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All Journal JURNAL ILMU SOSIAL AKADEMIK: Jurnal Mahasiswa Ekonomi & Bisnis Jurnal Terapan Pemerintahan Minangkabau Pattimura Proceeding : Conference of Science and Technology Economic Reviews Journal Journal of Artificial Intelligence and Digital Business JEKP (Jurnal Ekonomi dan Keuangan Publik) Riwayat: Educational Journal of History and Humanities Jurnal Ekonomi, Manajemen, Akuntansi
Arina Romarina, Arina
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Agriculture, Biological Sciences & Forestry Humanities Astronomy Biochemistry, Genetics & Molecular Biology Chemical Engineering, Chemistry & Bioengineering Chemistry Civil Engineering, Building, Construction & Architecture Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Electrical & Electronics Engineering Energy Engineering Environmental Science Industrial & Manufacturing Engineering Materials Science & Nanotechnology Mathematics Physics Social Sciences

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Determinants of Regional Economic Growth in Java Island: an Analysis of Capital Expenditure, General Allocation Funds, and Labor Using a Fixed Effect Model (2020–2024) Ramadhan, Muhammad Daffarezel; Ahmad, Rifat; Mualim, Wildan Maulana Assani; Kayame, Markus; Romarina, Arina
EKOMA : Jurnal Ekonomi, Manajemen, Akuntansi Vol. 5 No. 2: Januari 2026
Publisher : CV. Ulil Albab Corp

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56799/ekoma.v5i2.13522

Abstract

This study examines the impact of regional capital expenditure, General Allocation Funds (DAU), and labor on real per capita Gross Regional Domestic Product (GRDP) growth across 118 regencies and cities in Java Island from 2020 to 2024. Using a Fixed Effect Model (FEM) with clustered robust standard errors, the balanced panel dataset includes 590 observations from six provinces: Banten, DKI Jakarta, West Java, Central Java, Yogyakarta Special Region, and East Java. The findings show that capital expenditure per capita has a significant positive elasticity of 0.247 (p < 0.001), increasing to a cumulative 0.297 when including a one-year lag, indicating sustained effects of public investment. DAU per capita exhibits a positive but statistically insignificant elasticity of 0.089 (p = 0.145), suggesting potential flypaper effects or indirect influence through capital spending. Labor emerges as the strongest driver of growth, with an elasticity of 0.654 (p < 0.001), which is 2.65 times larger than the impact of capital expenditure. Diagnostic tests validate the model, showing corrected heteroskedasticity, marginal autocorrelation, low multicollinearity (maximum VIF = 3.45), and approximately normal residuals. The results highlight that while public infrastructure investment remains important, a skilled and productive labor force is the most critical determinant of regional growth. Policy recommendations include increasing central government allocations for productive infrastructure, enhancing local government human capital development and capital spending quality, and adopting multi-year evaluation frameworks to capture long-term infrastructure benefits. Future research should explore DAU mediation pathways and spatial spillover effects across jurisdictions.
Recursive Economy and Policy Innovation in Indonesia’s Post-Resource Economy Romarina, Arina; Ardieansyah, Ardieansyah; Utama, Lalu Satria; Nalien, Elvira Mulya; Putra, Bima Eka; Dida, Marimbi Liebe Na’illah; Makatara, Biva Aditya Yuda; Azhari, Luthfi
Pattimura Proceeding 2026: Proceeding of the 3rd International Conference of International Conference on Business and Eco
Publisher : Pattimura University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/pcst.2026.iconbe.p110-128

Abstract

Indonesia’s economy has long relied on non-renewable natural resources, which are now depleting, posing risks to long-term economic stability. The transition to a recursive economy—where resources are continuously reused and innovation drives sustainability—is critical. However, the role of policy innovation in facilitating this shift remains underexplored, particularly in integrating green economy principles, fiscal governance, and Just Energy Transition (JET) frameworks. This study examines how innovative policies can accelerate Indonesia’s transition to a recursive, post-resource economy. It fills a gap in literature by linking green government initiatives (e.g., fiscal incentives, R&D capacity) with economic resilience, while incorporating JET as a key variable. The novelty lies in synthesizing governance, technology, and diversification strategies into a unified policy model for sustainable transition. A Systematic Literature Review (SLR) is employed, analyzing peer-reviewed articles, government reports, and international case studies (2010–2025) on green economy transitions. Data is thematically coded to identify policy patterns, technological drivers, and institutional barriers. Findings reveal that: (1) Fiscal policies (e.g., carbon taxes, green subsidies) significantly boost renewable energy adoption; (2) Strong R&D investment correlates with faster industrial diversification; (3) JET-aligned governance enhances equity in transition outcomes. However, bureaucratic fragmentation and short-term economic priorities hinder progress. To achieve a recursive economy, Indonesia must: (1) Integrate green fiscal policies with JET commitments; (2) Strengthen cross-sectoral R&D collaboration; (3) Institutionalize metrics for long-term resilience. Recommendations include piloting circular industrial zones and aligning regional governance with national green targets.
Co-Authors Adyatma Prasetya, Raka Ahmad, Rifat Akili, Rizki Fauzi H. Ambarwati, Nursela Hanifah Ardieansya, Ardieansya Arrasya, Adhimas Krisnaya Aulia Maharani, Sri Azhari, Luthfi Bancin, Rafael Perdana Cristian B Devanta, Muhammad Atha Dida, Marimbi Liebe Na'illah Dida, Marimbi Liebe Na’illah Fachriansyah, Muhammad Farhan Firdaus, Farhan Jaya, I Nyoman adi Putra Johannes, Ayu Widowati Kayame, Markus Lutfi, Alief Makatara, Biva Aditya Yuda Manumpil, Precillia Mualim, Wildan Maulana Assani Muhammad Farhan Muhammad Taufiqurrahman, Muhammad NALIEN, ELVIRA MULYA Napitupulu, Nicholas Agustinus Narazaki, Najwa Syawalia Putra, Bima Eka Putri, Syifa Say Ramadhan, Muhammad Daffarezel Sinurat, Marja Syafitri, Livia Dinda Teken, I Ketut Aditya Tumpak Tua Sirait, Yosia Utama, Lalu Satria Wahyudi, Kadek Prawira