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Abstract

Purpose— This study aims to analyze the effects of non-forest land cover area, Gross Regional Domestic Product (GRDP) in the industrial sector, and per capita energy consumption on the Environmental Quality Index (EQI) in Indonesia.


Research Methodology— This study employs a quantitative approach using balanced panel data regression with the Fixed Effects Model (FEM) across 33 Indonesian provinces during the 2018–2024 period.


Results— The results of the study indicate that the area of non-forest land cover has a positive but insignificant effect on the Environmental Quality Index (IKLH). Meanwhile, the industrial sector’s regional gross domestic product (PDRB) and per capita energy consumption have a significant negative effect on IKLH. These results indicate that industrial activities and high energy consumption remain the primary factors affecting the environment in Indonesia.


Research limitations/Implications— This study has limitations because it uses only three distinct factors and examines data only from 2018 to 2024. The findings indicate that increased industrial activity and energy consumption are associated with a decline in environmental quality. Therefore, it is necessary to strengthen industrial policies and energy management by improving resource efficiency, controlling environmental impacts, and implementing sustainable development principles.


Originality— This study simultaneously examines the effects of these three factors on the Environmental Quality Index (EQI) using panel data from 33 Indonesian provinces for the period 2018–2024.

Keywords

Environmental Quality Index Non-Forest Land Cover GDP Regional Industrial Sectors Per Capita Energy Consumption

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How to Cite
Siboro, R. P., & Nugrahadi, E. W. (2026). Non-Forest Land Cover Area, Gross Regional Domestic Product (GRDP) from the Industrial Sector, and Energy Consumption on the Environmental Quality Index in Indonesia. Advances: Jurnal Ekonomi & Bisnis, 4(5), 1567–1578. https://doi.org/10.60079/ajeb.v4i5.1108
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