Opportunities for Change: Rural Innovation Strategies in Contemporary Indonesia

Abstract

Rural development and poverty reduction have been one of the main development goals planned by various Indonesian governments. After the fall of the Suharto government, decentralisation was introduced to overcome imbalances in economic development between Java and the outer islands. However, the rural poverty rate and underdevelopment in outer islands of Indonesia still remain an issue which requires scholarly and policy enquiry. This paper draws on my research which I have conducted on the theme of equitable development in Indonesia. I have examined the roles of regional government initiatives, community resource management, Islamic philanthropic organisations, Islamic businesses and microfinance, (social) entrepreneurship, and gender roles. These studies are based on multiple case studies over nearly two decades. I will highlight the major challenges facing contemporary Indonesia and also key strategies which are emerging as sustainable and innovative ways to foster rural innovations.