Main Article Content
Abstract
Purpose — This study examines the role of coal and water resource circularity in supporting industrial electricity distribution and evaluates the broader economic impacts of National Strategic Projects (PSN) in Sumatra.
Method — Using panel data from seven Sumatra provinces for 2011–2021, the study applies Fixed Effect EGLS estimation using the Coal Circularity Dimension Index (CCDI) and Water Circularity Dimension Index (WCDI), complemented by Interregional Input-Output (IRIO) analysis.
Findings — Coal circularity, water circularity, and PLTU-generated electricity positively and significantly affect industrial electricity distribution. IRIO results also indicate stronger manufacturing linkages, household income, and employment, although weaker effects remain in water supply, waste management, recycling, and related sectors.
Implications — Resource circularity can strengthen the economic benefits of infrastructure development, but greater integration of environmental sectors is required to improve the sustainability of implementation of PSN.
Originality — This study integrates resource circularity indices with panel-data and IRIO analysis to assess both provincial resource efficiency and interregional economic impacts of PSN development in Sumatra.
Keywords
Article Details
Copyright (c) 2026 Laurensius Farel Dwi Putranto, Jovi Dacanay, Yuvensius Sri Susilo, Matthew Kartawinata, Jonathan Ersten Herawan

This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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[2] Ahmadi, G., Toghraie, D., & Akbari, O. A. (2017). Solar parallel feed water heating repowering of a steam power plant: A case study in Iran. Renewable and Sustainable Energy Reviews, 77(March), 474–485. https://doi.org/10.1016/j.rser.2017.04.019
[3] Allcott, H., Collard-Wexler, A., & O’Connell, S. D. (2016). How do electricity shortages affect industry? Evidence from India. American Economic Review, 106(3), 587–624. https://doi.org/10.1257/aer.20140389
[4] Anand, S., & Sen, A. K. (1994). Human Development Index : Methodology and Measurement. In Human Development Report Office Occasional Papers. https://doi.org/1 0.1016/b978-0-12-176850-8.50025-1
[5] Badan Pusat Statistik. (2016). Tabel Interregional Input-Output.
[6] Badan Pusat Statistik. (2022). Statistik Industri Manufaktur Indonesia.
[7] Badan Pusat Statistik. (2023). Statistik Listrik Indonesia 2017 - 2021.
[8] Baltagi, B. H. (2005). Econometrics Analysis of Panel Data (3rd ed., Issue 3). John Wiley & Sons, Ltd.
[9] Banerjee, A., Duflo, E., & Qian, N. (2020). On the road: Access to transportation infrastructure and economic growth in China. Journal of Development Economics, 145(May 2018), 102442. https://doi.org/10.1016/j.jdeveco.2020.102442
[10] Berliandaldo, M., & Hendrix, T. (2022). Dampak PLTU Terhadap Kondisi Ekonomi, Sosial, Dan Kesehatan Masyarakat Dalam Lingkungan Hidup Di Kecamatan Jenu. Vitruvian : Jurnal Arsitektur, Bangunan Dan Lingkungan, 11(3), 261. https://doi.org/10.22441/vitru vian.2022.v11i3.008
[11] Calderón, C., & Servén, L. (2014). Infrastructure , Growth , and Inequality: An Overview. Policy Research Working Paper WPS7034. September.
[12] Chang, Y., Huang, R., Ries, R. J., & Masanet, E. (2015). Life-cycle comparison of greenhouse gas emissions and water consumption for coal and shale gas fired power generation in China. Energy, 86, 335–343. https://doi.org/10.1016/j.energy.2015.04.034
[13] Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics. In Introductory Econometrics: A Practical Approach (Fifith). McGraw Hill.
[14] Hertwich, E. G., Gibon, T., Bouman, E. A., Arvesen, A., Suh, S., Heath, G. A., Bergesen, J. D., Ramirez, A., Vega, M. I., & Shi, L. (2015). Integrated life-cycle assessment of electricity-supply scenarios confirms global environmental benefit of low-carbon technologies. Proceedings of the National Academy of Sciences of the United States of America, 112(20), 6277–6282. https://doi.org/10.1073/pnas.1312753111
[15] Hewings, G. J. D. (2013). Interregional Input–Output Models. In M. M. Fischer & P. Nijkamp (Eds.), Handbook of Regional Science. Springer Berlin, Heidelberg.
[16] Korhonen, J., Honkasalo, A., & Seppälä, J. (2018). Circular Economy: The Concept and its Limitations. Ecological Economics, 143, 37–46. https://doi.org/10.1016/j.ecolecon.2017. 06.041
[17] KPPIP. (2015). Laporan KPPIP Semester II 2015.
[18] KPPIP. (2016). Laporan KPPIP Periode Juli - Desember 2016.
[19] KPPIP. (2017). Laporan KPPIP Semester 2, Juli - Desember 2017.
[20] KPPIP. (2018). Laporan KKIP Semester 2 Juni 2018 (Issue September).
[21] KPPIP. (2022). Laporan KPPIP Semester II 2022.
[22] Pinto, L. F. R., Tucci, H. N. P., Mummolo, G., de Oliveira Neto, G. C., & Facchini, F. (2022). Circular Economy Approach on Energy Cogeneration in Petroleum Refining. Energies, 15(5). https://doi.org/10.3390/en15051713
[23] Putranto, L. F. D. (2021). Jalur Alternatif Pertumbuhan Ekonomi dan Pembangunan Berkelanjutan: Studi Pengaruh Penerapan Ekonomi Sirkular di Pulau Sumatera. Prosiding The 2nd Sumatranomics.
[24] Srinivasu, B., Professor, A., & Srinivasa Rao, P. (2013). Infrastructure Development and Economic growth: Prospects and Perspective. Journal of Business Management & Social Sciences Research, 2(1), 2319–5614.
[25] Tang, C. F., & Tan, E. C. (2013). Exploring the nexus of electricity consumption, economic growth, energy prices and technology innovation in Malaysia. Applied Energy, 104, 297–305. https://doi.org/10.1016/j.apenergy.2012.10.061
[26] Tiwari, A. K., Shahbaz, M., & Adnan Hye, Q. M. (2013). The environmental Kuznets curve and the role of coal consumption in India: Cointegration and causality analysis in an open economy. Renewable and Sustainable Energy Reviews, 18(37775), 519–527. https://doi.org/10.1016/j.rser.2012.10.031
[27] Wada, Y., Van Beek, L. P. H., Wanders, N., & Bierkens, M. F. P. (2013). Human water consumption intensifies hydrological drought worldwide. Environmental Research Letters, 8(3). https://doi.org/10.1088/1748-9326/8/3/034036
[28] Wu, X., Shen, J., Li, Y., & Lee, K. Y. (2015). Steam power plant configuration, design, and control. Wiley Interdisciplinary Reviews: Energy and Environment, 4(6), 537–563. https://doi.org/10.1002/wene.161
[29] Yuan, J., Na, C., Lei, Q., Xiong, M., Guo, J., & Hu, Z. (2018). Coal use for power generation in China. Resources, Conservation and Recycling, 129(2016), 443–453. https://doi.org/10.1016/j.resconrec.2016.03.021