One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan

International Journal of Social Science and Human Research ISSN (print): 2644-0679, ISSN (online): 2644-0695 Volume 08 Issue 11 November 2025 DOI: 10.47191/ijsshr/v8-i11-43, Impact factor8.007 Page No: 8878-8886 IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8878 One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan Evi Agustini1, Ismail Nurdin2, Etin Indriyani3 1,2,3Institute of Home Affairs Governance ABSTRACT: One Village One Product (OVOP) is a method of developing regional potential in a particular area by utilizing local resources to produce a unique, globally competitive product that is characteristic of the region. This study aims to analyze the OVOP program as a regional development approach can revitalize the regional economies in Indonesia and Japan. This research used a qualitative descriptive methodology, with the aim of understanding complex phenomena in depth. The results of OVOP implementation in Japan and Indonesia differ, which is influenced by the way they are implemented. OVOP in Japan has been successful, while OVOP in Indonesia has not yet achieved its objectives and produced optimal results. This is because, although many aspects of OVOP can be applied in Indonesia, there are still problems with its implementation. KEYWORDS-OVOP, Regional Development, Economic Revitalization I. INTRODUCTION One Village One Product (OVOP) is a method of developing regional potential in a particular area by utilizing local resources to produce a unique, globally competitive product that is characteristic of the region. Depending on its capacity and business volume, a village can develop into a sub-district, district, or other regional unit. (Hermuningsih & Wardani, 2014). The One Village One Product (OVOP) movement was first launched in Oita, located on the island of Kyushu, Japan. In the late 1970s, OVOP was established with the aim of encouraging local residents to participate in the economy through the implementation of unique procedures in the region and their development in accordance with national and global standards (Knight, 2014). The Oita Prefectural Government, the OVOP supervisor, supports the OVOP movement with technical and marketing assistance. Local producers or actors are expected to create new products that can influence the economy and society of the village. As a result, after two decades of use, OVOP is considered successful in supporting local development in Japan (Hiroshi Murayama and Kyungmi Son, 2010). The success of OVOP in promoting local products as a tool for local economic development in Oita Prefecture, Japan, has attracted the attention of many developing countries, including Indonesia. The goal of OVOP in implementing this transfer is to reduce poverty (Hendri, 2024). The OVOP initiative has given local governments hope for effectively addressing these issues in response to rural-urban demographic changes and their link to income inequality and migration, as summarized in the following figure. Source: (Etra Rahayu, 2018) One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8879 The high poverty rate in Indonesia requires accelerated poverty alleviation efforts. One way to do this is by encouraging the empowerment of small and medium enterprises (SMEs) through the implementation of OVOP in Indonesia (Saputra, 2021). The Indonesian government has established "Indonesia Emas 2045," which means moving out of "middle-income country" status by 2038. According to this plan, the country will be built on four main pillars: resilience, prosperity, inclusion, and sustainability. These four pillars will serve as guidelines for a better future. The philosophy of "Gotong Royong," which emphasizes the importance of cooperation and collaboration to achieve the common good, is the basis of this goal (Yulivan, 2024). One of the themes in Indonesia Emas 2045 is Prosperous Economy. One of the visions in Indonesia Emas 2045 is for Indonesia to become one of the top 10 economies in the world. To that end, Indonesia must focus on strengthening its key economic sectors. The following are the key economic sectors in Indonesia. Source: (Kadin Indonesia, 2023) The image above shows that MSMEs contribute significantly to Indonesia's economy. Through Presidential Instruction No. 6 of 2007 concerning Policies for Accelerating the Development of the Real Sector and Empowering Micro, Small, and Medium Enterprises (MSMEs), the government aims to promote the effective development of IKM through the One Village One Product (OVOP) approach. Then, the Ministry of Industry launched the Small and Medium Industry Development Program (IKM) with the issuance of Minister of Industry Regulation No. 78/MIND/PER/9/2007 concerning Increasing the Effectiveness of IKM Development through One Village One Product (OVOP). In Indonesia, this effort has made OVOP a legitimate government project. With the aim of increasing the number of SME and MSME products that are able to penetrate the global market, the policy aims to explore and promote innovative and creative products based on local resources, regional specialties, high added value, environmentally friendly, and with an international image and competitiveness. In the long term, the goal is to increase the number of small and medium enterprises (SMEs) to reduce unemployment and ultimately end poverty. Ministry of Industry Regulation No. 14 of 2021 concerning the Development of Small and Medium Industries in IKM Centers is the latest regulation on the OVOP concept. This regulation demonstrates the Indonesian government's commitment to continuing to develop MSMEs using the OVOP concept, as has been done in Japan. However, after implementing the OVOP program in Indonesia for approximately 16 years, the results have not been optimal. This study aims to analyze the OVOP program as a regional development approach can revitalize the regional economies in Indonesia and Japan. II. RESEARCH METHODS This research used a qualitative descriptive methodology, with the aim of understanding complex phenomena in depth (Rifa'i, 2023). Data was collected through a literature review such as journal articles, news articles and statistical data. The data analysis technique used is the interactive data analysis model developed by Miles Huberman, in Sugiyono, which states that the steps are data collection, data reduction, data presentation and conclusion drawing / verification to analyze and interpret data in depth, allowing exploration of relationships between variables so as to obtain comprehensive understanding of the phenomenon under study. III. RESEARCH RESULTS AND DISCUSSION Historically, One Village One Product (OVOP) was proposed as a policy to address the problem of depopulation caused by young people leaving their home regions, which disrupted local industries. Historically, during Morihiko Hiramatsu's six terms as Governor of Oita (1979-2003), poverty alleviation was one of his main goals, along with regional development and potential. One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8880 Governor Hiramatsu carried out this initiative in a highly strategic and effective manner to attract public attention (Rauf et al., 2023). OVOP is considered a method of developing regional potential by utilizing local resources to produce unique, world-class products for the region. Depending on its economic capacity and business volume, a village can develop into a sub-district, district, or other regional unit. The component of togetherness is the basis for the formation of companies in OVOP. Emotional bonds within extended families reduce disputes and enhance cooperation. In other words, the OVOP approach requires a full commitment to raising community awareness of the wealth and potential of the village. This will also increase community income and boost the confidence and pride of the community and its region. Source: (Ministry of Industry, n.d.) A region will have competitiveness and potential for development if it has superior products and is supported by the government. OVOP development is also supported by small businesses. In addition, OVOP helps explore and promote innovative and creative local products based on the region's unique and distinctive resource potential, which generates high added value while maintaining environmental sustainability. The government must provide assistance in the form of market access, capital, and technical and management assistance if each region has produced products that meet competency standards. OVOP is a small and medium business model that aims to improve the welfare of the community (Saroso & Fauzi, 2013). According to policymakers, OVOP helps to bridge the gap between urban and rural areas in developing countries through community-based development. As a result, the OVOP approach has been used as an alternative path to economic development in many developing countries in Asia and other developing countries, including Africa and Latin America. Countries in Southeast Asia include Thailand, Vietnam, Korea, China, Cambodia, the Philippines, Laos, and Indonesia. (Claymone & Jaiborisudhi, 2011). The following are OVOP movements in Asia: Source: (Hoang Thanh et al., 2018) One Village One Product (OVOP) is a method of developing regional potential by utilizing local resources to produce a unique and distinctive global-class product. One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8881 Source: (JICA - Japan International Cooperation Agency, 2022) OVOP is an effort to boost the regional economy. Villages can be upgraded to subdistricts, regencies, cities, or other regional units according to their economic potential. OVOP aims to increase the value of local products to boost local community income and enhance the appeal of the local environment for residents and tourists. This is in line with the new push promoted by the Program to boost the local economy and increase added value. OVOP is a unique approach to rural community development that encourages creativity and local potential through human resource development and effective local leadership. This approach also aims to revitalize communities through the development of unique products with strong market appeal. The overall goal is to enhance and consolidate the capacity of local organizations to promote development and reduce poverty in the region (Kurokawa et al., 2010). There are three principles of OVOP, namely (Randi et al., 2023): (1) independence and creativity, (2) human resource development, and (3) thinking globally but acting locally. Although influenced by external forces, local communities, largely due to their own talents and independence, strive to create unique products from local resources for their own benefit and to capture markets outside their region. They improve their skills by making more competitive goods, increasing their income, and strengthening social relationships. The OVOP concept for rural community development has been implemented in different ways in the places where it was introduced, depending on the overall objectives and unique circumstances of each country. As a result, this concept has been adopted by many local governments in Japan and has spread throughout the world. There are three basic principles in the use of OVOP (Azizah et al., 2023), namely: 1. Local but Global, creating products that are acceptable worldwide but show pride in local culture; 2. Independence and Creativity, creating OVOP by utilizing regional potential independently. Based on this principle, the provincial government does not provide subsidies to the regions but assists in product development and distribution through the establishment of training and guidance institutions; and 3. Human resource development, creating products that are acceptable worldwide but show local cultural pride. Regional training schools were established based on these principles to educate prospective regional leaders who are globally minded, ready to face challenges, and able to develop OVOP according to their areas of expertise. In addition, there are several keys to successful OVOP implementation that must be considered: (1) raising public awareness of OVOP, (2) identifying the potential that exists in each region, (3) continuous and long-term trial-and-error efforts, (4) ensuring that products have the highest added value, (5) developing markets and distribution channels, and (6) developing community talent (Miagina et al., 2021). One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8882 The One Village One Product (OVOP) concept is a continuation of the regional core industry competency development program. OVOP is a way to encourage regional development in one area by utilizing local resources and culture to produce unique, world-class products that are characteristic of the region. Using this OVOP approach, the central government, local governments, the private sector, and local communities work together to develop SMEs and MSMEs. s in product quality and appearance, as well as national and international promotion and marketing, are achieved by utilizing local knowledge, labor, and other resources that are characteristic of the region (Ratmono et al., 2016). OVOP in Japan Governor Morihiko Hiramatsu, who was elected in 1979, became a leader in promoting and selling Oita products throughout the country, especially in Tokyo. Hiramatsu worked hard to publicize OVOP products with the slogan, "Let's sell the authentic taste of Oita products." (Miagina et al., 2021). OVOP emerged from the desire of rural women and youth to improve their homes as a way to prevent population decline and increase per capita income. OVOP was intended as the main or only socio-economic development strategy in Oita Prefecture, and was considered a substitute for attracting industry to Oita. OVOP focuses specifically on improving the economic and social welfare of rural communities. Since Japan's natural resources are relatively low, the focus is on the economical use of resources and environmental conservation. Added value is focused on promoting the uniqueness and diversity of products to overcome market circulation problems and sharpen competition. The OVOP Promotion Council is part of the Oita Prefectural Government. The Oita International Exchange Promotion Committee is now responsible for coordinating OVOP. OVOP activities are not funded by the prefectural government, but by donations from the private sector, such as Tokiwa Department Store. OVOP in Oita relies heavily on cooperation between public and private businesses. It targets domestic, international, and local markets. In Japan, the success of OVOP has empowered women by giving them financial independence to help their families' income. Women farmers in Oita have become pioneers in women's empowerment, and there are approximately 339 women's groups that are active and continue to run their businesses (Miagina et al., 2021). The following are the successes and achievements of OVOP in Japan. Table 1 OVOP Achievements in Japan Measurement Achievements Per capita income Per capita income rose sharply from 1.3 million yen (US$11,200) in 1979 to 2.65 million yen (US$22,800) in 2003, ranking 25th in Japan and highest on the island of Kyushu. Total sales of agricultural products increased agricultural sales to 2.46 million yen (US$21,200) in 2003 from 1.18 million yen (US$10,200) in 1979. Fried Mushroom Sales (Oita OVOP Product) Production of 1,410 tons in 2004 and sales of 56 billion yen, achieving a 34% share of the Japanese market. Kabosu Lime (Oita OVOP Product) Production of 4,550 tons in 2003 and sales of 1.014 billion yen, reaching 100% of the Japanese market share. Barley Distillate or Shoucho (Oita OVOP Product) Production began in 1975 with 765 kiloliters, increasing to 119,060 kiloliters in 2003 with a market share of 30.7%. Mandarin oranges (Oita OVOP product) In 2003, production volume reached 5,180 tons, making it the fourth largest producer in Japan. Tourism in Yufuin City, Oita Prefecture In 2004, the number of visitors increased from 1.9 million in 1979 to 3.88 million, with a population of only 11,611 people. Oyama City, Oita Prefecture With 1.9 million tourists, product sales reached an average of 1.6 billion yen per year. Number of OVOP Products In 1981, the number of product items increased from 143 to 336 items. Source: (Kurokawa et al., 2010) OVOP in Indonesia OVOP is relatively new in Indonesia. It is considered a program for developing the potential of leading regional commodities to enter the domestic and export markets. The government has actually been exploring the potential of leading regional commodities for several years. The OVOP initiative is implemented by the central government from the bottom up, according to One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8883 Presidential Instruction No. 6/2007. Advertising OVOP products is expected to increase regional income, employment, tourism, and human resource development. The central government established Presidential Regulation No. 78/M-IND/PER/9/2007 concerning the Policy for the Improvement of Effective SME Development through the OVOP Approach to provide a firm legal basis for the OVOP movement to be in line with national industrial policy. In addition, this regulation is the legal basis for the implementation of this policy (Hermuningsih & Wardani, 2014). In addition, to improve the competitiveness of SMEs, the Minister of Industry established the OVOP program as one of his strategic priorities from 2010 to 2014. This was achieved through the establishment of OVOP pilot projects and the division of SME products into three categories: food, clothing, and handicrafts. Furthermore, a machine reorganization program was launched for SMEs, offering discounts of between 25 and 30 percent to SME producers who purchased new machines. As part of poverty alleviation efforts, the government provided soft loans in the form of People's Business Credit (KUR) for business programs for SMEs and cooperatives that were not yet eligible for credit. OVOP became cross-sectoral when the Ministry of Cooperatives and SMEs included the OVOP program in its 2010-2014 key performance indicators, targeting cooperatives as OVOP communities in 100 cities and districts (Widiyanti, 2018). During the OVOP journey, the Coordinating Minister for Economic Affairs of the Republic of Indonesia decided to examine OVOP under the guidance of the Ministry of Industry. The Regional Leading Product Program (PUD) proposed and supported by the Ministry of Home Affairs must support OVOP findings. Based on Indonesian local government letter No. 500/1404/5/Bangda dated June 30, 2009, concerning Guidelines for Cluster-Based PUD Development, the Minister of Home Affairs issued Regulation No. 9/2014. Starting in 2013, the Ministry of Industry has awarded the OVOP Award to SMEs that meet the criteria and requirements as OVOP SMEs in five (5) commodity groups: food and beverages, woven fabrics, batik fabrics, woven goods, and pottery. This award is given every two years (Ministry of Industry, n.d.). Ministry of Industry Regulation No. 14 of 2021 concerning the Development of Small and Medium Industries in IKM Centers has been issued to improve the implementation of the OVOP Program. The aim of this program is to increase the motivation, creativity, and innovation of local communities to produce products that are ecologically valuable. The following is the framework for implementing OVOP in Indonesia (Ratmono et al., 2016): Source: (Hermuningsih & Wardani, 2014) The following are some OVOP products in Indonesia based on their commodities. Source: (Ministry of Industry, n.d.) One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8884 Source: (Ministry of Industry, n.d.) Source: (Ministry of Industry, n.d.) Source: (Ministry of Industry, n.d.) The following is a comparison between OVOP Indonesia and Japan in terms of their principles and objectives. One Village One Product (OVOP) Program as a Regional Development Approach in Regional Economic Revitalization in Indonesia and Japan IJSSHR, Volume 08 Issue 11 November 2025 www.ijsshr.in Page 8885 Table 2: Comparison of OVOP Indonesia and Japan Source: (Widiyanti, 2018) The table above shows that, although the movement was first adopted in Japan, its implementation in Indonesia is quite different from how it first began. Both OVOPs are located in rural areas to improve the rural economy and have the same goal: to reduce income disparities between villages and cities through the improvement of local products. Oita's experience in establishing a wholesale distribution company shows that government participation and involvement are only to foster community awareness of their hometowns. The subjects are individuals or communities. On the other hand, the government plays a very important role in driving the economy in developing countries such as Indonesia. The government is the subject because there is no community initiative. The government works hard to encourage the community to participate in economic growth. OVOP is a self-help movement, so government intervention is necessary in countries that do not have community programs. The important thing is that there is an adequate balance between topdown government involvement and bottom-up local initiatives (Widiyanti, 2018). A study (Widiyanti, 2018) found that differences in the implementation of OVOP in Indonesia and Japan were due to context. Several factors influencing the implementation of OVOP in Indonesia included a lack of community initiative, untrained producers, a lack of funding for rural areas, and a lack of political will to implement it. Project targets and market reluctance towards SME products are some of the things that make a bottom-up approach difficult in Indonesia. Although Oita does not have specific policies or subsidies, its OVOP mechanism has been successful. As one of the driving forces behind starting and maintaining the OVOP movement, Oita's strong and respected leader, Hiramatsu, revealed this secret. Large company owners were forced to create a cooperative fund to establish Oita OVOP, a company with fully private capital. This company is not influenced by others in running its business and promoting Oita's local products. This company cannot achieve the same success as Oita in other prefectures and countries that have adopted OVOP, including Indonesia, because of the actions of this company. CONCLUSIONS The results of OVOP implementation in Japan and Indonesia differ, which is influenced by the way they are implemented. OVOP in Japan has been successful, while OVOP in Indonesia has not yet achieved its objectives and produced optimal results. This is because, although many aspects of OVOP can be applied in Indonesia, there are still problems with its implementation. REFERENCES 1) Azizah, L. N., Nawawi, J., & Rusli, A. M. (2023). 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(2024). ECONOMIC DEFENSE ENTREPRENEURSHIP TOWARDS INDONESIA EMAS 2045. There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.