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Environmental and Economic Clustering of Indonesian Provinces: Insights from K-Means Analysis Noviandy, Teuku Rizky; Hardi, Irsan; Zahriah, Zahriah; Sofyan, Rahmi; Sasmita, Novi Reandy; Hilal, Iin Shabrina; Idroes, Ghalieb Mutig
Leuser Journal of Environmental Studies Vol. 2 No. 1 (2024): April 2024
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/ljes.v2i1.181

Abstract

Indonesia's archipelago presents a distinctive opportunity for targeted sustainable development due to its complex interplay of economic advancement and environmental challenges. To better understand this dynamic and identify potential areas for focused intervention, this study applied K-means clustering to 2022 data on the Air Quality Index (AQI), electricity consumption, and Gross Regional Domestic Product (GRDP). The analysis aimed to delineate the provinces into three distinct clusters, providing a clearer picture of the varying levels of economic development and environmental impact across the nation's diverse islands. Each cluster reflects specific environmental and economic dynamics, suggesting tailored policy interventions. The results show that for provinces in Cluster 1, which exhibit moderate environmental quality and lower economic activity, the introduction of sustainable agricultural enhancements, eco-tourism, and renewable energy initiatives is recommended. Cluster 2, marked by higher economic outputs and moderate environmental conditions, would benefit from the implementation of smart urban planning, stricter environmental controls, and the adoption of clean technologies. Finally, Cluster 3, which includes highly urbanized areas with robust economic growth, requires expanded green infrastructure, improved sustainable urban practices, and enhanced public transportation systems. These recommendations aim to foster balanced economic growth while preserving environmental integrity across Indonesia’s diverse landscapes.
Decrypting the Relationship Between Corruption and Human Development: Evidence from Indonesia Hardi, Irsan; Saputra, Jumadil; Hadiyani, Rahmilia; Maulana, Ar Razy Ridha; Idroes, Ghalieb Mutig
Ekonomikalia Journal of Economics Vol. 1 No. 1 (2023): July 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v1i1.22

Abstract

Corruption is considered endemic in a large part of the world's population and is believed to be a factor that disrupts market behavior and distorts competition, thereby hindering economic growth and human development. This study aims to unveil the impact of corruption on Indonesia's human development through various approaches, utilizing Fully-Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Moderated Regression Analysis (MRA), Path Analysis, and Vector Error Correction Model (VECM) methods, with data covering the period from 1995 to 2022. The results of the estimation are discussed in three parts: 1) Dynamic Impact, by analyzing the long-term direct effect of corruption on human development; 2) Indirect Impact, by examining the role of government expenditure, tax revenue, and public debt in mediating the effect of corruption on human development; and 3) Causal Impact, by determining the unidirectional and bidirectional relationships between all variables studied. The findings indicate that corruption does not have a lasting direct impact on human development. Moreover, government expenditure and public debt play a role in moderating the impact of corruption on human development. Additionally, there is no causal link between corruption and human development, whereas there are causal connections between human development, government expenditure, tax revenue, and public debt. The results of this study will be valuable in assessing the extent of corruption's impact on human development, particularly in Indonesia, and aim to raise awareness of policymakers, hence encouraging individuals to participate in combating corruption.
Unveiling the Carbon Footprint: Biomass vs. Geothermal Energy in Indonesia Idroes, Ghalieb Mutig; Syahnur, Sofyan; Majid, M. Shabri Abd; Idroes, Rinadi; Kusumo, Fitranto; Hardi, Irsan
Ekonomikalia Journal of Economics Vol. 1 No. 1 (2023): July 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v1i1.47

Abstract

Global climate change, caused by greenhouse gases (GHGs) emissions, particularly carbon dioxide (CO2), has an enormous and unprecedented impact on our planet's ecosystem, development, and long-term sustainability. This study investigates the dynamic impact of biomass and geothermal energy on CO2 emissions in Indonesia from 2000 to 2020. Employing the Green Solow model with the approach of Fully-Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Autoregressive Distributed Lag (ARDL) and Pairwise Granger causality test. The cointegration tests suggest the existence of a long-term equilibrium relationship between CO2 emissions, biomass, and geothermal energy. Empirical evidence reveals that although biomass and geothermal energy positively influence CO2 emissions, their overall impact is relatively low. This highlights the potential for these renewable energy sources to contribute to CO2 reduction and promote environmental sustainability. The Granger causality test confirms a causal relationship between CO2 emissions, biomass, and geothermal energy. Important policy recommendations for promoting sustainable energy practices in Indonesia involve investing in high-quality biomass and geothermal facilities to reduce emissions, implementing energy efficiency programs and fossil fuel conservation measures, and encouraging the use of electricity-based biomass and geothermal energy sources to reduce dependence on non-renewable fuels. These recommendations play a crucial role in achieving environmental and economic sustainability.
Natural Disasters and Economic Growth in Indonesia Idroes, Ghalieb Mutig; Hardi, Irsan; Nasir, Muhammad; Gunawan, Eddy; Maulidar, Putri; Maulana, Ar Razy Ridha
Ekonomikalia Journal of Economics Vol. 1 No. 1 (2023): July 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v1i1.55

Abstract

Natural disasters can have a profound impact on a country's economic growth, making it crucial for policymakers to understand the relationship between natural disasters and economic growth in order to develop effective strategies that mitigate adverse effects and promote sustainable development. The study utilizes secondary data spanning from 1990 to 2021 and employs the Fully-Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Canonical Co-Integrating Regression (CCR), and Vector Error Correction Model (VECM) methods. The study's findings provide valuable insights into the substantial effects of natural disasters on economic growth, indicating a positive long-term impact. Furthermore, the analysis highlights a unidirectional causality, illustrating the notable influence of natural disasters on the country's economic performance. Policymakers should prioritize investments in upgrading and retrofitting infrastructure, focusing on key sectors like transportation, energy, water, and telecommunications, to mitigate the adverse effects of natural disasters and promote sustainable economic growth.
Decomposed Impact of Democracy on Indonesia’s Economic Growth Hardi, Irsan; Ringga, Edi Saputra; Fijay, Ade Habya; Maulana, Ar Razy Ridha; Hadiyani, Rahmilia; Idroes, Ghalieb Mutig
Ekonomikalia Journal of Economics Vol. 1 No. 2 (2023): November 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v1i2.80

Abstract

Indonesia's democratic performance is still classified as a 'moderate' and 'flawed democracy' according to the latest report, even though the ongoing progress of national democracy continues to advance every year. This study addresses the issue by offering a more comprehensive perspective and distinguishes itself by employing a decomposition approach that incorporates 25 indicators of the Indonesian democracy index to assess their individual effects on economic growth, which no prior Indonesian study has explored. The study classifies these indicators into six distinct categories: freedom and civil rights issues, discrimination issues, political and electoral issues, social and cultural issues, law and justice issues, and demonstration and community participation issues. The findings reveal that five out of the six categorized indicators have a crucial role and significantly impact economic growth. This evidence suggests that policymakers should prioritize a multifaceted approach, which includes bolstering the protection of civil rights and freedoms, combating discrimination, as well as reforming electoral and political processes. If implemented with transparency and inclusivity, this approach can pave the way for a more robust and prosperous democracy, leading to better and sustainable economic growth in Indonesia.
Economic Growth, Agriculture, Capital Formation and Greenhouse Gas Emissions in Indonesia: FMOLS, DOLS and CCR Applications Hardi, Irsan; Idroes, Ghalieb Mutig; Zulham, Teuku; Suriani, Suriani; Saputra, Jumadil
Ekonomikalia Journal of Economics Vol. 1 No. 2 (2023): November 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v1i2.109

Abstract

Economic growth drives increased demand for resources, placing greater pressure on the agricultural sector. While the adoption of advanced technologies and increased capital investment can enhance productivity, they also have environmental consequences, contributing to greenhouse gas emissions. Based on this interconnected issue, this study aims to examine the long-term relationships between economic growth, agricultural productivity, gross fixed capital formation, and greenhouse gas emissions in Indonesia, utilizing data from the period 1965-2021. The study employs the Dynamic Ordinary Least Squares (DOLS) and Fully-Modified Ordinary Least Squares (FMOLS) methods, and includes robustness checks using the Canonical Cointegration Regressions (CCR) method. To provide a more comprehensive insight, the study also employs the pairwise Granger causality approach to detect the direction of the relationships. In concise terms, the results suggest that agricultural productivity, gross fixed capital formation, and greenhouse gas emissions have a positive long-term influence on economic growth. Additionally, gross fixed capital formation has a negative effect, while economic growth has a positive long-term impact on agricultural productivity. Furthermore, agricultural productivity has a negative impact, while economic growth indicates a positive long-term effect on gross fixed capital formation. Moreover, economic growth positively influences greenhouse gas emissions over the long term. Lastly, the study found three bidirectional causalities, with greenhouse gas emissions as the central figure. These important findings provide crucial information for policymakers, economists, and environmentalists, giving a nuanced understanding of the intricate relationships between economic activities and environmental consequences, as well as aiding in the formulation of sustainable strategies for green economic growth, especially in Indonesia.
A Deep Dive into Indonesia's CO2 Emissions: The Role of Energy Consumption, Economic Growth and Natural Disasters Idroes, Ghalieb Mutig; Hardi, Irsan; Noviandy, Teuku Rizky; Sasmita, Novi Reandy; Hilal, Iin Shabrina; Kusumo, Fitranto; Idroes, Rinaldi
Ekonomikalia Journal of Economics Vol. 1 No. 2 (2023): November 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v1i2.115

Abstract

This study examines the influence of non-renewable energy consumption, renewable energy consumption, economic growth, and natural disasters on Indonesia's carbon dioxide (CO2) emissions spanning from 1980 to 2021. The Autoregressive Distributed Lag (ARDL) model is employed, with supplementary robustness checks utilizing Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegration Regression (CCR). The findings reveal that economic growth, along with non-renewable and renewable energy consumption, significantly affects CO2 emissions in both the short and long term. Robustness checks confirm the positive impact of non-renewable energy consumption and economic growth, while renewable energy consumption has a negative effect on CO2 emissions. Moreover, natural disasters exhibit a positive short-term impact on CO2 emissions. Pairwise Granger causality results further underscore the intricate relationships between the variables. To mitigate climate change and curb CO2 emissions in Indonesia, the study recommends implementing policies that foster sustainable economic development, encourage the adoption of renewable energy, and enhance disaster resilience.
Innovation and Economic Growth in the Top Five Southeast Asian Economies: A Decomposition Analysis Hardi, Irsan; Ray, Samrat; Attari, Muhammad Umer Quddoos; Ali, Najabat; Idroes, Ghalieb Mutig
Ekonomikalia Journal of Economics Vol. 2 No. 1 (2024): April 2024
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v2i1.145

Abstract

Innovation has the potential to act as a double-edged sword in impacting economic growth. While it serves as a powerful driver of economic advancement, it also carries risks alongside its benefits. Recognizing this duality, our study aims to fill the identified gap and add comprehensiveness to the literature by assessing the individual impact of innovation indicators on economic growth in the top five Southeast Asian countries based on GDP: Indonesia, Thailand, Singapore, Malaysia, and Vietnam. The innovation aspect comprises 21 indicators from the Global Innovation Index (GII), grouped into seven categories: institution, human capital and research, infrastructure, market sophistication, business sophistication, knowledge and technology outputs, and creative outputs. Both panel analysis and country-specific assessments consistently conclude that innovation significantly influences economic growth. However, delving into the categorized indicators reveals intriguing insights. While all the indicators demonstrate a notable impact, most of them are found to hinder rather than foster economic growth. This compelling empirical evidence underscores that innovation in the selected countries has yet to be optimized, highlighting the urgent need to implement innovation-friendly policies, including removing innovation barriers, targeting investment in key sectors, and fostering education and skills development. This holistic approach aims to cultivate an environment conducive to innovation, thereby solidifying innovation's role as one of the primary drivers of economic growth.
Enhancing Environmental Quality: Investigating the Impact of Hydropower Energy Consumption on CO2 Emissions in Indonesia Maulidar, Putri; Fadila, Sintia; Hafizah, Iffah; Zikra, Naswatun; Idroes, Ghalieb Mutig
Ekonomikalia Journal of Economics Vol. 2 No. 1 (2024): April 2024
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v2i1.180

Abstract

Achieving sustainable environmental quality has become a critical global issue, necessitating the reduction of carbon dioxide (CO2) emissions and greenhouse gas (GHG) emissions to mitigate environmental pollution. Hydropower energy has the potential to play a significant role in this effort by providing a clean, renewable energy source that can help reduce reliance on fossil fuels and decrease CO2 emissions. This study examines the dynamic impact of hydropower energy consumption, economic growth, capital, and labor on Indonesia's CO2 emissions from 1990 to 2020. Applying the Autoregressive Distributed Lag (ARDL) method, the findings demonstrate that hydropower energy consumption has a negative effect on CO2 emissions in both the short and long term, indicating that increasing hydropower energy consumption leads to a reduction in CO2 emissions. Conversely, labor exhibits a positive influence on CO2 emissions in both the short and long term, suggesting that a rise in labor contributes to higher levels of CO2 emissions in Indonesia. Furthermore, the Granger causality analysis reveals a bidirectional relationship between CO2 emissions and hydropower energy consumption. The robustness of ARDL results is confirmed through additional tests using Fully-Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegrating Regressions (CCR) methods. The findings underscore the importance of promoting sustainable hydropower energy for effective environmental management in Indonesia. Policymakers should prioritize investments in sustainable hydropower infrastructure, encourage the adoption of energy-efficient technologies, and develop a skilled workforce to mitigate the environmental impact of increased labor force participation.
Does Online Education Make Students Happy? Insights from Exploratory Data Analysis Noviandy, Teuku Rizky; Idroes, Ghalieb Mutig; Hardi, Irsan; Emran, Talha Bin; Zahriah, Zahriah; Rahimah, Souvia; Lala, Andi; Idroes, Rinaldi
Journal of Educational Management and Learning Vol. 1 No. 2 (2023): December 2023
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/jeml.v1i2.124

Abstract

This study investigates the impact of online education on student happiness. Utilizing a dataset of 5715 students sourced from Bangladesh, we employed an exploratory data analysis to analyze the quantitative data. The key finding is that there is a prevalent trend of dissatisfaction with online education among Bangladeshi students, regardless of demographic factors like age, gender, education level, preferred device for access, or type of academic institution. The dissatisfaction trend highlights the need of continuous improvements and targeted interventions are essential to ensure online education not only enables academic success, but also supports the overall wellbeing and happiness of students in the context of a developing country.