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p-Index From 2021 - 2026
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All Journal Salam (Islamic Economics Journal)
Try Waluyo, Adiet
Unknown Affiliation
Economics, Econometrics & Finance

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TRANSITION TO A GREEN ECONOMY: INTEGRATING NATURAL CAPITAL AND BASIC INFRASTRUCTURE INTO INDONESIA'S REGIONAL PRODUCTIVITY Choirunnisa, Luthfi; Try Waluyo, Adiet
Salam (Islamic Economics Journal) Vol. 8 No. 2 (2026): June 2026
Publisher : Universitas Islam Negeri Raden Intan Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24042/nekj9g80

Abstract

This study examines the dynamic relationship between natural capital, basic infrastructure, and regional economic growth in Indonesia during the post-pandemic period (2020–2024). Economic recovery following COVID-19 highlights the need to balance growth with environmental sustainability within a green economy framework. Natural capital is proxied by the Environmental Quality Index and CO₂ emissions from forest and land fires, while basic infrastructure is represented by access to clean water, roads, and electricity. Using panel data from 32 provinces, this study applies a Vector Autoregression (VAR) model, complemented by Impulse Response Function (IRF) and Variance Decomposition (VD) to capture dynamic interactions and responses to shocks. The results show that environmental quality and CO₂ emissions generate negative and persistent responses in regional economic growth, indicating the presence of a long-term trade-off between environmental conditions and economic output. Basic infrastructure also exhibits predominantly negative responses to shocks, particularly for electricity and roads, while clean water shows short-term positive but weak long-term effects. Variance decomposition results reveal that electricity access is the most dominant factor in explaining Gross Regional Domestic Product volatility. Overall, the relationship between environment, infrastructure, and growth is dynamic and highly context dependent, reflecting both structural constraints and policy inefficiency.
The COMPARATIVE STUDY ON DEVELOPMENT INEQUALITY WEST JAVA USING WILLIAMSON INDEX PRATIWI, RESI; Try Waluyo, Adiet; Indrayanti, Wiwin; Purwaningsih, Fita
Salam (Islamic Economics Journal) Vol. 8 No. 2 (2026): June 2026
Publisher : Universitas Islam Negeri Raden Intan Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24042/hsn33110

Abstract

This study examines the magnitude of development inequality across 27 districts and municipalities in West Java during the period 2015–2024, employing the Williamson Index as the primary analytical tool. Utilizing a descriptive qualitative approach, the research assesses both macro-level disparities and region-specific characteristics. The findings indicate an average inequality index of 0.7180, categorized as high. The highest level of inequality was observed in 2020 (0.7462), while the lowest was recorded in 2019 (0.6902). Comparative analysis reveals that regencies experience greater average inequality (0.7548) than municipalities (0.6633), with the widest gap of 0.1547 occurring in 2020. This divergence highlights how limited access to infrastructure and public services in regencies intensifies developmental imbalances. Moreover, fluctuating economic growth reaching its lowest point in a decade in 2020 illustrates that expansion alone does not necessarily reduce inequality. Over the past decade, West Java has remained unable to transition into the moderate or low inequality categories. Consequently, development inequality persists as a critical structural challenge, requiring urgent policy prioritization to foster more equitable regional progress and improve the distribution of services across the province.
Co-Authors Choirunnisa, Luthfi Indrayanti, Wiwin Pratiwi, Resi Purwaningsih, Fita