Jurnal Ekonomi Indonesia
Vol 15 No 2 (2026): Agustus 2026

Applying the resource circularity dimensional index to Sumatra’s national strategic projects

Laurensius Farel Dwi Putranto (Bank Central Asia)
Jovi Dacanay (University of Asia and The Pasifics)
Jonathan Ersten Herawan (Universitas Katolik Indonesia Atmajaya Jakarta)
Matthew Kartawinata (Universitas Atma Jaya Yogyakarta)



Article Info

Publish Date
31 Aug 2026

Abstract

Purpose — This study examines the role of coal and water resource circularity in supporting industrial electricity distribution and evaluates the broader economic impacts of National Strategic Projects (PSN) in Sumatra. Method — Using panel data from seven Sumatra provinces for 2011–2021, the study applies Fixed Effect EGLS estimation using the Coal Circularity Dimension Index (CCDI) and Water Circularity Dimension Index (WCDI), complemented by Interregional Input-Output (IRIO) analysis. Findings — Coal circularity, water circularity, and PLTU-generated electricity positively and significantly affect industrial electricity distribution. IRIO results also indicate stronger manufacturing linkages, household income, and employment, although weaker effects remain in water supply, waste management, recycling, and related sectors. Implications — Resource circularity can strengthen the economic benefits of infrastructure development, but greater integration of environmental sectors is required to improve the sustainability of implementation of PSN. Originality — This study integrates resource circularity indices with panel-data and IRIO analysis to assess both provincial resource efficiency and interregional economic impacts of PSN development in Sumatra.

Copyrights © 2026






Journal Info

Abbrev

isei

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Indonesia is a journal published by Ikatan Sarjana Ekonomi Indonesia (ISEI) consists of academic articles on various subject areas including monetary and macroprudential regulation, finance and banking system, international economics, development economics, environmental and natural ...