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Kayac and Japan Government Advance Digital Regional Revitalization With Furusato Resident System
Japan is turning to digital technology to tackle one of its most difficult long-term challenges: how to keep people connected with communities facing population decline. Kayac Inc. has been selected by Japan’s Ministry of Internal Affairs and Communications (MIC) to support model municipalities participating in the new Furusato Resident Registration System, including administrative support and app testing. The initiative could become an important step in Japan’s regional digital transformation strategy.
The Furusato Resident Registration System is designed to create stronger and more measurable relationships between people and regions where they do not normally live. Instead of limiting regional participation to permanent residents, the system aims to allow people to register as “furusato residents” of another community and engage with local activities through a digital platform.
The government is currently running a model project involving seven prefectures and 21 municipalities, with a full-scale launch planned during fiscal 2026. An application is also expected to be released toward the end of the fiscal year.
Kayac Takes on a Key Role in the Digital Program
Kayac’s involvement goes beyond simply developing an application. The company will provide ongoing support to the participating municipalities and handle administrative work connected with the model project, while also conducting app demonstrations and testing.
This role is significant because Japan’s municipalities have different levels of digital readiness. A platform may work technically, but its success depends on whether local governments can actually operate it, communicate with users and turn digital engagement into participation in the real world.
The model project therefore provides an opportunity to identify practical problems before the system is rolled out nationally.
Why Japan Needs a New Digital Regional Model
Japan’s population decline is putting pressure on communities across the country. Many regional governments are struggling with shortages of workers, declining numbers of residents and difficulties maintaining local services.
Previous programs, including hometown tax initiatives and regional revitalization schemes, have helped people maintain connections with areas outside their place of residence. However, the government says the broader concept of “related population” has been difficult to define and measure consistently. That makes it harder for municipalities to establish clear targets and reproduce successful approaches.
The Furusato Resident Registration System attempts to address this gap by giving those relationships a more concrete digital framework.
A resident could discover a local event, volunteer opportunity or community project through the application, register their interest and eventually participate in person. For municipalities, that creates a clearer path from online engagement to real-world involvement.
Potential Impact on Japan’s Technology Industry
The project could create new demand for GovTech, civic technology and regional DX solutions in Japan.
As local governments become more dependent on digital platforms, technology providers will have opportunities to develop services covering mobile applications, cloud infrastructure, cybersecurity, identity management, analytics and digital communication.
The project could also encourage technology companies to design products specifically for smaller municipalities. These governments often have limited IT budgets and staff, making simple, scalable and easy-to-manage platforms particularly valuable.
The broader lesson is that Japan’s digital transformation market is expanding beyond traditional enterprise systems. Government agencies and local communities are becoming important customers for technology companies looking to develop long-term digital services.
New Opportunities for Regional Businesses
The effects could also reach businesses operating outside the technology sector
Restaurants, retailers, tourism operators, accommodation providers and local service companies could benefit if the Furusato Resident Registration System encourages people to visit and take part in regional communities.
A person does not necessarily need to move to be useful to a region. Someone who goes to events often buys local products helps out as a volunteer or spends weekends in a community can help the local economy.
This gives businesses a chance to connect with customers through community involvement of just traditional ads.
Data Could Become a Valuable Regional Asset
Another big result could be that data is used more in planning for regions.
If done properly digital engagement data could help towns see which activities bring people in what kinds of projects people care about and where more help might be needed. That information could make it better for governments to spend money and for local businesses to plan their work.
Data privacy and security will be very important. A system across the country that links people with towns must keep details safe and have clear rules, about how user data is gathered, stored and used.
A New Direction for Japan’s Regional DX
Kayac’s appointment demonstrates how Japan is increasingly combining government policy with private-sector digital expertise to address regional challenges. The company already operates platforms designed to connect people with communities, giving it relevant experience for the project.
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For Japan’s technology industry, the Furusato Resident Registration System could become a useful test case for how digital platforms can support regional economies at scale. For businesses, it could create new channels for customer engagement, tourism, recruitment and community participation.
The ultimate measure of success will not simply be the number of application downloads. It will be whether digital connections lead to lasting relationships between people, municipalities and local businesses.
If the model succeeds, Japan could establish a repeatable approach to regional digital transformation — using technology not just to make government services more efficient, but to build stronger economic and social connections between communities and the people who care about them.
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