Economic Transformation in Village and Rural Areas

Abstract

In order to realizing the vision of 'Indonesia Emas 2045' (Golden Indonesia 2045), Indonesia need to carry out a total transformation, such as economic transformation. Economic transformation is the key to long-term  development aimed at improving the economic system of the country and regions, so that Indonesia can escape the low-income trap. The economic transformation in Indonesia is driven by changes in population structure, technological advancements, climate change, and shifts in geopolitics and geoeconomic. To achieve the economic transformation in villages, it is necessary to enhance the capacity of human resources in village communities, strengthen village economic institutions such as BUM Desa (Village-Owned Enterprises), develop superior products both upstream and downstream, and utilize Information and Communication Technology (ICT) and Artificial Intelligence (AI) in villages. Through the economic transformation in village, it can improve the village economy, create social prosperity, empower the community, reduce poverty rates, create job opportunities, and decrease unemployment in the village.