Digitalisation and Rural Livelihood Transformation: Evidence from Indonesia

Abstract

This article examines the extent to which digitalisation transforms rural livelihood in the context of the Global South. We conducted a case study in two villages in Indonesia that represent different digital technologies and rural economies. We found that digitalisation, to a certain degree, encourages changes in rural livelihoods, as it provides opportunities for rural residents to improve their capabilities. However, digital technology is rather used predominantly for social purposes and has thus not yet triggered a major structural transformation in the rural areas. Nevertheless, the more complex nature of digital technology adopted by the community tends to trigger more significant changes in rural livelihoods. It is thus to be expected that with more intensive future use and complex types of digital technologies, digitalisation will significantly influence rural transformation in the Global South.