The Impact of Digital Technology on Environmental Quality: Empirical Evidence from Indonesia

Research Originality: This research investigates how digital technologies influence environmental quality in Indonesia.Research Objectives: This study examines the impact of digital technologies and socioeconomic variables on environmental quality in Indonesia.Research Methods: This study employs the System-Generalized Method of Moments (GMM) approach and analyzes data from 2013 to 2023. Key variables include digital technology, gross regional domestic product (GRDP), foreign direct investment (FDI), and mean years of schooling.Empirical Results: Computer ownership negatively impacts environmental quality due to higher energy consumption and e-waste. In contrast, GRDP improves environmental quality as wealthier regions invest in green infrastructure and stricter policies. FDI has a harmful effect, supporting the ‘pollution haven’ hypothesis of resource exploitation and unsustainable practices. Education fosters environmental awareness, though its influence is still limited.Implications: Digital technologies can enhance environmental quality, requiring strategic planning and continuous innovation by central and local governments.JEL Classification: O11, O13, Q56How to Cite:Kartiasih, F., Rosanti, H.P., Miswa, S.D., & Hakim, A.R. (2025). The Impact of Digital Techonologies on Environmental Quality: Empirical Evidence from Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 77-92. https://doi.org/10.15408/sjie.v14i2.44874

GWPR Model on Indonesian Economic Growth: The Analysis of Spatially Varying Relationships

Research Originality: This research is original in examining the spatial varying relationship on economic growth in Indonesia.Research Objectives: This study investigates the variability of Indonesia\u27s economic growth model determinants.Research Methods: This study uses the Geographically Weighted Panel Regression (GWPR) approach. Panel data was analyzed with 34 provinces in Indonesia from 2016 to 2022.Empirical Results: This study found that the Revenue Sharing Fund (DBH) variable significantly influenced economic growth in 32 provinces. Meanwhile, the influence of DBH is not significant in only two provinces, namely Papua and West Papua. The variables of Labor and Gross Fixed Capital Formation did not have a significant effect on economic growth in 34 provinces.Implications: These results show that Indonesia\u27s economic growth rate is still not optimal, so the government is expected to design development programs that integrate various factors, such as maximizing Revenue Sharing Fund management, improving the quality of labor, and maximizing capital efficiency, to encourage economic growth in all provinces.JEL Classification: C31, O47, R11, H54How to Cite:Santoso, E., Priyono, T. H., Istiyani, N., Jumiati, A., & Yunitasari, D. (2025). GWPR Model on Indonesian Economic Growth: The Analysis of Spatially Varying Relationships. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 37-52. https://doi.org/10.15408/sjie.v14i1.44771

Sharia Supervisory Board and Islamic Banking Performance in Indonesia: Does Size Matter?

Research Originality: This study is amongst a few studies empirically examining the impact of the Sharia Supervisory Board\u27s (SSB) characteristics on the financial performance of Islamic banks in Indonesia. This attribute concerns regulators and market players due to its importance in Shariah governance and Islamic banks\u27 performance. This study encompasses both full-fledged and dual-banking Islamic financial institutions.Research Objectives: This study investigates the impact of the Sharia Supervisory Board\u27s characteristics on the financial performance of Islamic banks in Indonesia.Research Methods: This study utilizes random-effects GLS unbalanced panel data regression analysis with panel data from 30 Islamic banks in Indonesia (13 full-fledged Islamic banks and 17 dual-banking Islamic banks) from 2018 to 2023.Empirical Results: The study highlights the pivotal role of SSB size in enhancing the financial performance of Islamic banks. The results suggest that the size of SSB has a significant positive influence on the financial performance of Islamic banks in Indonesia during the 2018- 2023 period.Implications: It provides additional rationale for the newly issued regulation regarding the SSB size in Indonesia. It also offers actionable insights into the necessity of effective governance structures to ensure the sustainable growth of Islamic banking institutions.JEL Classification: G21, G28, G34How to Cite:Pessiwarisa, J. A., & Kasri, R. A. (2025). Sharia Supervisory Board and Islamic Banking Performance in Indonesia: Does Size Matter?. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 231-246. https://doi.org/10.15408/sjie.v14i1.44740

Heterogeneous Effects of Islamic Finance: A Multilevel Analysis for Policy Optimization in Developing Economies

Research Originality: This study addresses a gap in the literature by examining the heterogeneous impact of Islamic financial instruments. It incorporates various contextual factors and employs panel data regression to control for cross-country and temporal heterogeneity, offering a broader perspective on Islamic finance and economic growth.Research Objectives: This study analyzes the impact of Islamic financial instruments on economic growth in developing countries with different income levels over time.Research Methods: A quantitative approach is applied using panel data regression with pooled data classification to account for variations in data treatment.Empirical Results: The findings reveal that Islamic financial instruments, particularly Total Islamic Financing and Islamic Banking Assets, significantly enhance economic growth. Demographic factors, such as population size, also play a key role, while inflation has no significant impact. Additionally, Fixed Effects (Cross) values, which adjust for country- and year-specific heterogeneity, show substantial variation, with positive and negative values across countries and periods.Implications: These findings offer policy insights to help governments and regulators develop responsive, economic policies that promote financial inclusion, strengthen regulatory frameworks, and support sustainable growth through Islamic finance.JEL Classification: C33, F43, G21, O16How to Cite:Supriadi, I., & Wany, E. (2025). Heterogenous Effect of Islamic Finance: A Multilevel Analysis for Policy Optimization in Developing Economies. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 197-216. https://doi.org/10.15408/sjie.v14i1.44736

Women\u27s Micro Business Performance in Islamic Perspective: Social Learning Theory Approach

Research Originality: This research examines the gender gap in the economic sector, particularly women\u27s micro-enterprises in Indonesia, which has not been widely explored. With an Islamic approach and Albert Bandura\u27s Social Learning Theory.Research Objectives: This study aims to describe the performance of women micro-entrepreneurs from an Islamic perspective and empirically prove the influence of competence, Islamic work ethic, family support, and manager role actualization on women\u27s micro-enterprises in Bandung City.Research Methods: This study used a quantitative method with a descriptive causality research design. The survey method collected data from 236 female micro-business owners in Bandung City. The data was processed using the Partial Least Square—Structural Equation Modeling (PLS-SEM) analysis technique. Empirical Results: The results show that, from an Islamic perspective, competence and an Islamic work ethic positively affect women\u27s micro-enterprise performance. However, family support has a negative influence on business performance.Implications: This research makes an important contribution to understanding the dynamics of women\u27s micro-enterprise performance from an Islamic perspective. The results can be used as a basis for developing more effective programs and policies to support women\u27s economic empowerment through micro-enterprises.JEL Classification: L26, J16, M10, M13, O17, Z12How to Cite:Fatimah, S. H., Nurasyiah, A., & Rosida, R. (2025). Women’s Micro Business Performance in Islamic Perspective: Social Learning Theory Approach. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 217-230. https://doi.org/10.15408/sjie.v14i1.44739

The Impact of Zakat, Agricultural Output, and Poverty on Indonesia’s Food Security

Research Originality: The originality of this research lies in integrating zakat as an Islamic financial instrument into the analysis of food security in Indonesia, a topic that has rarely been explored. Furthermore, it links the concept of maqashid sharia with the Sustainable Development Goal 2 (Zero Hunger), thus offering a novel contribution both theoretically and practically to the food security literature. Research Purpose: This study aims to assess the likelihood of food security across Indonesian provinces and investigate the role of zakat solutions. Research Methods: Employing a quantitative methodology, panel data on zakat utilization, agricultural output, and poverty levels from 34 Indonesian provinces (2013-2022) were analyzed using EViews 9. Empirical Results: The findings reveal that agricultural output and zakat utilization have a positive and significant impact on food security, whereas poverty has a negative effect. Implications: More effective policies are necessary to manage zakat utilization, enhance food production, and alleviate poverty, thereby ensuring Indonesia has a more stable and sufficient food supply for all. JEL Classification: Q18, I32, O13, Z12 How to Cite:Salsabila, A. A., Nurasyiah, A., & Firmansyah. (2025). The Impact of Zakat, Agricultural Output, and Poverty on Indonesia’s Food Security. Signifikan: Jurnal Ilmu Ekonomi, 14(2), 549-562. https://doi.org/10.15408/sjie.v14i2.44738

Currency Risk and Debt Maturity: Their Effects on the Resilience of Indonesia’s Foreign Exchange Reserves

Research Originality: This study uncovers the unexpected negative impact of long-term external debt on Indonesia’s foreign exchange reserves, challenging conventional beliefs about debt stability. Research Objectives: This study provides important—and occasionally surprising—new insights into the dynamics of Indonesia\u27s external debt and its impact on the country\u27s foreign exchange reserves. Research Methods: Using recent time series data from 2013–2024 and the tried-and-true OLS regression method, this study provides a thorough and timely analysis of the relationship between Indonesia\u27s foreign exchange reserves and the structure of its external debt. Empirical Results: The empirical results indicate that long-term debt has a negative impact on foreign exchange reserves, whereas Rupiah and foreign currency-denominated debts have positive effects. Notably, short-term debt shows no significant impact. These findings offer practical guidance for Indonesia’s external debt management, supporting better debt prioritization and enhanced financial resilience. Implications: These novel insights offer valuable guidance for optimizing debt management to strengthen Indonesia’s financial resilience and economic stability. JEL Classification: E4, E5, E6 How to Cite:Afriana, W., Damanhuri, D. S., Taryono.,& Amanah, S. (2025). Currency Risk and Debt Maturity: Their Effects on the Resilience of Indonesia’s Foreign Exchange Reserves. Signifikan: Jurnal Ilmu Ekonomi, 14(2), 537-548. https://doi.org/10.15408/sjie.v14i2.46526

Household Food Consumption and Poverty Reduction After Earthquakes: Evidence from Lombok

Research Originality: This study contributes to the literature by examining how household food consumption mitigates the poverty impact of earthquakes, an area that remains underexplored in post-disaster economic studies.Research Objectives: The study aims to analyze the role of per capita household food consumption in poverty reduction after the Lombok earthquake and to highlight its importance for economic recovery.Research Methods: This study uses panel data from 10 districts/cities in West Nusa Tenggara (2011-2019) to employ the First-Difference Generalised Method of Moments (FDGMM) to address potential endogeneity and estimate the causal relationship between food consumption and poverty.Empirical Results: The results show that per capita food consumption significantly reduces poverty under normal conditions and after a disaster. Meanwhile, economic growth positively impacts poverty, suggesting that the observed growth is not inclusive. The study also finds that the direct effect of the earthquake on food consumption is statistically insignificant, suggesting that other factors, such as relief programs, may have played a role in stabilizing consumption.Implications: These findings underscore the importance of policies that enhance food security and equitable distribution, particularly in post-disaster contexts. Strengthening social protection programs and ensuring inclusive economic growth is essential for long-term poverty reduction in disaster-prone areas.JEL Classification: C33, I32, Q54How to Cite:Pratama, A. W., Sari, D. W., & Awwalin, I. (2025). Household Food Consumption and Poverty Reduction After Earthquakes: Evidence from Lombok. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 65-76. https://doi.org/10.15408/sjie.v14i1.43926

Fiscal Sustainability and Country Risk Profile: Empirical Evidence in Indonesia

Research Originality: This research examines fiscal sustainability by considering the fiscal behavior of different government regimes and analyzing the correlation between fiscal sustainability and a country\u27s risk profile using the VARX method, with the real effective exchange rate (REER) as an exogenous variable.Research Objectives: This study aims first to determine whether Indonesia\u27s fiscal conditions are sustainable across different government regimes. It then investigates whether a significant link exists between Indonesia\u27s fiscal sustainability and its country\u27s risk profile, as reflected by sovereign spreads from 2005 to 2024.Research Methods: This study used the Vector Autoregressive Exogenous (VARX) method to capture endogeneity, exogeneity, simultaneity, direct effects, indirect effects, and shock-response of the variables used to measure the relationship between fiscal sustainability and sovereign risk.Empirical Results: The findings indicate a significant relationship between fiscal sustainability and country risk, where an increase in the primary balance raises investor risk perception. Meanwhile, if debt management policies are implemented prudently and effectively, a rise in the debt-to-GDP ratio does not always widen the sovereign spread.Implications: These results suggest that, despite differences in government regimes, policymakers should focus on strengthening the government\u27s ability to manage debt prudently and either generate a primary balance surplus or reduce the deficit by sustainably enhancing revenue and spending policies to maintain fiscal sustainability and lower the country\u27s risk profile.JEL Classification: H62, H60, H63, C32How to Cite:Mufid, A.H., & Widyawati, D. (2025). Fiscal Sustainability and Country Risk Profile: Empirical Evidence in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 163-178. https://doi.org/10.15408/sjie.v14i1.45801

Government’s Role in Enhancing Economic InclusionThrough Digital Infrastructure Equity in Indonesia

Research Originality: This research is original in its examination of the equitable distribution of digital infrastructure in enhancing economic inclusion in Indonesia, employing a fixed effect model and quantile regression approach. Research Objectives: This study investigates the impact of the equitable distribution of digital infrastructure on enhancing economic inclusion in Indonesia. Research Methods: This study employs a fixed effect model and quantile regression, analyzing data from 34 provinces between 2019 and 2023. Key variables include internet access, internet speed, the number of Base Transceiver Stations (BTS), and digital literacy. Empirical Results: The findings reveal that internet access and internet speed have a positive and significant impact on digital financial inclusion, whereas the number of BTS and digital literacy exhibit no significant effect. The impact of digital infrastructure varies across regions, with areas exhibiting lower financial inclusion requiring greater infrastructure optimization compared to those with higher inclusion levels. Implications: The results imply that digital infrastructure development plays a critical role in promoting equitable financial inclusion. Consequently, policymakers are urged to prioritize and accelerate the expansion of digital infrastructure, particularly in regions lagging behind, to reduce financial exclusion and foster inclusive economic development at the national level. JEL Classification: O33, O10, G28, C23, C21 How to cite: Himmati, R., Dana, B. S., & Wati, A. E. F. (2025). Government’s Role in Enhancing Economic Inclusion Through Digital Infrastructure Equity in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 14(2), 291-302. https://doi.org/10.15408/sjie.v14i2.45574