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

Circular Economy; Dimentional Index; IRIO Computation

Article Details

How to Cite
Dwi Putranto, L. F., Dacanay, J., Sri Susilo, Y., Herawan, J. E., & Kartawinata, M. (2026). Application of the resource circularity dimensional index in the national strategic project in Sumatera. Jurnal Ekonomi Indonesia, 18(2). https://doi.org/10.52813/jei.v18i2.611

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