Jakarta, West Java, Central Java, South Sulawesi, and East Nusa Tenggara) with a total sample of 300 MSMEs selected through stratified random sampling. Data collection involved structured questionnaires, semi-structured interviews, and secondary data from government agencies and international institutions. The results show that digital transformation has a significant impact on improving turnover, market reach, and operational efficiency of MSMEs. Provinces with high levels of digital adoption such as DKI Jakarta and West Java show greater MSME contributions to economic growth compared to regions with low digitalization levels such as East Nusa Tenggara. These findings support endogenous growth theory which emphasizes the importance of innovation and technology in driving economic productivity. The regression analysis revealed that 69% of variance in MSME performance can be explained by digitalization variables, with e-commerce use showing the highest coefficient (β=0.312, p<0.001). This research recommends the need for region-based policies that encourage digital literacy, infrastructure provision, and cross-sector collaboration to accelerate equitable distribution of digital transformation benefits. Digital transformation is proven not only to strengthen MSME competitiveness but also plays a role as the main driver of sustainable regional economic development, particularly in addressing regional disparities and promoting inclusive growth.

Dynamics Trading International and Its Implications to Inequality Regional Economy in Indonesia

Dina Nurul Fathiya — 2025-09-08

International trade serves as a primary driver of national economic growth, yet its impact on regional inequality remains a subject of ongoing debate. This research aims to analyze the relationship between international trade and regional economic inequality in Indonesia during 2015–2023. The study employs a quantitative approach using panel data regression analysis across 30 provinces, complemented by inequality indices (Williamson Index and Theil Index) to assess spatial distribution of trade benefits. Results demonstrate that exports positively and significantly influence regional economic growth, but create asymmetrical impacts on inequality. Provinces with superior logistics infrastructure, export industry linkages, and global value chain (GVC) integration capture disproportionately larger trade benefits compared to lagging regions. Findings reveal that interregional inequality actually increased during the post-pandemic recovery period, reinforcing arguments that trade liberalization must be accompanied by equity-enhancing policies. Therefore, development planning and trade policies should adopt more inclusive approaches, focusing on regions not yet integrated into global trade networks. This research provides empirical contributions for formulating equitable regional trade and development policies that leverage local potential.

The Role of Green Economy in Promoting Sustainable Development in Southeast Asia

Feri Hardiyanto — 2025-09-08

This study aims to analyze the role of green economy in promoting sustainable development in Southeast Asia, focusing on five countries: Indonesia, Malaysia, Thailand, Vietnam, and the Philippines. The research employs a descriptive-comparative method combining quantitative and qualitative analysis based on secondary data from international institutions and official government reports. Results indicate that green economy contribution to Gross Domestic Product (GDP) is gradually increasing, particularly in renewable energy, green industry, and sustainable agriculture sectors. Countries with more progressive green policies such as Malaysia and Thailand demonstrate more significant results, both in terms of economic growth and carbon emission reduction. However, disparities between countries remain substantial, especially regarding institutional readiness, fiscal support, and technological capacity. This study also highlights the importance of regional cooperation through policy integration and harmonization of green economy standards within ASEAN. These findings reinforce the urgency of green economic transformation as the main strategy for building a resilient, equitable, and sustainable future in Southeast Asia.

Strengthening Strategy Economy Local through Tourist Based Community in the New Normal Era

Adhi Mustofa — 2025-09-08

The COVID-19 pandemic has significantly impacted the tourism sector, especially in small-scale destinations like community-based tourism villages. In the new normal era, community-based tourism (CBT) has become an alternative strategy to revitalize the tourism sector while strengthening local economies. This research aims to analyze the role and strengthening strategies of local economies through CBT development in five active Indonesian tourism villages during the post-pandemic recovery period. The research method used is a mixed methods approach, combining qualitative data from observation and in-depth interviews, as well as quantitative data through questionnaire distribution to local tourism actors. Research results show that community institutional strengthening, local economic diversification, and tourism promotion digitalization are key strategies in supporting village community economic resilience. Additionally, significant income improvement was found among CBT actors after the pandemic, with an average increase of 50% in 2023 compared to 2020. Supporting factors include multi-stakeholder collaboration, active citizen participation, and digital adaptation, while main challenges include capital access and service standards. This research concludes that CBT has great potential as a resilient, inclusive, and sustainable local community-based economic development model amidst post-pandemic dynamics.

Analysis Relatedness Infrastructure Transportation and Growth Regional Economics : A Post-Pandemic Perspective for Indonesia

Diana Magfiroh — 2025-09-08

Infrastructure development in transportation holds an important role in supporting regional economic growth, especially in developing countries like Indonesia which faces geographical challenges and regional disparities. Post-COVID-19 pandemic, increased government investment in the transportation sector has been directed as a national economic recovery strategy. However, there is not yet sufficient evidence whether infrastructure improvements impact regional economic growth evenly.

This research aims to analyze the connection between transportation infrastructure investment and regional economic growth in Indonesia post-pandemic, with focus on spatial distribution and potential interprovincial disparity. The methodology employed a quantitative approach using panel data regression analysis and spatial analysis techniques. Data were collected from 26 provinces during the 2019-2023 period through secondary sources including BPS, Ministry of PUPR, and Bank Indonesia. Panel data regression with fixed-effect model was applied, complemented by Hausman tests for model specification and Geographic Information System (GIS) for spatial mapping.The results of the analysis show that transportation infrastructure investment has a positive and significant influence on regional economic growth, with coefficients indicating GRDP increases alongside transportation investment allocation increases. However, the impact is not distributed evenly, as areas with high economic agglomeration like Java and Sumatra tend to receive greater benefits compared to regions such as Papua or Nusa Tenggara. This study contributes novel insights by providing post-pandemic evidence of spatially differentiated infrastructure impacts and recommending affirmative planning approaches for disadvantaged provinces to achieve more equitable development outcomes. The findings confirm the importance of spatial-based transportation development planning and local potential assessment so that infrastructure can become an instrument of equity and sustainable economic growth.