Indonesian Political, Business & Finance News

BKKBN urges regional governments to develop "Return to the Village" for economic equality

| Source: ANTARA_ID Translated from Indonesian | Social Policy
BKKBN urges regional governments to develop "Return to the Village" for economic equality
Image: ANTARA_ID

The Ministry of Population and Family Planning (Kemendukbangga)/BKKBN is urging regional governments to develop programmes such as “Return to the Village” to achieve economic equality and advance village development. Deputy for Population Control at Kemendukbangga/BKKBN, Bonivasius Prasetya Ichtiarto, stated that regional governments can develop village economic zones based on local potentials, such as precision agriculture, integrated fisheries, ecotourism, and the creative economy. “Programmes like return migration or ‘Return to the Village’ can be implemented by providing business capital incentives for those returning home, thereby encouraging them to settle and build local enterprises,” he said when contacted in Jakarta on Monday. He also highlighted the importance of regional governments taking the initiative to offer fiscal incentives and licensing facilitations for investors who create jobs in villages, as this will strengthen the local economic base while integrating villages into the national industrial supply chain. “In this way, the younger generation in villages will not feel left behind in terms of competencies. Reforming the structure of informal employment is also urgent. Transforming MSMEs into formal businesses through digitalisation, access to financing, and management training will strengthen village competitiveness,” Bonivasius stated. He added that social protection for informal workers, including health and employment insurance, must be expanded. The Red White Village Cooperative (KDMP) can serve as a people’s economic institution that absorbs local labour more sustainably. According to him, a larger reverse flow compared to the homecoming flow serves as an alarm for population policies. The demographic bonus will only be optimal if villages become new growth centres, not merely sources of labour. Through policies oriented towards equality, returnees will no longer need to bring relatives to the city. “On the contrary, they can return with opportunities to build the local economy. This is the path to ensure the demographic bonus does not get stuck on city roads but grows fertile in the birthplace,” Bonivasius said.

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