Sustainable Economy

Prawidya Hariani, Akbar Syahputra

Indonesia faces the dual challenge of sustaining economic growth while reducing environmental pressure in line with the Sustainable Development Goals (SDGs). Evidence regarding how green economy indicators relate to labor productivity in Indonesia remains limited, particularly during the post-SDG period. This study contributes by integrating green economy indicators with macroeconomic determinants of labor productivity within a unified empirical framework. The study analyzes selected green economy indicators and examines the relationship between labor productivity and key macroeconomic variables in Indonesia during 2014–2023 using a quantitative time-series approach. Descriptive analysis and Ordinary Least Squares regression are applied to annual national data. Results show that emission intensity declined from 5.1 to 4.0 and final energy intensity from 0.43 to 0.34, indicating improved environmental efficiency, while GDP per capita increased from approximately USD 3,600 to USD 4,870. Regression results indicate that labor force size is negatively associated with labor productivity (β = −0.4711; p = 0.0216), suggesting that increases in labor supply may reduce average productivity when not supported by skills and capital. GDP per capita is positively associated with productivity (β = 3.95 × 10⁻⁷; p = 0.0380), reflecting the role of structural upgrading and technological progress. Energy consumption is not statistically significant (p = 0.9545), indicating a weakening link between energy use and productivity. The model explains 62.49% of productivity variation (R² = 0.6249). Findings should be interpreted cautiously because of the small sample size. These findings support Indonesia’s transition toward a sustainable green economy through productivity-driven and environmentally efficient economic development.

Sustainable Economy

Kanya Octafirani Chandra

This study examines the relationship between Sustainable Development Goals (SDGs) economic pillar indicators and regional economic performance across Java Island, Indonesia, during the 2015–2022 period. Using panel data regression analysis, the study investigates the influence of electricity accessibility, open unemployment rate, manufacturing industry growth, income inequality, and internet usage on regional economic growth. The findings reveal that manufacturing industry growth is positively and statistically significantly associated with regional economic performance, indicating the important contribution of industrial sector expansion to economic development in Java Island. In contrast, internet usage demonstrates a negative and statistically significant association with economic growth. This result should be interpreted cautiously because it may reflect structural disparities, unequal digital productivity, or consumption-oriented internet behavior rather than a direct negative causal effect on economic performance. Meanwhile, electricity accessibility, open unemployment rate, and income inequality do not show statistically significant relationships with regional economic growth during the observed period. Overall, the findings suggest that sectoral productivity and structural economic transformation play a more substantial role than basic infrastructure indicators in shaping regional economic performance. These results contribute to the growing literature on SDGs-based economic development and provide practical insights for policymakers in formulating more balanced, inclusive, and sustainable regional development strategies. Strengthening productive sectors while improving the quality of digital utilization may support long-term economic resilience and sustainable development achievement across regions in Indonesia more effectively overall. Future studies are encouraged to include environmental, educational, and institutional indicators to provide broader explanations of regional economic sustainability in Indonesia today.

Sustainable Economy

Siti Syifaurrahmah, Wahyu Khalik

The increasing adoption of green economy narratives in tourism development raises important questions about how such principles are interpreted and practiced at the local level, particularly within conservation-based tourism settings. This study explores the implementation of green economy principles in community-based sustainable tourism at the Otak Kokok Joben Ecotourism Site, East Lombok, Indonesia. Using a qualitative descriptive case study approach, data were collected through semi-structured interviews with fifteen key stakeholders, field observations, and document analysis. Rather than assessing economic or environmental performance quantitatively, the study focuses on understanding local practices, perceptions, and governance arrangements related to green economy implementation. The findings indicate that green economy principles are primarily manifested through livelihood diversification, community participation in conservation activities, and normative commitments to environmental protection. However, the implementation remains uneven and is constrained by limited infrastructure, informal monitoring mechanisms, and fragmented institutional coordination. This study does not aim to evaluate impact or propose a generalizable development model. Instead, it provides contextual insight into the opportunities and limitations of translating green economy concepts into practice within a single ecotourism case. The findings contribute to the literature on sustainable tourism by highlighting how governance structures and local capacity shape the practical enactment of green economy principles in protected-area tourism contexts.

Sustainable Economy

Firda Aulia, Rismayanti Amir

This study examines the influence of the economic, social, and environmental pillars of the Sustainable Development Goals (SDGs) on poverty levels in Jeneponto Regency, Indonesia, where poverty remains a persistent development challenge despite ongoing policy interventions and gradual progress across several development indicators. This condition reflects structural constraints, unequal distribution of development benefits, and limited effectiveness of SDG-based programs in translating growth into welfare improvement. Therefore, the study aims to analyze whether growth in Gross Regional Domestic Product (GRDP), Human Development Index (HDI), and Environmental Quality Index (EQI) significantly contributes to poverty reduction. Using secondary data from 2013 to 2021 and multiple linear regression analysis through SPSS 20, the results reveal that GRDP, HDI, and EQI each have no significant effect on poverty levels (p > 0.05). Simultaneously, the three variables explain only 54.50% of the variation in poverty, while the remaining 45.50% is influenced by other factors such as governance quality, infrastructure availability, and institutional capacity. Despite slight improvements in economic output, human development, and environmental quality, these advances have not yet translated into meaningful poverty alleviation. The findings underscore the necessity of inclusive, community-based, and equitable development strategies to ensure that progress across the SDG pillars contributes effectively to reducing poverty and promoting sustainable welfare in Jeneponto Regency.

Sustainable Economy

Farah Amalia, Nur Kholis

Indonesia’s environmental challenges, such as vulnerability to climate-related disasters and increasing GHG emissions, demand urgent policy and financial solutions. This study examines the strategic role of Green Sukuk ST007 in supporting Indonesia’s green economy and its alignment with the United Nations' Sustainable Development Goals (SDGs). Using qualitative-descriptive analysis based on government and institutional data, the study explores the allocation of ST007 across 13 projects in four eligible sectors. Results show that ST007 raised IDR 5.42 trillion from 16,992 investors, achieving a GHG emission reduction of approximately 1.12 million tons, equivalent to planting 39,843 trees and supplying oxygen for over 34 million people. The majority of funds (61%) were directed to climate resilience projects. This confirms ST007’s strategic contribution to Indonesia’s sustainable financing agenda. In addition to its environmental impact, the findings highlight the policy relevance of expanding Green Sukuk as a key instrument for climate financing, particularly in strengthening national low-carbon strategies and enhancing stakeholder participation. However, further research is required to verify project-level impacts and long-term socio-economic outcomes.

Sustainable Economy