Inclusive Development through Smart Environmental Strategies and Digital Innovation: Empowering Informal Businesses in Semarang, Indonesia

¹ Department of Government Studies, Faculty of Social Science, Universitas Muhammadiyah Yogyakarta, Indonesia
² Department of Political Science and Government, Faculty of Business Economics and Social Science, Universitas 17 Agustus 1945, Jakarta, Indonesia
³ Department of Political Science, Faculty of Social Science, National Cheng Kung University, Tainan, Taiwan

^* Corresponding author: helen.dian@umy.ac.id

Abstract

This study explores the potential of smart environmental strategies to foster a sustainable and inclusive in Semarang, Indonesia. Drawing on contingency theory, the research investigates how digital tools and environmental business can be adapted to the specific needs and challenges faced by informal businesses within the city’s economic landscape. A SWOT analysis framework is employed to identify the internal Strengths and Weaknesses of Semarang’s business ecosystem, alongside the external Opportunities and Threats presented by the digital and environmental landscape. By aligning these factors with the Sustainable Development Goals (SDGs), the research proposes a framework for leveraging smart environmental strategies. The findings contribute to knowledge on fostering inclusivity and sustainability in smart cities by bridging the gap between formal and informal sectors through the strategic use of technology and environmental practices. MSME owners in Semarang demonstrate strong passion and tenacity in maintaining their businesses. However, limitations in resources and participation in government programs hinder their full potential.