MSMEs in Jakarta through Spatial Planning and Stakeholder Collaboration for Sustainability

Abstract

MSMEs are the backbone of Jakarta's economy, driving employment, innovation, and economic growth. Despite their vital role, MSMEs face significant barriers, including limited access to land, misaligned spatial planning and business licensing regulations, and insufficient support for green and circular economy practices. Jakarta’s spatial planning framework, outlined in Regional Regulation No. 7 of 2024 (RTRW) and Governor Regulation No. 31 of 2022 (RDTR), establishes zoning regulations and business licensing requirements that significantly affect MSME operations. However, inconsistencies between these policies create barriers for MSMEs in securing permits and strategic business locations. While MSMEs are essential to Jakarta’s urban resilience, research on how spatial planning policies affect their development and sustainability remains scarce in Indonesia. This study addresses this gap by employing Actor-Network Theory (ANT) using UCINET to map stakeholder interactions and power dynamics. The analysis identified 27 key actors involved in MSME development, including government agencies, private sector entities, and civil society organizations. Degree Centrality analysis highlighted the MSME Agency and the Governor as the most connected actors, reflecting their central roles in policy formulation and business coordination. Betweenness Centrality revealed the MSME Agency's position as a key intermediary. A Network Centralization Index of 17.79% indicates a moderately decentralized network, where influence spreads among multiple actors rather than concentrating in a few central players. The findings demonstrate that MSME governance in Jakarta remains state-driven, with government institutions holding dominant positions in the network. However, limited engagement from informal businesses, universities, and private-sector actors weakens policy implementation and reduces MSME competitiveness.