Main Article Content

Abstract

This study examines the influence of good governance indicators, including corruption, democracy, law enforcement, and budget realization, on sustainable development in Indonesia. The research covers 34 provinces during the period 2020–2023. A quantitative approach was employed using a fixed-effects panel regression model. The findings indicate that the number of corruption cases has a significant positive effect on sustainable development, while democracy shows a positive but statistically insignificant relationship. In contrast, law enforcement, measured by the completion rate of criminal cases, and budget realization, both demonstrate significant negative effects on sustainable development. These results provide empirical grounds for designing adaptive and integrative policies that emphasize preventive measures, institutional innovation, and environmental incentives to achieve sustainability goals effectively. This study is limited by its short observation period, bias from the use of secondary data, limited variables, and a purely quantitative approach. Therefore, further research needs to extend the period, enrich the variables, and integrate mixed methods.

Keywords

Good Governance Corruption Democracy Law Enforcement Budget Realization Sustainable Development Index

Article Details

How to Cite
Nabila, S. N. R., & Suseno, D. A. (2025). Good Governance and Sustainable Development Index in Indonesia: Panel Data Evidence from 34 Provinces. Paradoks : Jurnal Ilmu Ekonomi, 8(4), 361–373. https://doi.org/10.57178/paradoks.v8i4.1768

References

  1. Acheampong, A. O., Opoku, E. E. O., & Dzator, J. (2022). Does democracy really improve environmental quality? Empirical contribution to the environmental politics debate. Energy Economics, 109. https://doi.org/10.1016/j.eneco.2022.105942
  2. Akadiri, S. Saint, Ozkan, O., & Kirikkaleli, D. (2025). Synergistic impact of renewable energy technology, governance, digitalisation, and human capital on sustainable development and load capacity factor in Germany’s energy landscape. Technology in Society, 83, 103002. https://doi.org/10.1016/j.techsoc.2025.103002
  3. Alfiana, R., Zyahra, R. P. A., Afandi, Y., & Hardjati, S. (2021). Good Governance: Grant Service Research. Journal Publicuho, 4(2), 271. https://doi.org/10.35817/jpu.v4i2.17713
  4. Andesta, H. Y., Gunarto, T., & Aida, N. (2022). Influence of Good Governance on ASEAN Economic Growth. International Journal of Economics Business and Entrepreneurship, 5(2), 69–75. https://doi.org/10.23960/ijebe.v5i2.196
  5. Apostu, S. A., & Gigauri, I. (2023). Sustainable Development and Entrepreneurship in Emerging Countries: Are Sustainable Development and Entrepreneurship Reciprocally Reinforcing? Journal of Entrepreneurship Management and Innovation, 19(1), 41–77. https://doi.org/10.7341/20231912
  6. Basuki, A. T., & Prawoto, N. (2019). Analisis Regresi Dalam Penelitian Ekonomi dan Bisnis (Dilengkapi Aplikasi SPSS dan Eviews). PT Rajagrafindo Persada, Depok, 18, 1–52.
  7. Benjamin, M., Turyareeba, D., Mugambe, K., Wamala, A. S., Jeke, L., & Boyi, B. (2023). Governance and the Manufacturing Sector Growth Among the BRICS Nations. Journal of Economics and Behavioral Studies, 15(3(J)), 22–33. https://doi.org/10.22610/jebs.v15i3(j).3633
  8. BPS. (2024a). [Metode Baru] Indeks Demokrasi Indonesia menurut Provinsi. https://www.bps.go.id/id/statistics-table/2/MjE1OSMy/-metode-baru--indeks-demokrasi-indonesia-menurut-provinsi.html
  9. BPS. (2024b). Persentase Penyelesaian Tindak Pidana (Persen). https://www.bps.go.id/id/statistics-table/2/Mjk3IzI=/persentase-penyelesaian-tindak-pidana.html
  10. BPS. (2025a). [Metode Baru] Indeks Pembangunan Manusia menurut Provinsi. https://www.bps.go.id/id/statistics-table/2/NDk0IzI=/-metode-baru-indeks-pembangunan-manusia-menurut-provinsi.html
  11. BPS. (2025b). Laju Pertumbuhan PDB Seri 2010 (Persen). https://www.bps.go.id/id/statistics-table/2/MTA0IzI=/pertumbuhan-ekonomi--triwulan-ii-2024.html
  12. BPS. (2025c). Produk Domestik Regional Bruto per Kapita Atas Dasar Harga Konstan 2010 Menurut Provinsi (ribu rupiah). https://www.bps.go.id/en/statistics-table/3/T1hBNVYwVjBjMU5oTTA5SFVuWjRVSGhuYUhsV1p6MDkjMw==/produk-domestik-regional-bruto-per-kapita-atas-dasar-hargakonstan-2010-menurut-provinsi--ribu-rupiah---2018.html
  13. Carayannis, E. G., Campbell, D. F. J., & Grigoroudis, E. (2021). Democracy and the environment: How political freedom is linked with environmental sustainability. Sustainability (Switzerland), 13(10). https://doi.org/10.3390/SU13105522
  14. Cristescu, M. P., & Nerișanu, R. A. (2021). Sustainable Development With Schumpeter Extended Endogenous Type of Innovation and Statistics in European Countries. Sustainability, 13(7), 3848. https://doi.org/10.3390/su13073848
  15. DJPK. (2025). Potal Data APBD. https://djpk.kemenkeu.go.id/portal/data/apbd
  16. Febrian, M., & Satria, D. (2025). Media Riset Ekonomi Pembangunan (MedREP) Peran Tata Kelola Pemerintahan Terhadap Pertumbuhan Ekonomi Di Asia. Acemoglu 2009, 463–471.
  17. Fhima, F., Nouira, R., & Sekkat, K. (2023). How does corruption affect sustainable development? A threshold non-linear analysis. Economic Analysis and Policy, 78, 505–523. https://doi.org/10.1016/j.eap.2023.03.020
  18. Frost, J. (2025). Five Reasons Why Your R-squared can be Too High. Retrieved August 27, 2025 from https://statisticsbyjim.com
  19. Ghasemi, A., & Zahediasl, S. (2012). Normality tests for statistical analysis: A guide for non-statisticians. International Journal of Endocrinology and Metabolism, 10(2), 486–489. https://doi.org/10.5812/ijem.3505
  20. Ghozali, I., & Ratmono, D. (2022). Analisis Multivariat dan Ekonometrika Teori, Konsep, dan Aplikasi dengan Eviews8. Badan Penrbit Universitas Diponegoro Semarang.
  21. Gonon, M., Vallet, A., Deschamps, V., Le Mieux, A., Oosterlinck, A., Soubelet, H., Dupuis, L., & Levrel, H. (2025). Subsidies against Nature: A multidimensional framework for biodiversity-aligned national budgets. Ecological Economics, 235, 108661. https://doi.org/10.1016/j.ecolecon.2025.108661
  22. Guerrero, O. A., & Castañeda, G. (2022). How does government expenditure impact sustainable development? Studying the multidimensional link between budgets and development gaps. Sustainability Science, 17(3), 987–1007. https://doi.org/10.1007/s11625-022-01095-1
  23. Gündoğdu, H. G., & Aytekın, A. (2022). The Effects of Sustainable Governance to Sustainable Development. Operational Research in Engineering Sciences Theory and Applications, 5(2), 117–151. https://doi.org/10.31181/oresta060722090g
  24. Haghighi, H., & Takian, A. (2024). Institutionalization for Good Governance to Reach Sustainable Health Development: A Framework Analysis. Globalization and Health, 20(1). https://doi.org/10.1186/s12992-023-01009-5
  25. Hasan, M. A., Voumik, L. C., Mozumder, A. I., Esquivias, M. A., Verteramo-Chiu, L., & Das, M. K. (2025). Role of governance index, democracy, industrialization, and urbanization on environmental sustainability of BRICS countries: A novel PMG-ARDL approach. Social Sciences & Humanities Open, 11, 101242. https://doi.org/10.1016/J.SSAHO.2024.101242
  26. Hoinaru, R., Buda, D., Borlea, S. N., Văidean, V. L., & Achim, M. V. (2020). The Impact of Corruption and Shadow Economy on the Economic and Sustainable Development. Do They “Sand the Wheels” or “Grease the Wheels”? Sustainability, 12(2), 481. https://doi.org/10.3390/su12020481
  27. Hope, K. R. (2022). The Corruption and Sustainable Development Nexus in Africa: A Contemporary Review and Analysis. Journal of Financial Crime, 31(2), 331–346. https://doi.org/10.1108/jfc-10-2022-0257
  28. Huang, A., Dai, L., Ali, S., Nazar, R., & Anser, M. K. (2025). Zero-emission vision: The role of E-mobility technology budgets in carbon mitigation. Transport Policy, 164, 265–280. https://doi.org/10.1016/j.tranpol.2025.02.001
  29. ICW. (2025). Indonesia Corruption Watch. https://antikorupsi.org/id
  30. Kaushik, A. (2023). The Role of Good Governance in Achieving Sustainable Development: A Study of India. International Journal of Political Science and Governance, 5(1), 101–106. https://doi.org/10.33545/26646021.2023.v5.i1b.209
  31. Kementerian Kehutanan. (2025). Hutan dan Deforestasi Indonesia Tahun 2024. https://kehutanan.go.id/news/article-10
  32. KLHK. (2025). SATU DATA KLHK. https://satudata.menlhk.go.id/
  33. Knox, C., & Orazgaliyev, S. (2024). Sustainable Development Goals and Good Governance Nexus: Implementation Challenges in Central Asia. Public Administration and Development, 44(4), 237–251. https://doi.org/10.1002/pad.2038
  34. Li, X., Aghazadeh, S., Liaquat, M., Nassani, A. A., & Sunday Eweade, B. (2025). Transforming Costa Rica’s environmental quality: The role of renewable energy, rule of law, corruption control, and foreign direct investment in building a sustainable future. Renewable Energy, 239(August 2024), 121993. https://doi.org/10.1016/j.renene.2024.121993
  35. Liu, R., Zhang, X., & Wang, P. (2022). A Study on the Impact of Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences. International Journal of Environmental Research and Public Health, 19(16). https://doi.org/10.3390/ijerph19169964
  36. Liu, Y., & Tang, L. (2024). Environmental Penalties, Internal and External Governance, and Green Innovation: Does the Deterrence Effect Work? Sustainability (Switzerland), 16(16), 1–17. https://doi.org/10.3390/su16166955
  37. Massonini Ngoma, R. G. T., Wang, X., Meng, X. R., Abraham Mahanga Tsoni, C. G., Danwana, S. B., & Ndombi, B. T. (2024). Achieving climate sustainability in the Republic of Congo: The role of economic growth, biomass energy consumption, rule of law and government effectiveness- a NARDL Approach. Heliyon, 10(15). https://doi.org/10.1016/j.heliyon.2024.e34256
  38. Meliza Sari, P. (2020). Analysis of Sustainable Development Index in the West Sumatera. Economica, 8(2), 151–162. https://doi.org/10.22202/economica.2020.v8.i2.3976
  39. Najicha, F. U., Wijaksana, M. M. S., & Wulandari, N. (2023). The Optimization of Environmental Policy to Achieve Sustainable Development Goals. Jsderi, 1(2), 98–107. https://doi.org/10.53955/jsderi.v1i2.10
  40. Nwafor, L. C. (2023). The Impact of Government Institutions on the Attainment of Good Governance for Sustainable Development in Nigeria Under the Buhari Administration (2015-2023). Journal of Law and Sustainable Development, 11(10), e1484. https://doi.org/10.55908/sdgs.v11i10.1484
  41. Prasetya, F. (2023). Good Governance and Public Trust. Jurnal Penelitian Ekonomi Akuntansi (Jensi), 7(2), 359–373. https://doi.org/10.33059/jensi.v7i2.8831
  42. Rachmawati, A. F. (2022). Dampak Korupsi dalam Perkembangan Ekonomi dan Penegakan Hukum di Indonesia. Eksaminasi: Jurnal Hukum, 1(1), 12–19.
  43. Sari, S., Yudianto, I., & Mulyani, S. (2024). Pengaruh Implementasi Good Government Governance Pada Kualitas Pelayanan Publik (Studi Pada Pemerintah Daerah Di Indonesia). JAK (Jurnal Akuntansi) Kajian Ilmiah Akuntansi, 11(2), 427–441. https://doi.org/10.30656/jak.v11i2.8748
  44. SDSN. (2025). SDG Index Profile Indonesia. https://dashboards.sdgindex.org/profiles/indonesia
  45. Subekti, N., Handayani, I. G. K. A. R., & Hidayat, A. (2024). Convergence of green and sustainable principles from the perspective of economic democracy in Indonesia. International Journal of Advanced and Applied Sciences, 11(5), 36–43. https://doi.org/10.21833/ijaas.2024.05.004
  46. Transparency International. (2025). Corruption Perceptions Index. Transparency International. https://www.transparency.org/en/cpi/2024
  47. Ullah, A., Pinglu, C., Hashmi, S. H., & Ullah, S. (2021). Nexus of regional integration, socioeconomic determinants and sustainable development in belt and road initiative countries. PLoS ONE, 16(7 July), 1–29. https://doi.org/10.1371/journal.pone.0254298
  48. Uzar, U. (2024). The critical role of green innovation technologies and democracy in the transition to sustainability: A study on leading emerging market economies. Technology in Society, 78. https://doi.org/10.1016/j.techsoc.2024.102622
  49. Van, V. T. T., Nguyen, T. T. H., Phan, G. Q., Ánh, L. T. H., & Loi, D. T. (2020). The Relationship Between Public Debt, Budget Deficit, and Sustainable Economic Development in Developing Countries: The Role of Corruption Control. Jurnal Ekonomi & Studi Pembangunan, 21(1). https://doi.org/10.18196/jesp.21.1.5033
  50. Yustitianingtyas, L., Pratiwi, L., Irawan, A., Stansyah, D., & Arifin, S. (2025). Environmental Law Policy in Indonesia: Challenges and Sustainable Justice. Iop Conference Series Earth and Environmental Science, 1473(1), 12046. https://doi.org/10.1088/1755-1315/1473/1/012046
  51. Zaitun, N. (2024). Corruption, Social Infrastructure and Their Role in Shaping Sustainable Development. https://doi.org/10.21608/aja.2021.103343.1176