Today : Feb 27, 2025
Economy
27 February 2025

Indonesia Unveils Plans For Thousands Of Export Villages

New initiative aims to boost local economies and reach ambitious growth targets.

Indonesia is embarking on a bold initiative to create thousands of export villages, aimed at enhancing the nation's economy through the optimized use of local resources. At a recent event held on February 27, 2025, Minister of Village and Underdeveloped Regions, Yandri Susanto, highlighted the potential of rural areas across the country and emphasized the importance of developing these capabilities for export purposes.

Minister Yandri Susanto confidently stated, "Kami akan menciptakan ribuan desa ekspor," which translates to, "We will create thousands of export villages." This initiative is poised to tap the untapped potential of Indonesian villages, ensuring local resources do not go to waste and contribute significantly to the national economy.

A remarkable example mentioned by Yandri is desa Ngoran located in Blitar, East Java. This village has developed the ability to process cattle hides to create Kendang Jimbe, which is then exported to China. The export activities carried out by desa Ngoran alone have amassed impressive export revenues, with figures reaching around Rp17.5 billion annually.

To transform these insights and examples from potential to reality, Yandri stressed the need for collaboration with various governmental departments, particularly the Ministry of Trade (Kemendag). This partnership aims to strengthen the foundation for thousands of export-centric villages being established.

The Minister of Trade, Budi Santoso, underscored this collaborative effort during the signing of the Memorandum of Understanding (MoU) on February 27, 2025, with the Ministry of Village and Underdeveloped Regions. According to Budi, "Upaya ini merupakan langkah strategis dalam memperkuat sinergi antara Kemendag dan Kemendes PDT," meaning, "This effort is a strategic step to strengthen synergy between the Ministry of Trade and the Ministry of Village and Underdeveloped Regions.”

This MoU is fundamental as it stipulates the cooperation framework, focusing on areas like domestic supply chain enhancement, development of potential commodities, and strengthening human resources to facilitate exports. The agreement has been set to last for five years, indicating long-term commitment from both ministries.

To boost exports, Budi emphasized the importance of enhancing the entrepreneurial ecosystem within villages, particularly through the development of village-owned enterprises (BUMDes) and support for micro, small, and medium-sized enterprises (UMKM). He mentioned, "Desa memiliki kekayaan alam dan produk unggulan yang dapat bersaing di pasar global," which means, "Villages have natural wealth and superior products capable of competing on the global market.”

With the focus on high-quality agricultural products, handicrafts, and traditional food processed items, Indonesia seeks to position its villages as significant players in the global market. This collaborative approach aims not just to create export opportunities but to strengthen local economies and create pride among rural communities.

This plan aligns well with the economic targets set by President Prabowo Subianto, who anticipates the initiatives may contribute to achieving a targeted economic growth of eight percent. By tapping the vast potential of villages through strategic marketing and support systems, officials believe these efforts could significantly boost the nation’s economic stature.

Through these initiatives, the Indonesian government eyes not only the immediate economic benefits but also the long-term sustainability and growth of community-based economies across the archipelago. The developments at desa Ngoran serve as proof of concept for what is possible when local resources are utilized appropriately and the communities are engaged actively.

Moving forward, as the government establishes more export villages, the collaboration of various ministries and local stakeholders will be pivotal. They aim to avoid letting these resources languish unexploited, fostering environments where innovation and creativity can thrive.

Overall, Indonesia's push for numerous export villages marks a significant stride toward enhancing the country’s economic framework, offering opportunities and uplifting communities across its vast rural landscapes. Through collaboration, strategic initiatives, and shared resources, the vision of empowering Indonesia's export capacity is steadily becoming real.