CROSS-COUNTRY COLLABORATION DRIVES DIGITAL TRANSFORMATION OF INDONESIAN DIASPORA UMKM IN PENANG

Abstract

This study explores a cross-border community engagement program focused on accelerating the digital transformation of Indonesian diaspora Micro, Small, and Medium Enterprises (MSMEs) in Penang, Malaysia. Conducted collaboratively by Universitas Mercu Buana and Universiti Sains Malaysia, this initiative addresses the limited digital capacity among diaspora entrepreneurs through strategic training in financial technology (fintech), digital literacy, marketing, and cybersecurity. Utilizing participatory methods grounded in andragogy and community-based participatory research (CBPR), over 30 MSME actors received three days of structured, hands-on workshops tailored to their business needs. The program yielded notable behavioral shifts, with more than 85% of participants adopting digital tools for business operations. Additionally, the initiative formalized transnational cooperation through the signing of a memorandum of understanding (MoU) and the formation of the Ngeo Digital UMKM Task Force Permai, ensuring long-term sustainability. This paper contributes to the literature on diaspora development, higher education engagement, and digital inclusion by presenting a scalable and replicable model for inclusive economic empowerment. Empirical findings are situated within the theoretical frameworks of the triple helix innovation model and grassroots digital diplomacy, offering significant implications for policy, academia, and international development.