Efforts to integrate the use of ICT in various aspects of urban and regional development is the embodiment of the implementation of the smart city and region. One of the efforts is by developing a smart economy and smart business through Digital Small and Medium Enterprises (SMEs) Kampongs. This research is aimed at; 1) identifying the existence of Digital SMEs Kampongs, 2) identifying the Digital SMEs Kampongs' activities, 3) analysing the implications of the use of virtual space on the Digital SMEs Kampongs' activities. The primary data have been conducted through observation and in-depth interview. The results show that the existence of the Digital SMEs Kampongs can increase the use of virtual space, make the smart economy and smart business opportunities, improve the ability of community in running businesses and develop advanced SMEs. It has contributed to the achievement of smart city and region.