Indonesia Sustainability Research Articles

An Exploratory Study on the Artificial Intelligence Practices on the Human Capital Development within Tourism Village Business Sustainability in Indonesia

This exploratory study investigates the role of artificial intelligence (AI) practices in enhancing human capital development and promoting business sustainability within tourism villages in Indonesia. As tourism villages become increasingly significant to Indonesia’s rural economy, the need to foster sustainable business models that can maintain cultural heritage while promoting economic growth has gained attention. AI technologies, including machine learning, data analytics, and automation, present opportunities for improving human capital development by enhancing skill-building, training, and decision-making processes. This study examines how AI tools are being integrated into training programs, recruitment processes, and daily operations of tourism village businesses to support workforce growth, improve service quality, and ensure long-term sustainability. Through qualitative data collected from tourism village stakeholders in Bali and Java, the research explores AI’s impact on local workforce capabilities, productivity, and innovation in tourism-related services. The study finds that AI practices are helping to bridge skill gaps, enhance workforce efficiency, and optimize resource management. However, challenges such as limited access to technology, digital literacy, and the need for infrastructure development hinder broader AI implementation. The paper concludes by proposing recommendations for leveraging AI practices to further strengthen human capital and business sustainability in tourism villages, thus contributing to the sector’s competitive edge in the global market.

Exploring Green Libraries Innovation toward Environmental Sustainability in Indonesia: A Systematic Literature Review

Exploring Green Libraries Innovation toward Environmental Sustainability in Indonesia: A Systematic Literature Review

KEBIJAKAN FORMULATIF TINDAK PIDANA DI BIDANG PERLINDUNGAN MANGROVE BERBASIS KONSERVASI EKOSISTEM PESISIR

Indonesia boasts extensive mangrove forests spanning over three million hectares, yet these are steadily declining due to harmful activities such as deforestation and land degradation. As a shoreside ecosystem, mangroves in seaside zones are also threatened by destructive management practices in coastal areas and on islands. This research analyzes Indonesia’s current criminal (formulative) policy regarding offences against mangrove conservation as part of offshore ecosystems and proposes a sustainable, approach-based formulative policy to promote mangrove sustainability in Indonesia’s coastal zones. This is doctrinal legal research, wherein the proposed legal issues are analyzed using both statutory and conceptual approaches. The findings indicate that the formulative policy regarding offences against mangrove conservation, specifically Article 73 paragraph (1) letter b and paragraph (2) of Law Number 1 of 2014 concerning Amendments to Law Number 27 of 2007 on Management of Coastal Areas and Small Islands, does not align with the sustainability principle that underpins coastal ecosystem conservation, including mangroves. The study highlights the need to amend the policy by explicitly incorporating corporate criminal liability and reconstructing the sentencing framework based on restorative justice and deterrence theory. These changes aim to strengthen criminal law as a last resort (‘ultimum remedium’) for protecting mangrove sustainability and conserving coastal ecosystems.

Sustainable Tourism Observatories Framework at National Tourism Strategic Area Development (KSPN) in Indonesia

This study aims to establish a framework that integrates planning and implementation programs for sustainable tourism development in Indonesia, providing a guide for stakeholders to unify understanding and drive policy agreements. The framework emphasizes concise, transparent, measurable, and adjustable principles for monitoring Sustainable Tourism Development (STD) guidelines. Using methodologies including surveys, case studies, comparative studies, time and motion analysis, and documentation analysis, this research identifies key elements and characteristics of sustainable tourism phenomena. The findings highlight the critical role of stakeholders in monitoring sustainable tourism through periodic reporting processes led by the Sustainable Tourism Observatory (STO). Government bodies, academic institutions, and community stakeholders collaboratively develop sustainable travel destinations, fostering accelerated tourism growth and sustainability in Indonesia.

How do environmental awareness, IT use, and credit access shape the sustainability of Indonesian MSMES?

This study aims to analyze the influence of environmental awareness, information technology (IT) use, and access to credit as moderators on the sustainability of Indonesia’s micro, small, and medium enterprises (MSMEs). Data were obtained through a survey of 1,374 MSMEs. Sampling was carried out using purposive sampling techniques, targeting MSMEs that had been established for more than 3 years and had received loans from financial institutions. The analysis used the ordinary least square (OLS) regression method to evaluate the relationship between the independent variables and MSME sustainability. The results show that environmental awareness and IT use significantly positively affect MSME sustainability. Credit access was also found to have a significant and positive effect. However, the interaction between credit access, environmental awareness, and IT use resulted in a small but significantly negative effect. This suggests that an excessive increase in credit access might reduce the positive impact of environmental awareness and IT use on MSME sustainability. Overall, this study confirms the importance of environmental awareness and information technology in improving MSME sustainability and highlights the need for proper management of credit access. AcknowledgmentAppreciation is given to the Directorate General of Higher Education, Research and Technology, Ministry of Education, Culture, Research and Technology, which has provided a fundamental research grant with contract number 108/E5/PG.02.00.PL/2024. Acknowledgments are also expressed to higher education service institutions (LLDIKTI) Region 6 and the Institute of Research and Community Services (LPPM) Unisnu Jepara Indonesia, which has supported this research.

Exploring the Correlation Between ESG Performance and Firm Value in Indonesia Shariah-Compliant Companies

Corporate Social Responsibilities (CSR) has become essential to contemporary business operations, highlighting a company’s dedication to ethical, social, and environmental obligations. This study examines the relationship between Environmental, Social, and Governance (ESG) scores and the firm value of Indonesia Shariah-compliant companies. The data is attracted from the Refinitiv database, and all the companies in this study have ESG reporting from 2012 to 2022, with a total data collection of 117. The STATA version 16 software was used to analyze the data for the study. This study employed unbalanced panel data regression analysis with two measures as dependent variables ROE and stock price. Independent variables in this study are return on equity (ROE) and stock price, while control variables are firm age, firm size, and leverage. The findings show varied outcomes regarding the impact of ESG initiatives on financial performance. While ESG initiatives were found to have a significant and strong relationship with overall financial performance, the results were divergent for ROE and stock price. The regression model indicates that ESG initiatives negatively influenced ROE, whereas they positively correlated with increases in stock price. The study is based on secondary data from Shariah-compliant companies in Indonesia, including the ESG disclosure for the company’s performance. Policymakers should promote balanced, tailored ESG initiatives with strong reporting standards, encourage long-term value creation, provide sector-specific support, and enhance investor attraction through education and incentives to optimize financial performance and sustainability in Indonesia's Shariah-compliant companies.

Driving sustainability in Indonesia: the importance of corporate citizenship in realizing sustainable development goals

Purpose of the article – Corporate Citizenship (CC) and Sustainable Development Goals (SDGs) are two interrelated and essential concepts to achieve sustainable development by 2030. This topic is particularly interesting and relevant today, where companies are expected to pursue profits and contribute to social and environmental well-being. This study aims to describe the implementation practices of corporate citizenship in supporting the achievement of the Sustainability Development Goals of companies in Indonesia. Research methodology – The research method used is a literature review of journals/articles relevant to the topic. Findings – This study emphasizes the significance of adopting corporate citizenship to aid in accomplishing Indonesia's Sustainable Development Goals. Corporate citizenship significantly impacts employees, business performance, and sustainability. Practical implications – The study recommends incorporating CC principles into business strategies and working with stakeholders to speed up the achievement of the SDGs, bolstered by government policies that endorse CC practices. Companies in Indonesia need to participate in CC to achieve the SDGs and create a more sustainable future. Originality/Value – Exemplary CC implementation has been proven to help various SDGs goals, such as poverty alleviation, improving the quality of education, health, welfare, and action on climate change. The company views the CC program as a strategic investment that positively affects society and the environment while offering benefits like enhanced business performance and improved reputation.

BUSINESS TRAINING IMPLEMENTATION OF MANAGEMENT SYSTEMS IN UMKM IN SOUTH MERUYA VILLAGE, WEST JAKARTA

Micro Small Medium Enterprises (MSME) are sustainable when each enterprise runs their business consistently by means of management system. The business shall continuously seek for a consistent process in developing products or services, low operating costs, on time product or service delivery, meeting its customer's expectations and avoiding environmental pollution. The MSME owners shall improve their knowledge on applicable models and management standards in order to have robust business structure and framework achieving business sustainability. Implementation of management system improve any business resilience responding to market dynamics due to the MSME process businesses are capable of following their customers' needs and expectations. This is possible from the PDCA cycles enabling MSME to have: planned operation (Plan) leading to quick and accurate application (Do) in which any non- conformances are monitored and immediately corrected or even prevented (Check and Act). This includes a capability to carry out operation changes pursuit for matching market dynamic and unavoidable competitions. In summary, the implementation of management system is beneficial to increase MSME's internal adaptability in providing consistent quality of product or service, lower operating costs, timely delivery as well as flexibility to match external turbulence. MSME sustainability in Indonesia, at the end, increasing national economic robustness.

The effect of agricultural policy on sustainability and environmental protection: omnibus law case study

Abstract This study assesses the effects of increased domestic investment in the Agriculture, Hunting, Forestry, and Fisheries sectors on environmental sustainability in Indonesia, particularly after the Omnibus Law was enacted in 2020. Using a descriptive quantitative approach and time series data from the Central Bureau of Statistics, relevant Ministries, legal documents, and previous research, the study examines the relationship between domestic investment and various environmental indicators. These indicators include the area of forest and aquatic conservation, total plantation land, greenhouse gas emission intensity, and energy intensity in agriculture. The analysis reveals that despite a significant rise in investment, there has been no notable impact on environmental sustainability. Forest and aquatic conservation areas have remained stable, and while plantation land has increased, it is unevenly distributed. Additionally, greenhouse gas emissions and energy intensity have shown stability with minor reductions, indicating that sustainable practices have not been effectively implemented. The findings underscore the need for more robust policies to ensure that increased investment also fosters environmental protection and long-term sustainability.

Cultural Sustainability Analysis of 12 Coastal Tourism Destinations in North Jakarta

Maintaining culture so that it remains sustainable is everyone's responsibility, because the identity of a nation can be seen from the culture. This descriptive research aims to analyze the cultural sustainability of 12 coastal tourism destinations in North Jakarta, by assessing the protection of cultural heritage and visits to cultural sites. With a quantitative approach and employing scoring analysis techniques, data were collected through observations and Focus Group Discussions (FGDs) with key informants from the 12 coastal tourism destinations in North Jakarta. The results of this study identified Ancol and Suaka Marga Satwa Area are very sustainable because both destinations have implemented protection of cultural assets and intangible heritage well, otherwise Bahtera Jaya Yacht Club is unsustainable because of poor management and changes in the structure of cultural heritage buildings. It is hoped that this research will be useful for further researchers and stakeholders in making policies related to cultural sustainability in Indonesia, especially North Jakarta.

The Effect of Supplier Collaboration, Transport Efficiency, Technology Adoption, and Market Demand on Distribution Efficiency and Profitability of Pumpkin Seed Supply Chain in Indonesia

This study examines the effects of supplier collaboration, transportation efficiency, technology adoption, and market demand on the distribution efficiency and profitability of the pumpkin seed supply chain in Indonesia. Using a quantitative approach, data were collected from 150 respondents involved in the supply chain, including suppliers, distributors, and logistics providers. The data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The findings reveal that supplier collaboration, transportation efficiency, and technology adoption significantly enhance distribution efficiency, which in turn positively impacts profitability. Market demand was also found to moderate the relationship between distribution efficiency and profitability, particularly during periods of high demand. These findings underscore the importance of fostering collaboration, optimizing transportation, and adopting technology to improve the supply chain’s operational performance and financial outcomes. The study provides valuable insights for practitioners and policymakers aiming to enhance the agricultural supply chain's competitiveness and sustainability in Indonesia.

Cutting-Edge Agricultural Technology for Farmer Self-Reliance: Support and Implementation of Efficient Spraying Equipment

Agriculture plays a crucial role in Indonesia's economy but faces various challenges such as climate change and low productivity. To address these issues, technological innovation is essential. Efficient modern agricultural sprayers are one key innovation that helps farmers apply pesticides and fertilizers more effectively. This study focuses on the support and implementation of efficient sprayers in Bana Village, Teriak District, Bengkayang Regency. Through lectures, discussions, demonstrations, and simulations, farmers are encouraged to understand and adopt this technology. The results show an increase in farmers' knowledge and skills in using the sprayers, as well as improved crop productivity and reduced chemical usage. The participatory approach in this study ensures practical and sustainable solutions, enhancing farmer self-reliance. It is hoped that the implementation of this technology will improve farmer welfare and support agricultural sustainability in Indonesia.

Unveiling the Nexus of Consumer Price Index, Economic Policy Uncertainty, Geopolitical Risks, and Gold Prices on Indonesian Sustainable Stock Market Performance

This study contributes to evaluate capital market performances categorized as sustainable stocks in Indonesia. The aim of the proposed model is to examine the impact of the Consumer Price Index, Economic Policy Uncertainty, Geopolitical Risk, and Global Gold Prices on the SRI-KEHATI Index. The study will cover the study period from January 2017 to December 2022. The ARDL approach is employed to see impacts in both long-term and short-term. The findings indicate that in the short run, the variables Consumer Price Index and Geopolitical Risk have a notable positive impact on the SRI-KEHATI Index, while World Gold Prices have a substantial negative impact. However, the variable Economic Policy Uncertainty does not have a significant effect on the SRI-KEHATI Index. In addition, over an extended period of time, the variables of Economic Policy Uncertainty and Geopolitical Risk exhibit a notable and constructive impact on the SRI-KEHATI Index. Compared to the long-term impact of the Consumer Price Index on Gold Prices is negligible.

Have MSMEs in Indonesia Focused on Business Sustainability? The Influence of Environmental Orientation, Technology Implementation, Green Marketing, and Innovation Capability

The aim of this study is to determine the factors that impact MSMEs' sustainability practices and the degree to which they concentrate on business sustainability in Indonesia. This study used a quantitative research approach and collected survey data from MSMEs in Indonesia operating in various industries totaling 350 samples. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for data analysis to assess the relationship between variables. The study discovered that a focus on the environment, the application of technology, and green marketing greatly improve an organization's capacity for innovation, which in turn has a favorable impact on the sustainability of the firm. MSMEs are more likely to develop and maintain their business practices over time if they invest in green marketing techniques, use cutting-edge technologies, and give priority to environmental issues. In order to attain sustainability, MSMEs should include technology, marketing, and environmental initiatives into their fundamental business operations, according to the research. It is recommended that policymakers provide incentives, subsidies, and training programs to MSMEs in order to encourage the adoption of technology and green marketing. Support like this can encourage sustainable practices throughout the industry and close the digital divide. This study offers insightful information about the combined effects of environmental orientation, technology adoption, and green marketing on MSMEs in Indonesia's capacity for innovation and long-term viability of their businesses. It gives helpful suggestions for boosting MSMEs' sustainability and emphasizes the crucial role that innovation plays in converting these elements into sustainable business practices.

Sustainability of Indonesia's transportation sector energy and resources demand under the low carbon transition strategies

– The transportation sector is Indonesia's largest energy demand sector and has rapidly increased over the last decade, consuming more than 2.4 million TJ in 2022. With most of this energy coming from fossil fuels, the government has set policies to reduce the sector's climate impacts. This study examines the impact of these policies on the future energy demand, the resources needed, and the limiting factors to the implementation. Our results show that the policies can decrease energy demand from the transportation sector, but there will be shifts in the primary energy mix. Coal will be more in demand than gasoline in the future even under the 31 % renewables goal. The demand for critical minerals would also be substantial following the increase in renewables. While Indonesia has one of the largest nickel reserves, it would still require other critical minerals that could threaten Indonesia's energy security. Furthermore, the massive land use required to meet the renewables goals could be a limiting factor in achieving the set goals. This finding serves as valuable information for the policymakers when planning energy and resource supply to meet the emission target.

Smart Green Concrete: Innovation of Concrete Materials from Fly ash Waste and Lapindo Mud Integrated Smart E. crassipes Coir Geotextile to Realize Indonesia's Sustainable Infrastructure

Pariaman City, situated near the Semangko fault and the Indo-Australian plate subduction zone, is highly prone to earthquakes and tsunamis. To address this, the Earthquake Buddy Application (EDY App) was developed as an innovative solution for disaster mitigation. EDY App utilizes Geographic Information Systems (GIS) to provide real-time earthquake vulnerability maps, early warnings, and evacuation route suggestions to Temporary Evacuation Sites (TES). It also offers education on earthquake preparedness and facilitates donations for relief efforts. The application’s main contribution lies in its integration of comprehensive disaster management tools into one platform. By providing critical information during emergencies, the app empowers users to make informed decisions, which can reduce casualties in high-risk areas. The app also encourages community preparedness by offering accessible education on earthquake mitigation. EDY App is designed to create a disaster-resilient society in Pariaman, ensuring that residents are better equipped to respond to natural disasters through real-time alerts and evacuation support, ultimately enhancing local preparedness and reducing the potential impact of future earthquakes.

Analisis Efisiensi Operasional, Manajemen Risiko, dan Pengelolaan Sumber Daya terhadap Keberlanjutan Kinerja Keuangan Perusahaan di Indonesia

This study investigates the effects of Operational Efficiency, Risk Management, and Resource Management on the sustainability of corporate financial performance in Indonesian companies. A quantitative research approach was employed, using data from 170 companies across various industries. The data was analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The findings reveal that all three variables have a significant positive impact on financial sustainability. Operational Efficiency emerged as the most influential factor, followed by Risk Management and Resource Management. These results highlight the importance of an integrated approach to corporate strategy, focusing on improving operational processes, mitigating risks, and optimizing resource allocation to achieve long-term financial stability. The study offers practical insights for managers and policymakers on how to enhance corporate financial sustainability in Indonesia.

Choosing and Evaluating P2P Lending with Value Engineering as a Decision Support System: An Indonesian Case Study

Peer-to-peer (P2P) lending has gained significant traction in the financial landscape, particularly in developing economies such as Indonesia, where access to traditional banking services remains a challenge for many. The aim of this study is to investigate the application of value engineering as a decision support system for choosing and evaluating P2P lending platforms, using Indonesia as a case study. P2P lending is a relatively new service in the digital economy for lending money to individuals through online financial intermediaries, where borrowers and lenders often have no prior relationship. Value engineering, a systematic approach to improving the value of a product or service, can be a valuable tool in the context of P2P lending. Through applying value engineering principles, P2P lending platforms can identify and prioritize the key factors that influence lending decisions, such as risk, return, and data privacy, to enhance the overall value proposition for both borrowers and lenders. Both value engineering and P2P lending are technoeconomic systems that aim to enhance the overall value and efficiency of a system or process, albeit through different approaches. This study presents a comprehensive framework for applying value engineering as a decision support system for P2P lending in Indonesia. The findings reveal that the value engineering index developed in this study effectively differentiates between P2P lending platforms based on their performance. Specifically, platforms with a high-value index were found to offer competitive interest rates, lower fees, and superior risk management, as evidenced by their non-performing loan (NPL) rates. In contrast, platforms with a low-value index were associated with higher NPLs and less favorable terms for stakeholders. These insights provide practical guidance for P2P lending platforms, regulators, and consumers; highlight the importance of a value engineering approach in optimizing platform selection; and enhance the P2P lending ecosystem’s sustainability in Indonesia.

Should the Cash Receipt System (CRS) be Implemented to Optimize Taxes in the Indonesian MSME Sector?

Research Aims: This study aims to analyze the viability of applying a Cash Receipt System (CRS) concept in supervising tax revenue from the MSMEs sector to add the consideration for implementing CRS in Indonesia using the OECD (2015) framework. Design/methodology/approach: This study uses a descriptive qualitative approach in the form of a case study conducted at the Directorate General of Taxes (DGT). The study was carried out by analyzing literature analysis, analyzing taxation data on the MSMEs sector, and analyzing interview results. The data collection method consists of secondary data through literature analysis and primary data through interviews with respondents from the DGT, Regional Revenue Agency, taxpayers in the MSMEs sector, consultants, and related associations. Research Findings: Research shows that CRS policy does not fulfill some OECD (2015) principles, especially Neutrality, Efficiency, and Equity. This research emphasizes the importance of tax education and financial literacy in the MSME sector for Indonesia's sustainability of tax revenues. Theoretical Contribution/Originality: Suggested by the OECD (2017), the study contributes to the body of knowledge regarding the application of the fiscal device to counteract tax evasion in Indonesia. Keywords: Fiscal Device, Cash Receipt, Tax Evasion, MSME

An integrated performance assessment method for SMEs fruit processing sustainability in Indonesia

An integrated performance assessment method for SMEs fruit processing sustainability in Indonesia