Best Ideas 2020 features all the nominated entries submitted under ‘Submit your Idea’ category. All the entries consist of innovative solutions or propositions for an enterprise that champions the Sustainable Development Goals. They can be on the conceptual, planning, or start-up stage.
VIGROW: STRATEGY FOR DEVELOPING RURAL CREATIVE INDUSTRY THROUGH E-COMMERCE IN INDONESIA
Explain your idea in details:
I'm proposes a solution called Village Grow (Vigrow), which entails developing rural industrial clusters and connecting them with e-commerce marketplaces. While analyzing the problem and elaborating this solution, this innovation answers the following problems: how the government could develop the rural economy through VIGROW, how e-commerce marketing could be implemented with VIGROW, and what the benefits of this program for stakeholders are. This innovation uses literature review with secondary data as the methodology. Data and research results help the author analyze the problem, provide benchmarks to develop the recommendation. To build the rural economy, the government should harness local potentials to develop the industrial sector as it could mitigate diminishing returns to labour in the agriculture sector. However, producers in Indonesian rural industries are hindered by several issues, including those related to marketing and financing. These issues include limited market scope, limited information on market price and trend, and limited access to business loans. By connecting rural producers with e-commerce, VIGROW could help address these issues. First, using e-commerce allow rural producers to easily access markets beyond the local area. Second, e-commerce marketplaces expose rural producers to various market information. Third, rural producers selling on e-commerce marketplaces leave track records that could be used for credit assessment for when they apply for a loan. and the last, the formation of VIGROW volunteers who will provide vocational training for villagers who want to join VIGROW but do not yet have a product that is traded for the public.
Expected impact of your idea on sustainable development
There are various benefits to gain from the Village Grow program for the stakeholders involved. Rural producers will be facilitated to sell on e-commerce, giving them wider market access, more market information, and easier access to loans. Village Grow will also incentive the development of rural industrial clusters, which create external economies of scale and reduce transaction costs for the rural producers in them. For e-commerce partners as well as logistics and internet companies, Village Grow will help them tap into rural markets for expansion. In conclusion, Village Grow will boost employment, alleviate poverty, and strengthen the country industrial base by connecting potential villages with e-commerce, and also Village Grow giving entrepreneurship skills training for village communities who wants or will start a business.
Plans for implementation and sustainability
The implementation of the Vigrow program will have to involve multiple stakeholders such as e-commerce companies, logistics and internet services providers, and village cooperatives. In the initial phase, the government will have to identify potential villages where rural industrial clusters could be developed, with the help of the OVOP (One Village One Product) database. Partnership will then be conducted with e-commerce companies, which will provide facilitation and promotion services for the rural producers selling on their platform. To facilitate e-commerce activities by rural producers, the author proposes the Partner Vigrow system, which leverages a network of agents recruited by partnering e-commerce companies from the local community to not only help buyers but also rural sellers. Meanwhile, the government will have to develop rural internet and logistics infrastructure to support e-commerce activities. Village cooperatives could also be involved to provide supporting functions, such as e-commerce marketing services and bulk-buying for rural industrial clusters. In some villages where the construction of basic infrastructure has been sufficient, village funds could be channeled to finance various parts of the Vigrow program.
Hello everyone, let me introduce myself. my name is Tri Wahyu, I am a 6th semester economics student at Muhammadiyah University of Surakarta, Indonesia. I am 20 years old village girl who likes learning related to technological innovation, economics and business, also agriculture. I have a dream of being part of the ministry rural development and underdeveloped transmigration. Therefore, since taking my undergraduate education i often participate in world and national level innovation competitions, build a startup in the field of research, i am also developing a commodity business. besides that, i also fill my free time helping my parents to farm. so that i will never give up on achieving my dream by continuing to learn new things and become an agent of change in my area.