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National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

National Income Towards Equity Though Green Economy


(Gini Comparative Analysis of Urban and Rural Ratios)

Ardy Firman Syah


National Research and Innovation Agencies
Email: ardyfirmansyah24@gmail.com
Jalan Jend. Gatot Subroto No.10, Gedung Sasana Widya Sarwono, Lantai 8, Jakarta 12710

Abstract

The start of national financial development gives the government a centre on taking care of the
economy similarly in both country and urban regions. In developing countries, there are many problems
that are often found, one of which is inequality in the distribution of income with rural and urban
income for each person. The approach utilized in this inquiry is subjective with a descriptive analysis.
The examination method utilized could be a writing look and case examination related to the substance
of breaking even with the dissemination of national wage calculate the Gini ratio for each region and
then involves calculating the amount required to calculate the Gini coefficient, which involves the
cumulative proportion of the population and the proportion of income received by that group and the
green economy concept. This consideration demonstrates seven vital steps in a green economy utilizing
macro-regional financial markers, specifically veritable to observing national wage dissemination. This
result depicts concepts of green economy, green development, and green development, essentially
planning to operationalize the linkages of financial, social, and natural columns within feasible
advancement.

Keywords: economic growth, green economy, Urban and rural ratio, Gini ratio
JEL Classification: E22, O15

A. INTRODUCTION production, consumption, and investment


activities that impact employment and increase
Financial disparity or pay dispersion
people's welfare. Economic growth will be more
imbalance could be a worldview that happens
meaningful if it can be enjoyed by all levels of
within the middle of the world community in both
society equally, which is often followed by
created and created nations and is a critical issue
changes in the income structure, especially for
to be considered. Different endeavours are
developing countries. Therefore, every country
required from the government in making
seeks to increase economic development to
arrangements to make strides in community
reduce poverty and unemployment. Two major
financial advancement, as well as increment
problems that are generally faced by developing
people's standard of living through different sorts
countries, including Indonesia, are economic
of endeavours to extend the dispersion of wages
disparities or inequality in income distribution
from different perspectives. Not only in the green
between high-income groups and low-income
economy, Green growth “is about fostering
groups. Also, economic inequality or inequality in
economic growth and development while
income distribution exists between community
ensuring that the natural assets continue to
groups or the number of people below the
provide the resources and the environmental
poverty line (Tulus, 2001). The problem of income
services on which our well-being relies.
inequality is faced by developing countries and
Economic growth reflects the development
developed countries, which cannot be separated
of regional economic activity, which is marked by
from this problem. The difference lies in the
the movement of the regional economy through
proportion or size of the level of inequality that
JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 1
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

occurs and the level of difficulty in overcoming it, Gini coefficient (Gini Ratio) measures how big the
which is influenced by the area and population. gap in the income distribution between residents
Income distribution is the distribution of is. In Indonesia, inequality is still a problem that is
income in society. In the production process, the often faced. The Gini index is a measure of
owners of the factors of production will receive aggregate inequality whose numbers range from
compensation for the factors that contributed to zero (perfect equality) to one (perfect inequality),
the production process. This income distribution where inequality refers to how far the income is
process will occur in a cycle (turnover) of distributed evenly among the people (Damanik et
consumers who must pay the price of goods. al., 2018).
However, at other times, it will be a provider of The track record of data on national
capital factors, labour, natural resources, or skill economic growth and inequality in income
factors so that, at certain times, it will receive a distribution can be seen through the Gini index
share of income and at other times will pay the per province, presented in Table 1 (Tim BPS,
price of goods. In the production process, each 2022).
provider of production factors will receive Table 1 shows that in March 2021, the level
compensation for services as follows: (1) Owners of inequality was 0.384. This figure decreased by
of natural resources in the form of land will 0.001 points compared to September 2020,
receive land rent, (2) Owners of labour factors will 0.385. The number increased by about 0.003
receive work wages, (3) Owners of capital will points compared to March 2020 (0.381). Based
receive capital interest, and (4) Entrepreneur will on the World Bank's measure of inequality, the
receive operating profit. In the 1990s, there was distribution of spending in the bottom 40 per cent
a shift in research from one previously concerned is 17.76 per cent. This explicitly shows that the
with economic growth, the identification of the population's expenditure in March 2021
determinants of economic growth, and the (Semester 1 2021) is in the category of low
convergence in per capita incomes across inequality level. If broken down by region, in
countries to one focused on the analysis of the urban areas, the figure was recorded at 16.81 per
distribution of income, its development over time cent, meaning it belongs to the category of
and the identification of factors determining the moderate inequality. Meanwhile, for rural areas,
distribution of income and the reduction of the figure was recorded at 20.68 per cent,
poverty. This shift is, among other things, a meaning it belongs to the category of low
reflection of the changes in technology and an inequality.
increased awareness of the growing disparity and The initiation of national economic growth
importance of income redistribution and poverty gives the government a focus on handling this
reductions (Heshmati, 2006). matter, especially since economic growth is not
Many problems are often found in only seen from the welfare side but needs to be
developing countries, one of which is inequality in studied through equity. This is essential in taking
income distribution. The problem of income strategic steps for the government to develop the
distribution measures the distance difference in economy equally in rural and urban areas. The
income between one individual and another principle of equal distribution of national income
individual; if this imbalance continues to occur is also one of the indicators of sustainable
between one group and another, then there will economic development in the national scope.
be a problem where economic growth is uneven. According to Permen et al. (Fauzi, 2004),
This inequality in the income distribution is called the considerations that make the economy must
inequality, and in measuring this inequality, the

JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 2
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

Table 1. Gini Ratio Based on Province and Regional


Urban Rural Urban + Rural
Proviince 2020 2021 2020 2021 2020 2021
Smt 1 Smt 2 Smt 1 Smt 2 Smt 1 Smt 2 Smt 1 Smt 2 Smt 1 Smt 2 Smt 1 Smt 2
ACEH 0.360 0.355 0.362 0.357 0.281 0.283 0.275 0.282 0.323 0.319 0.324 0.323
N.SUMATERA 0.338 0.336 0.344 0.339 0.255 0.258 0.250 0.257 0.316 0.314 0.314 0.313
W.SUMATERA 0.323 0.320 0.329 0.327 0.257 0.256 0.254 0.252 0.305 0.301 0.306 0.300
RIAU 0.363 0.359 0.367 0.369 0.273 0.274 0.279 0.276 0.329 0.321 0.326 0.327
JAMBI 0.351 0.346 0.354 0.347 0.287 0.289 0.288 0.284 0.320 0.316 0.321 0.315
S.SUMATERA 0.358 0.352 0.360 0.363 0.308 0.310 0.315 0.314 0.339 0.338 0.341 0.340
BENGKULU 0.378 0.381 0.384 0.381 0.275 0.274 0.264 0.258 0.334 0.323 0.326 0.321
LAMPUNG 0.345 0.342 0.346 0.342 0.298 0.295 0.288 0.288 0.327 0.320 0.323 0.314
KEP.BABEL 0.276 0.271 0.265 0.259 0.220 0.229 0.221 0.215 0.262 0.257 0.256 0.247
KEP. RIAU 0.337 0.335 0.341 0.337 0.260 0.260 0.256 0.253 0.339 0.334 0.343 0.339
DKI JAKARTA 0.399 0.400 0.409 0.411 - - - - 0.399 0.400 0.409 0.411
W. JAVA 0.412 0.409 0.423 0.417 0.325 0.326 0.321 0.324 0.403 0.398 0.412 0.406
C. JAVA 0.385 0.386 0.398 0.393 0.319 0.318 0.325 0.324 0.362 0.359 0.372 0.368
DIY 0.436 0.439 0.448 0.443 0.328 0.329 0.334 0.325 0.434 0.437 0.441 0.436
E.JAVA 0.377 0.373 0.387 0.379 0.316 0.318 0.324 0.319 0.366 0.364 0.374 0.364
BANTEN 0.360 0.361 0.369 0.365 0.296 0.296 0.280 0.278 0.363 0.365 0.365 0.363
BALI 0.372 0.378 0.387 0.379 0.298 0.304 0.301 0.302 0.369 0.369 0.378 0.375
W. NUSA
TENGGARA 0.403 0.405 0.413 0.420 0.337 0.336 0.332 0.331 0.376 0.386 0.381 0.384
E. NUSA
TENGGARA 0.334 0.329 0.327 0.322 0.310 0.311 0.311 0.306 0.354 0.356 0.346 0.339
W.KALIMANTAN 0.335 0.329 0.341 0.337 0.272 0.273 0.267 0.268 0.317 0.325 0.313 0.315
C. KALIMANTAN 0.361 0.357 0.353 0.356 0.289 0.290 0.292 0.284 0.329 0.320 0.323 0.320
S. KALIMANTAN 0.355 0.343 0.359 0.352 0.276 0.277 0.265 0.257 0.332 0.351 0.330 0.325
E. KALIMANTAN 0.333 0.330 0.339 0.337 0.286 0.286 0.288 0.281 0.328 0.335 0.334 0.331
N.KALIMANTAN 0.289 0.285 0.289 0.284 0.279 0.278 0.272 0.264 0.292 0.300 0.292 0.285
N. SULAWESI 0.371 0.367 0.365 0.359 0.344 0.346 0.352 0.347 0.370 0.368 0.365 0.359
C. SULAWESI 0.334 0.334 0.343 0.351 0.295 0.295 0.279 0.278 0.326 0.321 0.316 0.326
S. SULAWESI 0.384 0.384 0.392 0.387 0.356 0.352 0.338 0.334 0.389 0.382 0.382 0.377
N.E SULAWESI 0.404 0.403 0.411 0.402 0.347 0.348 0.347 0.353 0.389 0.388 0.390 0.394
GORONTALO 0.393 0.390 0.398 0.407 0.392 0.391 0.397 0.390 0.408 0.406 0.408 0.409
W.SULAWESI 0.436 0.437 0.446 0.451 0.321 0.321 0.321 0.326 0.364 0.356 0.356 0.366
MALUKU 0.295 0.292 0.301 0.302 0.284 0.285 0.258 0.250 0.318 0.326 0.314 0.316
N. MALUKU 0.297 0.294 0.298 0.295 0.266 0.271 0.265 0.256 0.308 0.290 0.300 0.278
W. PAPUA 0.320 0.316 0.322 0.313 0.414 0.412 0.407 0.399 0.382 0.376 0.380 0.374
PAPUA 0.296 0.291 0.301 0.307 0.414 0.416 0.422 0.419 0.392 0.395 0.397 0.396
INDONESIA 0.393 0.399 0.401 0.398 0.317 0.319 0.315 0.314 0.381 0.385 0.384 0.381
Source: bps.go.id, 2022

JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 3
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

be sustainable first because it involves moral reasons.


According to Permen et al. (Fauzi, 2004), the B. LITERATURE REVIEW
considerations that make the economy must be
National Income
sustainable first because it involves moral reasons.
The current generation, who enjoys goods and According to (Hasyim, 2016), economic growth
services produced from natural resources and the can be interpreted as changing a country's economic
environment, has a moral obligation to leave the conditions continuously towards a better condition
services of these natural resources for future as long as a specific period. While according to
generations. The moral obligation includes not (Lincolin, 1999) growth economy is defined as an
extracting natural resources that damage the increase in the gross domestic product (GDP)/gross
environment depriving future generations of national product (GNP) regardless of whether the
opportunities to enjoy the same services. Second, increase is more significant or less than the
concerning ecological reasons, where biodiversity, population growth rate or whether changes in the
for example, has a very high ecological value, economic structure occur or not. There are three
economic activity should not be directed at things essential components needed in the economic
that threaten the ecological function. Third, growth of a nation: (1) Continuously increasing
economic reasons, from an economic point of view, inventory of goods; (2) advanced technology as the
are still being debated because it is not known main factor that determines the degree of growth in
whether or not economic activity meets the providing a variety of goods to the population; (3)
sustainability criteria. The economic dimension of the widespread and efficient use of technology
sustainability itself is pretty complex, so the aspect requires adjustments in the institutional and
of sustainability from an economic perspective is ideological fields so that the innovations produced
often limited to measuring intergenerational welfare by human science and technology can be used
maximization. Related to that statement, according appropriately (Hasyim, 2016). Different things
to the result of the study (Makmun, 2011), the described by (Sadono, 2001), economic growth
implementation of a directed and comprehensive means the development of activities in the economy
green economy in Indonesia must be supported by which causes the goods and services produced in the
government policies to ensure the success of its community to increase and the prosperity of the
implementation, among others, through the community to increase. The problem of economic
application of green budgeting to manage growth can be viewed as a macroeconomic problem
government finances and the application of green in the long run from one period to another. In the
procurement in public policies. assumptions of neo-classical theory, economic
Based on the explanation of the background of growth determinants are only divided into capital
the study, it can be concluded that the question of goods and labour (Rahardja & Manurung, 2006).
this research is: How do we describe a Furthermore, based on the theory of sector
comprehensive step to implement equitable economic growth, which was developed based on
distribution of economic income in rural and urban the Clark-Fisher hypothesis, states that an increase
areas? Furthermore, how are they related to green in per capita income will be accompanied by a
economy regulations? decrease in the proportion of resources used in the
agricultural sector (primary sector) and an increase
in the manufacturing industry sector (the secondary
sector) and then in the service industry (tertiary

JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 4
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

sector). The growth rate in a changing sector (sector Gini Coefficient


lift) is regarded as the primary determinant of the
development of a region (Adisasmita, 2005).
Based on the quote above, it can be
synthesized that economic growth is a process of
continuous transformation of a country's economic
condition, which can be measured through GDP/GNP
over a certain period, which aims to improve the
Economic Growth Rate
welfare of the wider community. Economic growth
Source: (Isnowati, 2011)
can also be measured through the overall GDP or
Figure 1. Inverted U-Curve Kuznets
GRDP value in all regions of a country. According to
Tarigan (Irawan, 2013), Gross Regional Domestic
Gini Ratio is a statistical technique for
Product is the total gross value added from all
measuring income inequality. The number on the
economic sectors in the region what is meant by
Gini Ratio as an indicator of income inequality has a
gross value added is the production value (output)
value range between 0 (zero) and 1 (one). The Gini
minus the intermediate cost like income factor
Ratio is equal to 0 (zero), indicating that the
components (wages, salaries, interest, land rent, and
inequality is low (perfect equality), while the number
profits), depreciation, and net indirect taxes. GRDP
1 (one) indicates that the distribution of inequality is
essentially describes the level of economic activity of
high (perfect inequality). According to Todaro in
a region, whether carried out by the community,
(Heryanah, 2017) describes the size of inequality in
private sector, or government in a certain period so
the table as follows:
that GRDP can indirectly be used as an indicator in
assessing the overall results of sustainable regional Table 2. Gini Ratio Based on Province and Regional
economic development activities (Soebagiyo, 2007). Gini Index Category
0,50-0,70 High
Gini Ratio Aspect in Income Inequality 0,36-0,49 Medium
Income inequality is the income the community 0,20-0,35 Low
earns, so there is a striking difference in people's Source: (Heryanah, 2017)
income. In other words, income inequality is the
difference in the community's income, resulting in Research (Huang, 2015) states that the
the broader income difference. This results in the relationship between the economy and income
rich getting rich and the poor getting poor (Putri et inequality can be positive or negative. In low-income
al., 2015). developing countries, there is a negative relationship
In line with that, according to (Isnowati, 2011), between income inequality and economic growth.
the relationship between income inequality and On the other hand, in high-income developing
economic growth can be explained by the Kuznets countries, there is a positive relationship between
Hypothesis. The hypothesis begins with economic inequality and economic growth (Anwar, 2017).
growth, which initially rises at a low level of income So, it can be concluded that income inequality
inequality until it reaches a certain level of growth, is a problem of the gap in income between
which then declines. The Kuznets hypothesis, when communities or regions that have developed and
described, will look like Figure 1 as follows: regions that are still lagging. The wider the distance
between incomes, the greater the variation in
income distribution, which in turn will cause income

JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 5
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

inequality. This is unavoidable due to the trickle- C. RESEARCH METHODS


down effect of the output ideally. The results of the
The approach used in this research is
national output are only enjoyed by a few people
qualitative with a descriptive analysis method. This
with specific aims and objectives (Damanik et al.,
2018). research is a study by searching and consolidating
concepts used in the broader scope of research with
Green Economy a more extensive conceptual reach. In conducting
A Green Economy is an economic idea that exploration, mature concepts become goals in
aims to improve the welfare and social equality of research and a wider conceptual reach (Yusuf, 2017).
the community while significantly reducing the risk Exploratory research is carried out for problems that
of environmental damage. This green economy can have not been clearly defined. This becomes relevant
also be interpreted as an economy that is low or does to the theme of the problem in this study, where
not produce carbon dioxide emissions to the economic equity occurs and the implications of
environment, saves natural resources, and is socially
environmental damage that are exploited due to the
equitable (Andy, 2014).
non-optimal concept of a green economy in
Following up on this, according to (Yasa, 2010),
Indonesia. The analysis technique used is a literature
economic development will develop rapidly by
search and case analysis related to the equal
adopting a green economic system or growth. This
distribution of national income and the green
green growth economic system is oriented towards
economy concept. The type of data in this research
the relationship between natural ecosystems and
uses secondary data from BPS and other literature to
human resources based on knowledge and
conduct the research results.
technology. The green economy does not rely on
The general steps to perform this analysis are
fossil fuels. With this, a green economy helps
as follows:
minimize the impact of human economic activities
1. Collect income data for urban and rural areas.
on climate change and global warming (Putthiwanit,
This data should include the amount of income
2016).
per individual or household in each region.
Concerning the expert opinion above, it can be
2. Compare the Gini ratio between urban and
synthesized that the Green Economy is an alternative
rural. Note that the significant difference
development vision that can encourage growth and
between these two values indicates different
improve the quality of human life in sustainable ways
levels of income inequality between the two
with environmental preservation, which is the
regions.
primary concern in economic growth. The need for
3. Interpret the results. If the Gini ratio for urban
identification, internalization, and optimization of
areas is higher than for rural areas, it indicates a
inclusive economic income distribution through
greater level of income inequality in urban
efforts to implement a green economy as a catalyst
areas. Conversely, if the rural Gini ratio is high,
is a tendentious phenomenon, especially after the
it indicates a greater level of income inequality
establishment of a government program through the
in rural areas.
Indonesia Green Growth Program, which Bappenas
The data and methodology used in this analysis
launched as a symbol of the implementation of a
must be transparent and valid to produce reliable
green economy in Indonesia.
conclusions. In addition, other factors such as access
to services and infrastructure can also affect the level
of income inequality between urban and rural and
conduct the green economy concept.

JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 6
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

D. RESULTS AND DISCUSSION increase the economic utilization of natural


resources and the environment sustainably; improve
For an effective transition to a green economy,
the management of natural resources and the
the government of Indonesia must have the right
environment to support the quality of life; provide
macro indicators to help measure progress (Sukhdev
the beauty and comfort of life; and increasing the
et al., 2015). The four goals or indicators are pro-
maintenance and utilization of biodiversity as the
growth, pro-job, pro-poor, and pro-environment.
essential capital for development. This shows the
Through this objective, it was found that
government initiated the green economy concept
macroeconomic indicators (such as GDP growth per
focusing on long-term development. As a follow-up,
capita GDP growth) are not suitable for measuring
the Indonesian government was explicitly involved in
sustainable development. What Indonesia needs are
signing the Agreement to establish a Global Green
three new indicators, namely “Inclusive wealth,"
Growth Institute in Seoul, South Korea. Then, in
"Green GDP," "Decent green jobs," and "GDP of the
finalizing the strategic steps for implementing green
rural poor," to build a pathway to sustainable,
growth internally, the Indonesian government set
equitable, and economically competitive
(Peraturan Presiden Republik Indonesia Nomor 82
development. I-GEM calculates these three
Tahun 2014), where this action is the action of the
indicators to help Indonesia build a development
Indonesian government which is pro-actively
strategy and incorporate changes into relevant
involved with the countries involved in socializing
national and sub-regional policies, which reflect the
and implementing the green economy concept.
social needs, environment, and actual conditions of
The government's part is additionally
all provinces in Indonesia. Indonesia. Therefore, the
expressed through the green development program
three indicators enable the government to make
propelled through National Planning Agency
strategies and plans based on existing regional
(Bappenas) by having five long-term targets:
strengths and also allow the provincial government
economic, financial development, comprehensive
to assess the impact of the planned intervention.
and impartial development, socio-economic and
The government has implemented several
natural flexibility, arrangement of sound and
strategic steps in various regions, as reflected in the
beneficial administrations to environments, and
following (Undang-Undang Republik Indonesia
decrease of nursery gas outflows. Pertinent to this,
Nomor 17 Tahun 2007). In realizing the vision it is
from the point of view of the state device, each
pursued through eight national development
organization is required to execute green
missions. Environmental issues, including a green
development preparation aimed at realizing the
economy, are part of Prosperous Indonesia's vision
competence of the state respectful device assets in
(iv) and the mission of (vi) Realizing a beautiful and
defining and executing arrangements that standard
sustainable Indonesia. The mission of realizing a
green financial development as well as defining
beautiful and sustainable Indonesia is to improve the
techniques for actualizing pro-green approaches that
management of development implementation that
coordinate with the program of each organization in
can maintain a balance between the use,
a comprehensive way maintainable and
sustainability, existence, and use of natural
comprehensive.
resources and the environment while maintaining
The concepts of green economy, green
the function, carrying capacity, and comfort in life in
growth, and green development are intended to
the present and the future, through harmonious use
operationalize the linkages of economic, social, and
of space between uses for settlements, socio-
environmental pillars in sustainable development.
economic activities, and conservation efforts;

JBPE Journal of Business and Political Economy, Volume 4 (1), June 2022 | 7
National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

Inclusive green growth is the path to sustainable target can be achieved only by eliminating
development. Sustainable development provides subsidies that are not conducive to energy use
the context for green growth. Green growth is a efficiency. Elimination of fuel and electricity
subset or part of sustainable development. The subsidies has the potential to contribute almost
scope of green growth is narrower and covers the half of the target or approx. 6-7%. Moreover, to
operational policy agenda to help achieve concrete reach the 14% per cent target, the policy could
and measurable progress related to the economy be coupled with the imposition of indirect taxes
and the environment (OECD, 2011). in the carbon-pricing framework.
The definition of economic instruments, 5. The Policy Mix application combines "removal of
according to the OECD, is a form of fiscal incentives energy subsidies with imposing carbon
and disincentives or other types and incorporates prices/taxes.
environmental costs and benefits into household 6. Recycling the budget surplus through
and company budgets (Yusuf, 2012). The purpose of compensating poor households and increasing
using economic instruments is to encourage efficient production activities by reducing indirect taxes.
and environmentally friendly production and This has the potential to be quite effective in
consumption through full cost-pricing. Among the mitigating the impact of distribution and the
economic instruments included are sewage taxes, or impact of reducing employment opportunities in
fees on pollutants and waste, as well as deposit-
the short term.
refund systems and pollution trade permits.
7. The development of the green market can also
Anderson (Yusuf 2012) mentions some examples of
be utilized by developing instruments such as
economic instruments that can be applied in
carbon finance and green stimulus funds. In an
developing a green economy. These economic
increasingly carbon-constrained world, private
instruments include pollution/pollution taxes, input-
markets and public financial institutions are
output taxes, subsidies for environmentally friendly
activities, and the withdrawal of subsidies for likely to expand to support climate change
activities that harm the environment. Meanwhile, mitigation in developing countries. If the
the government's implementation of green economy placement mechanism is suitable,
measures is not just selecting policy instruments internationally and nationally, Indonesia could
from a list of green economy policy measures but be the primary recipient of the financing.
also looking back at the effectiveness of the Indonesia accounts for less than 2% of the Clean
implementation of these instruments. In this regard, Development Mechanism (CDM) market.
economic instruments that can be applied in In expansion, there are rebellious ways of
Indonesia include: observing the dissemination of financial pay through
1. Eliminate or reduce subsidies that harm the the green economy utilizing macro-regional financial
environment through fuel, electricity, and pointers, to be specifically veritable sparing.
fertilizer subsidies, among others. Veritable sparing can be calculated by subtracting
2. Payment for environmental services (PES): global national/conventional investment funds from the
PES (REDD+) and local PES depreciation/liquidation esteem of all sorts of
3. Inter-regional fiscal transfer capital, be it man-made capital and normal asset
4. Engineering energy-pricing mechanisms can be capital. The Veritable Investment Funds Rate
potentially effective in achieving emission calculation per territory in Indonesia can be
reduction targets. This has the potential if the categorized into three territorial classifications:
energy sector's contribution is a reduction of unsustainable, imperceptibly economical, and
14% relative to the baseline; almost half of the

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National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

economical. Based on the Gini proportion table, it the vision and mission of the government's long-
can be compared and classified based on the Gini term arrangement have not been accomplished
record of each area, which is separated by rustic and ideally. In Indonesia, besides the complete world
urban zones that all areas in Papua, South Sulawesi, community, the Indonesian Government's approach
East Kalimantan, South Kalimantan, most areas on to accomplishing feasible advancement is carried out
Sumatra Island and NTB drop into the territorial through 4 (four) track methodologies, specifically
category the unsustainable. In the meantime, the pro-growth, pro-job, pro-environment, and pro-
areas that drop into the imperceptibly feasible environment advancement. The columns of
category are North Sumatra, West Sumatra, economic advancement appear to have parallel and
Lampung, Banten, West Java, Central Java, East Java, synergistic considerations with other advancement
Bali, Central Kalimantan, Gorontalo, Central techniques. The course of future advancement
Sulawesi, Southeast Sulawesi, and Maluku as it were arrangements will put more accentuation on the
four territories included within the economic proficient utilisation of common assets, minimizing
category, specifically the Territory of Yogyakarta, natural harm, lessening GHG outflows, and creating
East Nusa Tenggara, North Sulawesi, and West and actualizing clean products and advances, as of
Kalimantan. now more regularly alluded to as green economy
There is a need for the participation of the advancement, specifically a diminish within the
central and regional governments and the quality of common assets and natural capacity,
community in implementing these strategic steps on which is getting higher escalated. This suggests the
an ongoing basis. Economic equity in several regions, need for more arranged, coordinated, decentralized,
with the Gini index showing extreme levels of and participatory improvement administration by
inequality, is one of the focuses of local governments considering different improvement issues, including
in determining decision-making in implementing the mainstreaming the concept of sustainable
green economy. This also reduces the increase in improvement. In expansion, excellent natural
regional economic growth by preserving the area's administration expanded open mindfulness and
environment to provide the benefits of natural behaviour, essential in executing evenhanded
resources distributed to the next generation. conveyance of financial wage in provincial and urban
ranges through a green economy. To diminish that
E. CONCLUSION articulation, based on the investigative result of
Adepoju & Ogundunmade (2019), the experimental
The wonder of financial development that's comes about moreover recommended that budget
less than perfect with pointers of disparity in shortfall and outside obligation are adversely related
territorial wage gives a picture of the government in to financial development, recommending that
completing the uneven economic change. They have relying on domestic resources is the leading elective
typically appeared once more concerning the to back development and strengthen the significance
condition of characteristic assets, which is getting of sensible long-run growth-oriented approaches to
awful in their utilisation as crude and prepared get feasible development. This consideration aims to
materials for each commerce performing artist in a distinguish the determinants of financial
few locales. The reference to the long-term development of chosen nations employing a board
development vision stated in the (Undang-Undang information relapse approach. Also, recognise the
Republik Indonesia Nomor 17 Tahun 2007) is to factors contributing to financial development within
achieve an independent, advanced, just, and the Created, Creating, Slightest Created, Asian,
prosperous Indonesia. This speaks to the fact that

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National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)

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The limitation described in this study is the
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