While much has been written and said about the Indonesian platform economy active in and around Jakarta and the other major urban centers, most research ignores rural areas likely under the assumption that there is no platform economy to speak off beyond the city limits. Our research started off as an investigation of why platforms don’t work in rural areas but our initial explorations showed that, in fact, there is a nascent but growing rural ecosystem nurtured by the viral growth of the major e-commerce platforms seeping beyond the urban centers as well as the emergence of platforms who are specialized in the agricultural and fisheries sectors based in rural areas.
The observation that rural Indonesians are increasingly participating in the digital economy caused us to refocus our work on understanding this emerging rural platform ecosystem. This study seeks to better understand the growth of digital platforms in rural areas of Indonesia, beyond urban centers. The goal is to provide insights that can guide interventions to promote the development of and inclusiveness of rural, platform-based sectors, thereby enhancing social status, economic outcomes and financial inclusion in the rural populations that they increasingly serve.
Our study focuses on four key sectors in the rural Indonesian economy where digital platforms are most prevalent in reaching outside of major city centers: agriculture, fisheries, e-commerce, and social commerce. We explore the dynamics of for-profit platform business models that are showing potential in supporting rural livelihoods across these sectors. We also seek to shed light on the experiences, characteristics, growth potential, utilization, and barriers faced by the platform sellers in towns and rural areas. Additionally, we examine the intersection between platform-based livelihoods and financial inclusion, and the impact that platform engagement can have on the uptake and usage of digital financial services, particularly among rural women. Finally, we discuss promising intervention pathways that policymakers, providers and donors could target to enhance inclusion in Indonesia’s rural platform ecosystem, with a focus on improving gender equality.
Full report could be downloaded here:
Beyond the city limits: Platform livelihood in rural Indonesia
