Journal of Economics Research and Policy Studies

Ekspor teknologi tinggi, PMA dan pengendalian korupsi dalam dinamika kompleksitas ekonomi Indonesia

Rona Hinirim Gultom, Joko Suharianto — Thu, 18 Jun 2026 00:00:00 +0700

This research explores the determinants shaping Indonesia's economic complexity index between 1998 and 2024, specifically examining three critical variables: technologically advanced product exports, incoming foreign capital investments, and governmental anti-corruption measures. Employing a quantitative analytical framework, the study utilizes secondary time-series data analyzed through the Error Correction Model methodology, enabling distinction between immediate and sustained economic dynamics. Empirical findings reveal nuanced patterns across different temporal horizons. Technologically sophisticated exports demonstrate statistically insignificant immediate effects but emerge as robust positive contributors over extended periods. Foreign capital inflows, conversely, exhibit no meaningful statistical association with the complexity index across both short-term and long-term frameworks. Anti-corruption governance initiatives consistently prove their significance, displaying positive statistical relationships regardless of temporal scope. The collective analytical power of these three determinants demonstrates substantial explanatory capacity, jointly accounting for significant variations in Indonesia's economic complexity measurement across both analytical timeframes. These results underscore the differential temporal impacts of technological advancement, capital mobility, and institutional quality on economic sophistication within developing economies.

Analisisi perbedaan abnormal return dan trading volume terhadap pergantian menteri keuangan activity: Studi peristiwa pada saham perbankan dan energi

Sulistio Murti Mulyono, Tita Nurvita — Thu, 02 Jul 2026 00:00:00 +0700

Political events, particularly those related to changes in strategic economic positions, often attract investor attention due to their potential to influence economic stability and the direction of a country’s policy. The replacement of the Minister of Finance, as the primary authority in fiscal policy, can trigger market reactions reflected in stock price movements and trading activity. Previous studies have shown that political events and government policies can elicit significant market responses, including abnormal returns and changes in trading volume. In this context, this study analyzes the reaction of the Indonesian capital market to the announcement of the replacement of the Minister of Finance on September 8, 2025, focusing on stocks in the banking and energy sectors. This study employs a quantitative approach using an event study method with an observation window of 31 trading days, consisting of 15 days before, 1 day during, and 15 days after the event, using daily stock prices and trading volume data. The analysis compares conditions before and after the event using nonparametric statistical methods. The results indicate that there is no significant difference in abnormal returns between the two sectors; however, the banking sector shows a significant increase in trading volume. These findings suggest that the market responds more to political events through changes in trading activity rather than abnormal returns.

Analisis struktur ekonomi daerah berbasis pertambangan: indikasi enclave economy di Kabupaten Sumbawa Barat

Faizatul Amala, Aheruddin Aheruddin — Thu, 02 Jul 2026 00:00:00 +0700

West Sumbawa Regency has an economic structure that is highly dependent on the mining sector, with an average contribution of 65–82% to the GRDP during the 2010–2023 period. This study aims to identify base sectors, analyze regional competitiveness, examine indications of an enclave economy, and determine potential sectors for post-mining economic diversification. The method used is a quantitative descriptive-analytical approach by utilizing secondary data of sectoral GRDP for 2010–2023. The analysis was conducted using Location Quotient (LQ), Shift-Share, Esteban-Marquillas, Overlay Analysis, and Klassen Typology. The results show that the mining sector is the main base sector with an LQ value of 4.67. Shift-Share analysis indicates that the construction, agriculture, and transportation sectors have relatively high competitive advantages. Meanwhile, Esteban-Marquillas' analysis shows that the mining sector is in a decline phase characterized by negative Competitive Effect and Allocation Effect values. Klassen Typology shows that there are no sectors in Quadrant I, thus reflecting weak economic diversification. These findings indicate strong enclave economy characteristics with still low sectoral linkages to regional economic transformation.

Pengaruh strategi kanal digital terhadap kinerja UMKM e-commerce di Indonesia: Analisis regresi logistik

Gilang Aldi Satria, Nur Andriyani — Thu, 02 Jul 2026 00:00:00 +0700

This study aims to analyze the determinants of e-commerce MSME performance in Indonesia by emphasizing the role of digital channel strategy, internal business capacity, and geographical location factors. The study uses cross-sectional secondary data from the 2023 E-commerce Survey conducted by Statistics Indonesia, covering 35,543 e-commerce MSMEs. Binary logistic regression was employed to examine the effects of marketplace usage, digital capability, information technology training, education, Java location, and the interaction between marketplace usage and location on the probability of increased business income. The results show that marketplace usage has no significant effect on the probability of improved business performance. In contrast, digital capability, information technology training, and education have positive and significant effects on the probability of increased business income. Business location in Java negatively affects the probability of performance improvement. Furthermore, the interaction between marketplace usage and Java location has a significant negative effect, indicating that the benefits of marketplace utilization in Java are lower than outside Java due to higher digital market competition. These findings suggest that the performance improvement of digital MSMEs is determined more by the internal capacity of business actors than by the type of digital channel used.

Circular economy approach: A sustainable business model in transforming farmers’ livelihoods

Sat, 18 Jul 2026 00:00:00 +0700

The transition toward a circular economy in agriculture is essential for improving resource efficiency, reducing waste, and strengthening farmers’ livelihoods. This study aims to formulate a sustainable business model based on a circular economy approach to support the transformation of farmers’ livelihoods. A qualitative descriptive case study was conducted using interviews, focus group discussions, field observations, and secondary data. The data were analyzed using SWOT, IFAS–EFAS, and TOWS matrices to identify internal and external strategic factors. The IFAS results show that strengths exceed weaknesses, with a difference of 0.415, while the EFAS results indicate that opportunities exceed threats, with a difference of 0.414. These findings place the farmers’ business position in the aggressive or SO quadrant. The key strategic insight is that farmers should prioritize market expansion for organic products, technology adoption, product differentiation, stronger partnerships, and research collaboration while gradually improving post-harvest processing, packaging, human resource regeneration, and access to financing. A circular economy-based sustainable business model is feasible for transforming farmers’ livelihoods by improving cost efficiency, product quality, supply stability, market access, and business resilience.

Digital financial innovation and MSMES’ sustainable performance in developing countries: A prisma-based systematic review

Eka Yuliyanti, Anis Turmudhi, Tri Sumiyanti, Azis Nur Rosyid, Zati Rizka Fadhila — Wed, 22 Jul 2026 00:00:00 +0700

MSMEs play a vital role in economic growth and job creation in developing countries, yet they still face numerous challenges that can be addressed through digital financial innovation, although evidence on their impact on sustainable performance remains fragmented and not yet comprehensively integrated. This study presents a PRISMA-based systematic literature review of 40 studies retrieved from Web of Science and Scopus (2020–2025). The selected studies were synthesized using thematic content analysis to identify dominant theoretical foundations, methodological approaches, and contextual factors. The findings show that digital financial innovation improves MSME performance through enhanced financial inclusion, operational efficiency, and business resilience. However, the magnitude of these effects varies across countries due to differences in digital infrastructure, regulatory environments, and digital literacy levels. Cross-sectional designs dominate the literature, while longitudinal evidence remains limited. Overall, institutional and infrastructural readiness is a key determinant of the effectiveness of digital financial innovation in supporting MSME sustainability.

Tracing the economic valuation of Mount Merbabu National Park: Benefit transfer method

Fri, 24 Jul 2026 00:00:00 +0700

Natural resource management problems occur because the value of environmental services is often ignored compared to economic commodities, thus increasing pressure and degradation on the National Park forest area. This study analyzes the economic valuation of Mount Merbabu National Park to determine its estimated Total Economic Value (TEV), comprising direct use value (timber, non-timber products, water consumption), indirect use value (soil and water conservation, carbon sequestration, flood prevention, water transportation, and biodiversity), and non use value (option and existence value) as a quantitative basis for sustainability planning. The novelty of this study lies in the first application of the benefit transfer method to Mount Merbabu National Park, transferring reference values from the Food and Agriculture Organization (2009) report on Indonesian Conservation Forests by adjusting for an average inflation rate of 5.28% over the 23 years (2002–2025) and scaling to the park’s specific area of 5,820.49 ha. The findings estimate the 2025 economic value of the park at 82,894.81 US$/ha. Notably, Use Value dominates this figure at 77,382.23 US$ / ha, driven primarily by water consumption (32,795.54 US$/ha) and flood prevention (16,383.93 US$/ha), highlighting the vital role of direct and indirect ecological functions for the surrounding community.

Ketimpangan pendapatan antarwilayah di Jawa Timur: Peran pertumbuhan ekonomi, belanja daerah, IPM, dan upah minimum

Ariyani Nurul Fadilah, Marseto Marseto — Mon, 27 Jul 2026 00:00:00 +0700

Income inequality between regions in East Java Province remains an obstacle to equitable development even though economic growth continues to increase, indicating that economic progress is not evenly distributed across the region. The present study examined the extent to which economic growth, regional fiscal expenditure, the Human Development Index, and district-level minimum wages influence income inequality across regencies and municipalities in East Java Province. Income inequality was measured using the Williamson Index. The study employed a quantitative approach with a panel data regression method based on balanced panel data covering 38 districts and cities during the 2020–2024 period, resulting in 190 observations. Empirical results revealed that economic growth and minimum wage both exerted a statistically significant positive influence on income inequality. In contrast, greater allocation of regional fiscal expenditure and improvements in human development were found to serve as effective mechanisms in narrowing interregional income disparities within East Java Province.

Macroeconomic policy and stock market dynamics in Iraqi commercial banks: Evidence from a PLS-SEM approach (2010–2025)

Qasim Hameed Naser — Wed, 29 Jul 2026 00:00:00 +0700

The connection between macroeconomic policy and stock market dynamics of Iraqi private commercial banks is a gap in the literature which has traditionally neglected banking sectors in rentier economies. The oil-dependent economy in Iraq is a great place to look into how macroeconomic conditions influence financial markets. We take annual data for banks listed on the Iraq Stock Exchange for 2010-2025 and use the stock performance indicators to measure the influence of the macroeconomy as the dependent variable. Macroeconomic policy is modeled as a composite latent variable including M2 (money supply), inflation, and oil prices. The study uses Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS and SPSS to test direct and indirect relationships. Higher liquidity and oil prices enhance banking stock performance, while inflation weakens these effects. It can be concluded that macroeconomic policy has an impact on stock markets mainly in terms of liquidity and confidence in the market by investors. The authors also highlight that macroeconomic indicators can be used as a tool of information for investors and policymakers in rentier economies.

Bridging the gap in islamic finance for climate action: A bibliometric analysis

Laela Rizki Fauzia, Ariyanto Adhi Nugroho — Fri, 31 Jul 2026 00:00:00 +0700

Climate change is one of the most pressing challenges in contemporary global development, necessitating large-scale, sustained financing for both mitigation and adaptation. In this context, Islamic finance, grounded in the principles of justice, transparency, and sustainability, offers a distinctive normative and operational framework to support climate action. However, the contribution of Islamic finance to climate-related financing remains relatively limited, constrained by structural and operational barriers at both national and global levels, including regulatory fragmentation, limited standardization, and underdeveloped green financial instruments. This study employs bibliometric analysis to map the development of research connecting Islamic finance with global climate action. The data were drawn from 73 peer-reviewed documents retrieved from the Scopus database spanning the period 2000 to early 2026. The analysis identified five major thematic clusters and three distinct phases of research development, namely a scientific and environmental foundation phase (2014–2017), a socio-religious integration phase (2018–2020), and a strategic financial policy phase (2021–present). Academic attention has progressively shifted from environmental pollution measurement toward Islamic financial instruments as climate solutions, yet a significant gap remains in integrating these instruments with technical environmental science literature.

Promosi pariwisata budaya dan ekowisata di wilayah perbatasan: Analisis SWOT dan strategi pengembangan di Kabupaten Malaka

Odilia Muti, Maria Imakulata Pongge, Marius Masri — Fri, 31 Jul 2026 00:00:00 +0700

This study examined the promotion of cultural tourism and ecotourism in Malaka Regency, a border area between Indonesia and Timor-Leste. The main problems identified were suboptimal destination promotion, limited facilities, low use of digital media, and weak integration between cultural and natural tourism potential. This study employed a qualitative descriptive approach using observation, interviews, focus group discussions, and documentation. The data were analyzed using a SWOT matrix to identify the strengths, weaknesses, opportunities, and challenges of tourism promotion. The findings showed that Malaka Regency had strong potential in Likurai and Bidu traditional dances, woven textiles, traditional houses, Motadikin Beach, Abudenok Beach, and community involvement. The main weaknesses were limited accessibility, inadequate facilities, cleanliness issues, budget constraints, and limited human resource capacity. Development opportunities emerged through digital promotion, cultural festivals, and integrated cultural-ecotourism packages. The main challenges involved competition with other destinations, climate change, and uneven public awareness. This study concluded that tourism promotion should integrate cultural and natural attractions through community, government, and digital media support.

Dari wisata bahari menuju ekowisata berkelanjutan: Valuasi ekonomi Pantai Ngudel melalui pendekatan CVM dan TCM

Saifudin Zuhri, Muhammad Adi Adrian — Fri, 31 Jul 2026 00:00:00 +0700

Ngudel Beach in Sindurejo Village, Gedangan District, Malang Regency, holds significant potential for development as an ecotourism area; however, it still faces limitations regarding facilities, low community involvement, and a lack of information on the area's economic value. This study aims to analyze the baseline state of community participation and estimate the economic value of Ngudel Beach using the Contingent Valuation Method (CVM) and the Travel Cost Method (TCM). Primary data were obtained through a survey of 253 tourists using purposive sampling between February and June 2026. The results indicate that 93% of respondents were willing to pay an additional fee (ecotourism fee), with an average willingness-to-pay (WTP) of IDR 13,000 per person; consequently, the potential economic value based on CVM is estimated at IDR 2.555 billion per year. TCM analysis revealed an average travel cost of IDR 727,016 per person per visit, with a total potential economic value reaching IDR 46.54 billion per year. These findings demonstrate a positive economic preference among tourists for developing Ngudel Beach into a sustainable ecotourism area, as well as the importance of improving facilities and strengthening community participation in the area's management.

Analisis faktor-faktor yang mempengaruhi keberlanjutan usahatani kentang di Desa Grogol, Kecamatan Pejawaran, Kabupaten Banjarnegara

Fidiana Zulfah, Sodik Dwi Purnomo, Bagus Adhitya — Fri, 31 Jul 2026 00:00:00 +0700

The success of a potato farming business is crucial and necessary for maintaining, improving, or developing potato farming, as well as for its future sustainability. Potato farming in Grogol Village, Pejawaran District, Banjarnegara Regency, is an important agricultural sector that supports the economy of the highland community. The area in Grogol Village has agro-climatic conditions that are very supportive for cultivation, especially potatoes. The purpose of this study was to analyze the factors influencing the sustainability of potato farming. This research method used a survey with a quantitative approach. The research sample consisted of 93 farmers and used a purposive sampling technique, and the analysis model used multiple linear regression. The results of this study explain that the variables of income, labor, and experience have a positive and significant effect. Meanwhile, the variables of land area, extension, age, and education have a negative and significant effect. Therefore, potato farmers must be able to keep up with the development of new agricultural technologies and always access agricultural information from extension workers to ensure the sustainability of their farming business.

Model ekonomi sirkular rumah tangga berbasis P2K (perbarui dan pikirkan kembali) untuk ketahanan ekonomi keluarga

Andika Rendra Bimantara, Fahmilia Rahmanita, Najwa Syifa Naurah — Sun, 30 Aug 2026 00:00:00 +0700

The circular economy is a sustainable development approach that emphasizes resource optimization through the principles of reducing, reusing, recycling, replacing, and repairing. This study aimed to analyze the implementation model of a household-based circular economy through the P2K (Perbarui dan Pikirkan Kembali) concept as a strategy for creating economic value and family resilience. The study used descriptive qualitative research with a literature review approach. The results showed that households played a strategic role in reducing waste while creating recycling-based business opportunities. P2K implementation was carried out through separating organic and inorganic waste and processing it into compost, biogas, and craft products with saleable value. This model not only reduced waste volume but also encouraged a transformation towards more responsible consumption and production patterns. Thus, a household-based circular economy had the potential to become the foundation for strengthening an adaptive, sustainable, and relevant microeconomy in the context of digital business transformation.

Evaluasi kebijakan retribusi parkir dalam meningkatkan pendapatan asli daerah di Kota Palu

Irma Suriyani — Sun, 30 Aug 2026 00:00:00 +0700

This study aims to evaluate the parking retribution policy in increasing local own-source revenue in Palu City. The research employs a qualitative, descriptive approach. Data were collected through interviews, observations, and documentation from informants in the Department of Transportation, the Regional Revenue Agency, and parking service users. Data analysis used Miles and Huberman's interactive model, while policy evaluation applied William N. Dunn's criteria, including effectiveness, efficiency, adequacy, equity, responsiveness, and appropriateness. The findings reveal that the parking retribution policy has not increased local own-source revenue optimally. The main issue lies in weak policy implementation, as indicated by revenue leakage, the prevalence of illegal parking practices, tariff inconsistencies, and low levels of supervision and compliance among implementers. These conditions reduce policy effectiveness and also affect efficiency, adequacy, equity, and responsiveness. Conceptually, the parking retribution policy is an appropriate instrument for increasing local revenue; however, weaknesses in its implementation hinder the achievement of its intended objectives. Therefore, strengthening supervision, reorganizing parking locations, and developing a more transparent and accountable management system are necessary to optimize parking retribution's contribution to local revenue.

Model pendayagunaan freelancer milenial berbasis potensi lokal dalam ekosistem ekonomi kreatif

Febyola Mercylia Vagansha, Dendy Setyawan, Kiky Asmara — Sun, 30 Aug 2026 00:00:00 +0700

This study aims to analyze the factors influencing the absorption and equitable distribution of millennial freelancers in the creative economy sector, based on local potential, and to understand how these factors interact to shape an inclusive economic ecosystem. This study uses a qualitative approach through a systematic literature review of scientific articles from 2020 to 2025, purposively selected for topic relevance. Data collection involved documentary analysis, and data analysis used a thematic approach. The results indicate that the absorption and equitable distribution of millennial freelancers are influenced by five key factors: human resource development, utilization of local potential, economic digitalization, policy support, and creative business networks, which collectively form an integrated creative economic ecosystem. Human resource development serves as a key factor in enhancing capacity and competitiveness, while the utilization of local potential strengthens product identity and drives regional economic distribution. Digitalization expands market access but also creates new disparities, while policy support and creative business networks reinforce the sector’s sustainability.

Perbandingan stablecoin dan retail CBDC dalam pembayaran ritel: Systematic literature review berbasis PRISMA 2020 dan implikasi kebijakan untuk Indonesia

Umi Suryani , Elvin Laird, Alessandro Teza Tjahyono — Sun, 30 Aug 2026 00:00:00 +0700

The rise of stablecoins and retail CBDCs has intensified debate over their roles in retail payment systems. This systematic literature review compares the drivers and barriers to stablecoin and CBDC adoption, examines their competitive and complementary dimensions, and evaluates their relationship with fast payment systems, financial stability, and policy design, particularly in Indonesia’s Digital Rupiah agenda. Following PRISMA 2020 guidelines, we reviewed literature from Scopus, Web of Science, ScienceDirect, SSRN/arXiv, and repositories of the BIS, IMF, World Bank, and central banks from 2017–2025. After screening and quality appraisal, ten studies were synthesized. Findings indicate that stablecoins provide cost efficiency, settlement speed, interoperability, and cross-border payment advantages, but raise concerns regarding reserves, value stability, consumer protection, AML/CFT, and monetary sovereignty. Retail CBDCs offer trust, legal certainty, and policy integration, although they must deliver added value beyond fast payment systems while addressing privacy and disintermediation risks. The study concludes that both are competitive and complementary in retail payments.

Segmentasi pasar dan dominasi volatilitas idiosinkratik: Analisis spillover antara pasar mata uang kripto global dan Indonesia

Ilham Maulana, M. Boy Singgih Gitayuda — Sun, 30 Aug 2026 00:00:00 +0700

Although the digital asset market is often assumed to be globally integrated without barriers, this study provides empirical evidence of market segmentation in Indonesia. This study analyzes volatility transmission and the degree of integration between the global market (USD) and the domestic market (IDR) for three large-cap crypto assets: Bitcoin, Ethereum, and Ripple. Using daily closing price data and a Vector Autoregression (VAR) framework, this study applies Granger Causality tests, Impulse Response Functions (IRF), and Forecast Error Variance Decomposition (FEVD). The Johansen cointegration test shows no long-term equilibrium relationship between domestic and global prices, indicating the independence of the local market. The main findings from the variance decomposition reveal the dominance of idiosyncratic factors: more than 98% of volatility in the Indonesian market is explained by internal shocks. In comparison, the spillover contribution from global markets is minimal (< 2%). These conclusions confirm that the Indonesian crypto market operates as a distinct market segment driven by local investor sentiment and domestic market frictions.

Access to improved sanitation and health expenditure in Indonesia: An empirical analysis

Adrian Chrisnahutama — Sun, 30 Aug 2026 00:00:00 +0700

Health expenditure remains one of the main determinants of financial burdens for households in developing countries, including Indonesia. While previous studies have documented the health benefits of improved sanitation, there is still limited evidence regarding its economic consequences. Understanding this relationship is crucial for designing effective policies to both improve public health and alleviate financial burden. This study aims to examine the effect of access to improved sanitation on household health expenditure in Indonesia and to investigate whether this effect varies across regions with different levels of infrastructure development. Using the 2019 National Socioeconomic Survey (Susenas), this study finds that access to improved sanitation significantly reduces the likelihood of experiencing health problems, which in turn lowers health expenditure. The effect is substantially larger and statistically significant outside Java-Bali, where baseline sanitation coverage is lower and health risks are higher. Conversely, the effect is insignificant in the rest of Indonesia apart from Java-Bali, suggesting diminishing marginal returns in areas with relatively advanced infrastructure.

Dynamic interactions of local tax revenues in Cirebon Regency: A vector autoregression approach

Aji Priambodo — Mon, 31 Aug 2026 00:00:00 +0700

This research analyzes the dynamic interaction of local tax revenue sources in Cirebon Regency to understand how these components are interdependent within the context of fiscal decentralization. The study used a quantitative approach and monthly time-series data from January 2021 to December 2024. The variables analyzed included hotel tax, advertisement tax, street lighting tax, and land and building transfer tax. The research employed a vector autoregression model to analyze the relationships without imposing prior structural restrictions. Pre-estimation tests confirmed that all variables were stationary in levels and that the estimated system was stable. The Granger causality test results indicated no statistically significant causal relationships among the tax variables. Furthermore, the forecast error variance decomposition revealed a strong degree of exogeneity, where variations in each tax component were driven primarily by its own innovations rather than exogenous shocks from other taxes. The study concluded that these local revenue sources operated independently in the short run, meaning the collection and performance of one tax did not significantly influence the others.

Kinerja pasar saham ASEAN: Peran makroekonomi dan kualitas institusi

Azlim Azlim, Rizal Ansari, Cut Delsie Hasrina, Yuni Ayu Safitri, Isthafan Najmi — Mon, 31 Aug 2026 00:00:00 +0700

This study analyzes the effects of economic growth, monetary policy, and exchange rates on stock market performance and examines the moderating role of institutional quality in ASEAN countries. This study uses panel data and applies the Panel Autoregressive Distributed Lag (Panel ARDL) approach to identify short-run and long-run relationships. The results show that in both the short and long term, economic growth and the exchange rate have a positive and significant effect on stock market performance. In contrast, monetary policy has a negative and significant effect, with a stronger impact in the long term. Institutional quality significantly moderates these relationships. However, the direction varies across time periods: in the short run, institutional quality amplifies the positive effects of economic growth and the exchange rate while also amplifying the negative effect of monetary policy; in the long run, institutional quality actually weakens the effects of economic growth and monetary policy but continues to amplify the effect of the exchange rate. This study provides policy recommendations to strengthen institutional governance and macroeconomic stability in the ASEAN countries covered in this study to support sustainable stock market growth.

Pengaruh natural resource rents dan trade openness terhadap PDB per kapita Indonesia tahun 1995-2021

Hanifa Fauzia Rahmah, Amin Pujiati, Fauzul Adzim — Mon, 31 Aug 2026 00:00:00 +0700

This study analyzes the effect of total natural resource rents and trade openness on GDP per capita in Indonesia during 1995-2021. Using a quantitative approach with linear regression and classical assumption testing such as normality, heteroscedasticity, multicollinearity, and autocorrelation, the analysis shows that both total natural resource rents and trade openness have a negative effect on GDP per capita. These findings indicate that high dependence on natural resources and trade openness not supported by structural policies can hamper economic growth and reduce public welfare. In addition, the results show that sustainable management of natural resource rents and increased domestic industrial competitiveness are essential for these resources to increase GDP per capita optimally. These findings have strategic implications for policymakers to develop development policies oriented toward economic diversification and strengthening the industrial sector to achieve more inclusive and sustainable economic growth in Indonesia.