Efficient: Indonesian Journal of Development Economics
p-ISSN 2655-6197 | e-ISSN 2655-318X The journal publishes original research and conceptual analysis of economic development, problems and policies in Indonesia. Abstracting/Indexing: DIMENSION | SINTA | GARUDA
Agricultural Infrastructure and Green Economic Growth in Indonesia
Indonesia’s development agenda toward 2045 prioritizes the transition toward a low-carbon economy, yet agri-food systems still face logistics inefficiencies, resource constraints, and climate vulnerability. This study examines whether Enabling Infrastructure Capacity (EIC) and Agricultural Production Support Capacity (APSC) contribute to green economic performance and whether Socioeconomic Performance (SEP) mediates these relationships. A quantitative multi-method approach is applied by combining Partial Least Squares Structural Equation Modeling (PLS-SEM) and fixed-effects panel regression. The study uses secondary data from 33 Indonesian provinces over the 2011–2020 period. The PLS-SEM model evaluates structural relationships among EIC, APSC, SEP, and the Green Economy Index (GEI), while the panel regression assesses the association between observed infrastructure-service indicators and Gross Regional Domestic Product (GRDP). The results show that EIC and APSC have positive and significant direct relationships with GEI and SEP. However, SEP does not significantly mediate the relationships between EIC/APSC and GEI. The panel results show that access to safe drinking water is positively associated with GRDP, while electricity access, road length, and irrigation rehabilitation are not significant. These findings emphasize the importance of infrastructure service quality, agricultural production-support capacity, and green-oriented policy instruments.
Copyright (c) 2026 Efficient: Indonesian Journal of Development Economics
Enhancing Local Government Revenue Through Municipal Enterprises: A Case Study of Taman Satwa Taru Jurug Zoo
This study examines how the implementation of Good Corporate Governance (GCG) principles functions as a strategic instrument for improving the financial performance of a Regional-Owned Enterprise (BUMD), particularly in increasing Regional Original Income (PAD). This study is urgent as it addresses governance challenges faced by traditional BUMDs transitioning into modern, partner-managed tourism enterprises. This study employs a qualitative descriptive approach, utilizing in-depth interviews with key management personnel and stakeholders, complemented by document analysis of regulatory frameworks, financial reports, technical proposals, and official publications related to the revitalization process. The data were analyzed to assess how each GCG principletransparency, accountability, responsibility, independence, and fairnesswas operationalized in the company’s strategic decisions and management practices. The findings reveal that transparency in decision-making and partnership arrangements increased public trust, accountability enhanced operational efficiency, and responsibility strengthened long-term business sustainability. Furthermore, independence allowed management to make objective and professional business decisions without undue political or external intervention, fostering healthier relationships among stakeholders.
Did Monetary Policy Stabilize Inflation during the COVID-19 Pandemic? Evidence from Indonesia
This study examines the relationship between monetary policy and inflation in Indonesia during the COVID-19 period, from March 2020 to June 2023, over the short and long term. It focuses on how interest rates, money supply, and exchange rates influence inflation and identifies which factor is most effective. Using Indonesian monthly time-series data, the analysis employs econometric methods, including an error correction model, to assess stationarity, long-term relationships, and cointegration. The results show that the exchange rate is the most influential driver of inflation in both the short and long run, while interest rate policy is less effective, especially during crises. These findings challenge the conventional view that interest rate adjustments alone can stabilize inflation, emphasizing the critical role of exchange rate management. The study also finds that changes in the exchange rate begin to affect inflation within five periods, indicating a rapid short-term transmission. Overall, this research underscores the importance of coordinated monetary and exchange rate policies to maintain price stability and economic resilience in Indonesia, especially during crises.
Reconfiguring Environmental Performance Governance Beyond Disclosure: A Framework for Emerging Economies
This study proposes the Global Reporting Initiative–Environmental Performance Integration (GRI–EPI) Framework as a gap from existing studies paying insufficient attention to the governance mechanisms through which disclosure. The Framework explains how global reporting regimes interact with national regulatory contexts and organizational governance structures to enable the integration of environmental performance into strategic and operational decision-making. This study synthesizes global sustainability reporting standards, governance and development literature, and national policy contexts, with Indonesia employed as an illustrative application of typical emerging-economy conditions. The framework explicitly specifies key governance parameters—including decision-level entry points, authority coupling, incentive and accountability linkages, and institutional mediation—that condition whether sustainability disclosure becomes decision-relevant or remains symbolically decoupled from performance. The framework identifies key governance pathways and baseline integration conditions necessary for translating disclosure into performance-oriented outcomes.
Analysis of Monetary and Fiscal Policies on Economic Growth
This paper examines the effect of the combination of monetary and fiscal policies on economic growth in North Sumatera Province using time series data for the period 2010-2024. The analysis was conducted using VAR method and forecasting. The result show that local government spending and Local Own-Source Revenue contribute positively and significantly to economic growth. Conversely, inflation has a negative and significant impact on economic growth. These findings confirm that local fiscal instruments are the main drivers of the economy. On the other hand, General Allocation Funds and the BI Rate are not proven to have a significant effect on economic growth. No flypaper effect was found, because Local Own-Source Revenue plays a greater role in driving RGDP than General Allocation Funds, indicating that North Sumatra's economic performance is more supported by its internal potential. For the Policy Mix, a combination of expansive and productive fiscal policies with stable and accommodative monetary policies is most effective. While local governments support growth, BI stabilizes and provides a favorable economic environment.
Reformulating Indonesia’s Development Paradigm toward Sustainable Prosperity
This study reexamines Indonesia’s development paradigm with a focus on achieving sustainable welfare. Employing a dynamic panel data approach, the analysis investigates the effects of social, economic, and environmental dimensions on sustainable welfare proxied by the Gini ratio across 34 provinces over the 2019–2024 period. To address endogeneity concerns and capture dynamic relationships, the Generalized Method of Moments (GMM) is applied. The estimation results from the FDGMM, SYSGMM, and DPGMM models satisfy the criteria of validity, consistency, and unbiasedness. Overall, the findings indicate that the explanatory variables in all three models exert a strong, negative, and statistically significant effect on inequality reduction, thereby enhancing sustainable welfare. However, per capita income exhibits a positive yet statistically insignificant impact on welfare in both the short and long run. Based on these findings, the study recommends a reformulation of Indonesia’s development paradigm toward sustainable welfare by positioning the Human Development Index (HDI) as the core foundation of development and structural reform. The results underscore the need for policy innovation that prioritizes HDI-based development, accelerates structural transformation, and promotes green job creation. Ultimately, progressive, inclusive, and consistent policy design is essential for achieving sustainable wellbeing, with a strong emphasis on equity and long-term sustainability
Analysis of Factors Influencing Regional Financial Independence in Regencies/Cities in Yogyakarta
This study aims to determine the factors influencing regional financial independence in regencies/cities in the Special Region of Yogyakarta Province. This study uses panel data regression analysis which is a combination of cross-sectoral data from 5 regencies/cities in the Special Region of Yogyakarta Province and time series data from 2014-2024. The results of this study indicate that special funds, regional revenues, and special allocation funds have a significant positive influence on regional financial independence. Meanwhile, general allocation funds have a negative but insignificant influence on regional financial independence in regencies/cities in the Special Region of Yogyakarta Province. Regional financial independence can be improved by optimizing regional revenues and utilizing specific and asymmetric fiscal transfers so as not to rely on transfer funds that tend not to encourage regional financial independence.
Rice Production Spillovers from Lampung Supplier Districts on Urban Poverty in Bandar Lampung
This study examines both the long-run relationship and short-run dynamics between urban poverty and hinterland rice supply. The unit of analysis comprises Bandar Lampung City and five rice-producing districts (Central Lampung, East Lampung, South Lampung, Mesuji, and Tulang Bawang) which together form an integrated urban–rural economic system. Quarterly time-series data for the period 2010Q1–2024Q4 (approximately 60 observations) are employed to enhance statistical power. Variables originally available at lower frequencies are temporally disaggregated into quarterly series using linear interpolation, and data consistency is verified through aggregation tests and robustness checks. An Error Correction Model (ECM) is applied to capture equilibrium relationships and short-term adjustments. The long-run results indicate that real GRDP per capita significantly reduces poverty, whereas unemployment and the rice production index are not statistically significant. The Engle–Granger test confirms cointegration among the variables. In the short run, the error correction term is negative and significant, suggesting gradual adjustment toward long-run equilibrium. Overall, income growth emerges as the primary driver of poverty reduction, while the effect of rice supply operates indirectly and more slowly through market transmission mechanisms.
Determinants of Business Productivity in the Tourism Sector of Magelang Regency
The tourism sector's GRDP in Central Java shows continuous growth, but its contribution to the regional GRDP is stagnant or even declining. This indicates that tourism sector growth is not always accompanied by regional economic growth. This study aims to analyze the factors influencing tourism sector business productivity in Magelang Regency in 2025 using a quantile regression approach. The study sample consisted of 65 businesses participating in the Tourism Office's development program. The dependent variable in this study is business productivity, measured by revenue, while the independent variables include initial capital, workforce, education, training, length of business, business legality, certification, community involvement, partnerships, technology and internet use, financial inclusion, and policy support. This study found that the workforce has a positive and significant impact on business productivity at all quantile levels. Conversely, initial capital, length of business, business legality, and financial inclusion have no effect, while the variables of education, certification, internet use, community, and partnerships show different results at each quantile level. These results indicate that increasing tourism business productivity is largely determined by human resource capacity. In this regard, policies aimed at strengthening workforce skills, increasing access to certification, and utilizing digital technology will positively impact business productivity. Programs related to financing, legality, and partnerships need to be evaluated to positively impact tourism businesses.
Philosophy of Justice as the Foundation of Sharia Economics: Islamic Consumption Ethics Analysis in Digital Age
This study aims to explore the integration of Islamic justice philosophy (al-ʿadl) with contemporary consumption behavior, particularly in the context of the digital economy. It examines how justice, as a fundamental Islamic value, shapes ethical decision-making in consumption and influences socio-economic structures amid rapid technological transformation. The method employed is a qualitative literature review, synthesizing classical Islamic thought, modern economic theories, and recent empirical studies on consumer ethics and digitalization. The results reveal that justice serves not only as a normative principle but also as a practical framework that guides consumption toward balance, social responsibility, and sustainability. Furthermore, integrating justice into economic policies and educational systems enhances conscious consumption and reduces socio-economic disparities. This research contributes to the development of a philosophical and ethical foundation for Islamic economics that is relevant and responsive to the challenges of the digital age.
The Role of Higher Education in Driving Innovation and Economic Growth: Literature Review
Higher education is a primary pillar of modern economic development, playing a crucial role in knowledge development, human capital formation, and innovation creation. In a knowledge-based economy, universities function not only as educational institutions but also hold a strategic role in research, technological innovation, and cross-sector collaboration through models such as the Multi-Helix. This study employs a Systematic Literature Review (SLR) approach and bibliometric analysis using the PRISMA method on 128 Scopus-indexed articles from the 2015–2025 period. The analysis was conducted to map publication trends, geographical distribution, collaboration networks, and key research themes using VOSviewer software. The results indicate that publication trends increased significantly after 2022, reaching a peak in 2024, with dominant contributions from European countries, particularly the United Kingdom, as well as China, Italy, and Spain. Central themes dominating the literature include "economic growth" and "innovation," which are linked through mechanisms of human capital, academic entrepreneurship, technology transfer, and the development of innovation ecosystems. Higher education plays a strategic role in driving innovation and economic growth by strengthening university innovation capacity, fostering cross-actor collaboration, developing entrepreneurial ecosystems, and improving the quality and distribution of human capital. However, these contributions are highly dependent on the regional context, institutional governance, integration with public policy, and the ability to effectively measure and manage the impact of innovation.
Gold Price Fluctuations Affecting to People's Purchasing Power with Interest Rate as Moderating Effect in Indonesia
This study aims to analyze the effect of gold prices on inflation, purchasing power, and exchange rates in Indonesia during the period 1995-2024. Gold is a hedging investment that is sensitive to changes in exchange rates, global economic turmoil, and market risk perceptions. Rising gold prices often reflect uncertainty in economic terms, which can lead to inflation due to an increase in goods and services. Uncontrolled inflation has a negative impact on people's purchasing power, especially in fixed income groups. Conversely, people who have gold investments may experience an increase in nominal wealth, thus potentially increasing income indirectly. This study uses a quantitative approach with secondary data from the Central Bureau of Statistics (BPS), Bank Indonesia, and the World Gold Council. The results of the analysis show a positive relationship between the increase in gold prices and inflation, as well as a negative correlation with people's purchasing power, but the increase in gold prices has an impact on the increase (appreciation) of the dollar against IDR and the value of IDR depreciates.
The Effect of Regional Fiscal Capacity and Capital Expenditure on Economic Growth in Central Java Province
This study will review the outcome of the fiscal policies and capital expenditure of the region on economic growth on Central Java Province in the 2021-2024 period. In panel data regression analysis performed with EViews 12 using quantitative approach. The findings indicate that regional retribution and capital expenditure have a positive as well as significant influence to the economic growth whereas the same is not true of the regional tax. This analysis shedding light on the fact that long term economic growth is possible by making good fiscal management and a specific focus on investment by the government. In practice, the results offer some strategic information to policymakers that can improve regional financial autonomy, and efficiency of capital expenditure and inclusion and sustainability of regional development.
The Dynamics of Population Aging and Public Health Expenditure on Economic Growth: An Empirical Study in the Asia-Pacific Region
In recent years, empirical studies on population aging have gained significant attention as it has become a major global issue facing both developed and developing countries. Population aging has the potential to exert adverse effects by decreasing labor force participation and productivity among the elderly, as well as causing imbalances between savings and investment that may lead to economic stagnation. Meanwhile, good health plays a crucial role in enhancing human resource quality and economic productivity. The objective of this empirical study is to explore the relationship between population aging, public health expenditure, and economic growth. Utilizing a panel data regression model, this study analyzes data from 30 countries in the Asia-Pacific region over the 2008–2022 period. Based on secondary data sourced from the World Bank, the estimation results clearly demonstrate that population aging is detrimental to a country's economic growth, whereas public health expenditure yields a significant positive impact on economic growth in the Asia-Pacific region. This research is expected to serve as a reference for policymakers in designing strategies to enhance national resilience in facing demographic structural changes.
Internal and External Determinants of Village Own-Source Revenue: Evidence from 30 Villages in North Tasikmalaya
This study aims to determine and identify internal and external factors that affect village revenue with a case study of North Tasikmalaya including Sukaratu, Cisayong, Sukahening, Rajapolah, Jamanis, Ciawi, Sukaresik, Pagerangeung, and Kadipaten sub-districts. The method used in this research is a quantitative approach to primary data with data collection techniques using questionnaires. This research sampling technique uses Proportionate Stratified Random Sampling. The data analysis method uses the Structure Equation Model-Partial Least Square (SEM-PLS) through 3 analyses: outer model, inner model, and hypothesis testing. The results showed that human resource capacity and government policy significantly influenced village revenue. Meanwhile, community participation, accessibility, and infrastructure do not influence village revenue. The lack of community participation is due to the community's indifference in advancing the village. Accessibility and infrastructure are also strategic issues that not all villages have adequate access and infrastructure so that regional economic development is not optimal.
Dynamics of Monetary Freedom, Labour, and FDI in Indonesia: A VECM Analysis
The research outlined here was directed by the Vector Error Correction Model (VECM) in its investigation of the connection between monetary freedom, labor market, and foreign direct investment in Indonesia. Historical time series data have been used in the model and diagnostic tests employed to ensure the validity and reliability of the results. The cointegration test confirms the cointegration of all variables which reflects the presence of linkages both in the short run and long run. This research contributes to the understanding of monetary freedom, labor market dynamics, and foreign direct investment in Indonesia through a better comprehension of their economic interrelationships.
Copyright (c) 2025 Efficient: Indonesian Journal of Development Economics
Local Food Resources, Food Security, and Regional Economic Outcomes: A North Sulawesi Empirical Model
This research aims to analyze the influence of local food resources on food security and its impact on the local economy. The background of the research departs from the condition of North Sulawesi Province which has unique geographical characteristics with abundant natural resources, agriculture, and fisheries. Nevertheless, this region still faces challenges in the form of dependence on food supply from outside, fluctuations in commodity prices, and suboptimal economic diversification based on local potential. The research method used is to use a quantitative approach with path analysis using SEM-PLS. Primary data was obtained from 82 respondents involved in local food management and utilization. The results of the study show that food security has a direct and significant effect on the local economy. Local food resources have also been shown to have a direct and significant effect on food security, but do not have a direct effect on the local economy. In addition, there is a significant indirect influence of local food resources through food security on the local economy. This research is expected to contribute to the government as a policymaker in encouraging food security based on local potential to improve the local economy, especially in North Sulawesi Province.
A Circular Economy Development Model to Enhance Circularity and Value Capture in Food MSMEs
This study aims to analyze the application of the circular economy in micro, small, and medium enterprises (MSMEs) in the food and beverage sector in Central Java Province and formulate an efficient and sustainable ecosystem development model. The research employed an exploratory descriptive method with a case study approach, examining 60 business units across four districts/cities: Semarang, Semarang Regency, Kendal, and Kudus. The analysis was conducted using a circular economy calculator to measure four key indicators: circularity, value capture, recycled content, and reuse index. The results showed that the circularity level in food MSMEs was still low, with 75.5% of respondents falling within the range of 1-5%. Most of the value capture, recycling content, and reuse index scores were also below 1%. This condition reflects the limitations of knowledge, access to technology, and the availability of adequate waste management infrastructure.
Socioeconomic Determinants and Their Interactions in Shaping Improved Sanitation Access in Indonesia
Access to adequate sanitation facilities is a key agenda in Sustainable Development Goal (SDG) 6, but is still an urgent development issue in Indonesia. The equitable distribution of sanitation services between regions has not been fully achieved due to strong regional disparities, high levels of poverty, and ongoing socio-economic inequality. This study aims to analyze the socio-economic determinants that affect the level of community access to adequate sanitation facilities in Indonesia. The quantitative approach was used through regression analysis of panel data at the provincial level during the 2019-2023 period, utilizing secondary data sourced from the Central Statistics Agency (BPS) and the World Bank. The dependent variable in this study is the proportion of households that have access to proper sanitation facilities. Meanwhile, Gross Regional Domestic Product (GRDP), Gini ratio, poverty rate, and life expectancy are used as independent variables that represent the economic condition of the region, income distribution, social vulnerability, and the level of welfare of the population. The results show that the increase in regional GRDP has a positive and significant effect on sanitation access. Life expectancy also positively related to the availability of good sanitation. On the contrary, higher income inequality and a large prevalence of poverty have been shown to decrease people's chances of obtaining proper sanitation services.
Impact of Digital Technology Access and Structural Factors on Women’s Labor Force Participation in Indonesia
This study examines the effects of digital technology access, gender equality, regional economic development, and minimum wage policy on women’s labor force participation in Indonesia. Using an annual provincial panel data set for the period 2015-2024 (t = 10), yielding 340 annual observations, the analysis applies a dynamic panel regression based on an Error Correction Model to distinguish long-run relationships from short-run dynamics. The results confirm a long-run relationship between digitalization, the gender development index, gross regional domestic product per capita, the provincial minimum wage, and women’s labor force participation. In the long run, the gender development index, gross regional domestic product per capita, and the provincial minimum wage have positive and statistically significant effects on women’s participation, while digitalization has a positive but not yet significant effect. In the short run, changes in digitalization, the gender development index, and gross regional domestic product per capita positively and significantly affect changes in women’s labor force participation, whereas changes in the provincial minimum wage are not significant. These findings suggest that digitalization mainly acts as a short-run opportunity trigger, while progress in gender equality, rising regional prosperity, and an adequate minimum wage function as key structural determinants of stronger women’s labor force participation in the digital economy.
The Effect of Human Development Index, Foreign Direct Investment, and Technology on Income Inequality in Six Asian Countries
Economic growth usually shows how much a country has grown. The ASEAN-5 which includes Indonesia, Malaysia, Thailand, Singapore, and the Philippines are important for Southeast Asia's economy. This study examines the effect of government spending, gross fixed capital formation, and labor on economic growth in the period 2000–2023 using secondary data from the World Bank. This study applies panel data regression through the Fixed Effects Model (FEM). The findings show that government spending, gross fixed capital formation, and labor have a positive and significant impact on economic growth in the ASEAN-5 countries. Thus, the effectiveness of government spending, optimization of fixed capital investment, and utilization of productive labor are important factors in promoting sustainable economic growth in the region.
What Drives Inequality in Sumatra? Evidence from Provincial Panel Data, 2015–2024
This research analyzes the relationship between income inequality, measured by the Gini ratio, and key socioeconomic variables such as regional minimum wages, poverty levels, human development, and unemployment across ten provinces in Sumatra from 2015 to 2024. Utilizing annual panel data sourced from BPS and applying a panel regression approach, the Random Effects model was selected as the most appropriate based on specification tests. The findings reveal that higher minimum wages and improved human development outcomes are associated with reduced income inequality, while greater poverty levels are linked to a widening income gap. In contrast, unemployment does not exhibit a statistically significant effect on the Gini ratio. A 1 percent increase in the minimum wage is associated with a 0.00052 reduction in the Gini ratio (≈ 0.052 Gini points) on the 0–1 scale, and a 10 percent increase with ≈ 0.005 (≈ 0.5 Gini points). A one-point improvement in the Human Development Index (HDI) is associated with a 0.002 reduction in the Gini ratio (≈ 0.2 Gini points). These insights support policy measures that enforce fair wage standards, strengthen human capital, and reduce poverty to foster more inclusive growth across Sumatra.
Actor Interactions for Circular Economy Implementation in Rural–Urban Interfaces: Evidence from Malang Regency
This study aims to analyze the role of collaboration between actors in achieving sustainable development goals through the implementation of a circular economy in Karangwidoro Village, Malang Regency, East Java, Indonesia. Malang Regency was chosen because it has representative peri-urban characteristics, with rapid urbanization and coexistence between urban and rural elements. The data used are primary data through in-depth interviews and direct observation. Data collection was carried out from February to March 2025. This study uses MACTOR (Matrix of Alliances and Conflicts, Tactics, and Objectives for Risk Analysis) analysis to analyze among 9 main stakeholders, such as managers, partners, government officials, academics, and local communities. The research findings show that strong collaboration between central actors such as local governments, program managers, and academic institutions is critical to the successful implementation of a circular economy. However, challenges remain, especially with peripheral actors such as local communities, whose involvement tends to be sporadic and dependent on external factors. This study concludes that to ensure the sustainability of the program, collaboration between various existing actors is very important in achieving sustainable development goals through a circular economy, by utilizing synergies between government, society, private sector, and academics.
Monetary Instruments Against the Indonesian Sharia Stock Index: Moderation in Gross Domestic Product
The Indonesian Sharia Stock Index (ISSI) is an indicator that represents the price performance of all sharia-compliant stocks listed on the Indonesia Stock Exchange (IDX). Over the past three years, ISSI capitalization has experienced significant growth. However, this development is still influenced by the dynamics of external factors, particularly macroeconomic variables such as inflation, the IDR exchange rate, and the BI 7-Day Reverse Repo Rate (BI 7-Day RR). The purpose of this study is to analyze the effect of inflation, the IDR exchange rate, and the BI 7-Day RR on the ISSI and to examine the role of GDP in moderating this relationship. The study uses a quantitative associative approach with Indonesian time series data for the 2021–2023 period. Analysis techniques include classical assumption testing, multiple linear regression with a Moderated Regression Analysis (MRA) approach, and hypothesis testing. The results indicate that inflation has no significant effect on the ISSI. Conversely, the IDR exchange rate and the BI 7-Day RR were shown to have a significant effect on the ISSI. Other findings indicate that GDP strengthens the influence of the IDR exchange rate and the BI 7-Day RR on the ISSI, but does not moderate the relationship between inflation and the ISSI.
Analysis of The Effect of Food Commodity Price Changes on Inflation in Central Java
Commodity price movements have a significant impact on regional economic stability, especially in terms of inflation. In Central Java Province, fluctuations in the prices of rice, shallots, curly red chilies, red cayenne peppers, and cooking oil are the main causes of inflation. This phenomenon requires a more in-depth examination of the relationship between price fluctuations and inflation. This means that studies at the regional level are still limited. The purpose of this study is to analyze the impact of commodity price changes on inflation in Central Java. The data used is from 2021 to 2025 using the Autoregressive Distributed Lag (ARDL) - Error Correction Model (ECM) method. The data used is monthly secondary data obtained from the Central Statistics Agency (BPS) and the National Food Agency. The estimation results show that in the short term, the variables of curly red chili price, previous period curly red chili price, previous period rice price, and previous period cooking oil price have a significant effect on inflation, while in the long term, curly red chili price has a positive effect and rice price has a negative effect on inflation in Central Java. The CointEq(-1) coefficient, which has a value of -0.106705 and is significant, indicates the existence of a correction mechanism towards long-term equilibrium. This value suggests that around 10.67% of the deviation of inflation from its equilibrium in the previous period is adjusted or corrected during the current period.
Sustainable Development Based on SDGs: Assessment on Blue Economy Potential in Labuang, Majene
The degradation of marine ecosystems and the underutilization of coastal resources have become major challenges in achieving sustainable economic growth in many coastal regions of Indonesia. Labuang Village in Majene Regency, which possesses abundant marine and coastal resources, faces similar issues related to limited resource optimization and weak institutional support. This research seeks to evaluate the Blue Economy potential of Labuang Village within the context of Embedded Sustainability, and the Sustainable Development Goals. This qualitative research was conducted employing a case study approach with five purposive participants to represent the primary stakeholders: fishermen, seaweed ranchers, village administration, and community leaders. Data were inquired through in-depth interviews, field observations, and document reviews, and were subsequently analyzed using NVivo to code by thematic analysis. The results of the research indicate that Labuang Village has significant potential in capture fishery, seaweed farming, and marine tourism, which impacts the attainment of SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 14 (Life Under Water). However, the potential remains dormant, as there is a glaring absence of infrastructure, funding, and technology. A triadic alliance of the state, community, and business actors is thus mandated to fully harness the potential of the region's Blue Economy.
The Effect of Government Expenditure, Fixed Capital Investment, and Labor on Economic Growth in ASEAN-5 Countries
Exploring the Economic Potential of The Region: Spatial Analysis of Key Sectors for Food Security in Lampung
Food security is a strategic issue and a priority for national development in Indonesia, particularly in provinces with significant agricultural potential such as Lampung. This study aims to identify leading and potential sectors that contribute to strengthening food security by applying Location Quotient (LQ), Growth Ratio Model (GRM), Overlay Analysis, and Spatial Analysis. The LQ results indicate seven basic sectors, including food crops, agricultural services, livestock, fisheries, plantations, horticulture, and the food and beverage industry. Further analysis through GRM and Overlay shows that livestock and the food and beverage industry are categorized as leading sectors, while food crops, agricultural services, fisheries, plantations, and horticulture are identified as potential sectors. Spatial analysis highlights Central Lampung, East Lampung, South Lampung, Tulang Bawang, and North Lampung as key regions with sectoral specialization, supported by natural resources, infrastructure, and industrial networks. The findings demonstrate that Lampung Province plays a vital role as a national food barn, but challenges remain, including land conversion, productivity disparities, and post-harvest management. Therefore, integrated policies that combine sectoral revitalization, spatial planning, and sustainable management are required. This research provides a comprehensive foundation for formulating regional economic development strategies to enhance food security resilience in Lampung Province.
The Impact of Mineral Resources Windfall on Poverty Through Fiscal Transmission
Following the implementation of fiscal decentralization, the Indonesian government has employed natural resource revenue-sharing funds as a mechanism to allocate revenues from the mining sector to producing areas. Nonetheless, research regarding the effects of fiscal windfall from mining at the local level in Indonesia remains scarce. This study aims to address the research gap by examining the impact of natural resource abundance through the distribution of mining revenue sharing funds on poverty on Sulawesi Island, the biggest nickel-producing and processing region in Indonesia. Analysis of panel data from 51 districts in Central Sulawesi, South Sulawesi, and Southeast Sulawesi for the period 2017-2022, utilizing the Fixed Effect estimation method, reveals that mining revenue sharing, intended to mitigate the adverse externalities of mining projects and alleviate poverty, is not statistically significant. Sub-sample analysis reveals that mining revenue sharing correlates with a rise in poverty rates in Southeast Sulawesi, indicating the presence of the resource curse phenomena. Simultaneously, the contributions of mining and industrial GRDP, the human development index, and the proportion of “Program Keluarga Harapan (PKH)” recipients affected the alleviation of poverty. This research underscores the necessity for the government to account for local fiscal capability and institutional quality in the administration of mining revenue sharing funds, while also advocating for economic diversification to enhance the welfare of local populations.
Competitiveness of Indonesia Palm Oil in the International Market
Indonesia is the largest exporter of palm oil in the world. The growth of production and exports and the decreasing of import Indonesia palm oil should also increases the competitiveness of Indonesia palm oil in the International market. Therefore, We need to know the competitiveness of palm oil in Indonesia by calculate the value of export, production, and import through descriptive method model analysis using Import Dependency Ratio (IDR), Self Sufficiency Ratio (SSR), and Revealed Comparative Advantage (RCA) as the analysis tools. The data we used in this research is secondary data from Central Bureau of Statistic and UN Comtrade year 1990 until 2022.