Abstract

Sustainable development has been the main agenda for Indonesia’s development at both the national and regional levels. Along with laws concerning the national development plan and regional development that mandate a sustainable development framework, the government has issued President Regulation No. 59/2017 on the implementation of sustainable development goals. The issuance of these recent regulatory frameworks indicates that sustainable development should be taken seriously in development processes. Nevertheless, several factors affect the achievement of sustainable development. This paper investigates how economic, social, and environmental factors could be integrated into regional sustainable development indicators using a new composite index. The index is calculated based on a simple formula that could be useful for practical implementation at the policy level. Three measures of indices are developed: arithmetic, geometric, and entropy-based. The indices are aggregated to be used for comparison purposes among regions in terms of their sustainability performance. Lessons learned are then drawn for policy analysis and several recommendations are provided to address challenges in the implementation stages.

Highlights

  • Sustainability issues are ubiquitous in development agendas at the global and national levels

  • As stated by Nijkamp and Ouwersloot [3], implementing a sustainable development agenda at the regional level is more operational than implementing it at the national level, since the scope of a region is more manageable

  • If we look at the last indicator for the regional sustainable development index (RSDI), West Java has the highest score followed by Aceh and East Kalimantan

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Summary

Introduction

Sustainability issues are ubiquitous in development agendas at the global and national levels. The available existing methods of measuring RSD are too complex to be implemented in developing countries such as Indonesia due to variations in data availability Given these gaps, there is an urgent need to develop a simple composite method that can be used and implemented to assess the state of the sustainable level of regional development. In Indonesia, other indicators such as poverty, inequality, and unemployment are considered very important indicators of RSD Such indicators are often used to assess the performance of regional authorities at the national level. This paper attempts to fill this gap by developing a simple composite index of sustainable development that accommodates general socio-economic and environmental dimensions such as economic growth, HDI, and EQI, and incorporates important indicators considered to be key performance indicators of the regions (e.g., poverty and inequality). The paper differs from previous measurements of RSD indicators in Indonesia such as Bakri, Rustiadi, Fauzi, and Adiwibowo [7], as by the construction of the composite indicator, three different approaches are used to develop an aggregate indicator

Literature Review
Methodology
Scores and Rank of the Regional Sustainable Development Index
Findings
Sensitivity Analysis
Full Text
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