Integration of Environmental and Economic Aspects in Green GRDP Calculation on the Industrial Sector in West Bandung District, Indonesia

Abstract

West Bandung Regency is a developing district in West Java, Indonesia. As a developing city, the industrial sector is one sector that has a large share of Regional GDP in this district, which is 39%. On the other hand, based on the concept of sustainable development, the calculation of Regional GDP or Gross Regional Domestic Product (GRDP) has not paid attention to aspects of resources depletion and environmental degradation. Therefore, Regional GDP is difficult to measure the business benefits of the industrial sector in the concept of sustainable development. This paper introduces concept of green Regional GDP and its contribution to regional income. This paper analyzes the value of depleted resources and degraded environments in the region, from 2015 to 2017. Resource depletion is focused on depletion of water resources. Whereas the degradation that occurs is focused on congestion and damage to water resources due to industrial waste. The industrial sector Green Regional GDP has resulted in a reduction in Regional GDP of 1.17% in 2015, 1.12% in 2016 and 1.06% in 2017. Therefore, an appropriate policy is needed in overcoming this problem, especially reducing environmental damage, namely reducing congestion and reducing environmental pollution in order to achieve sustainable development. Keywords: Sustainable development, Depletion, Degradation, Water, Congestion, Damage

Fdi, Income, and Environmental Pollution in Indonesia

“…Based on the study topic, this theory has a vast implementation within the business sector specifically businesses coming from foreign investors in terms of making them realize the significance of the natural environment and the harm it is getting through these business activities. According to the study conducted by Falatehan and Bahtiar (2019) adoption of green initiatives by the use of advanced and clean technology, productivity can be increased within these businesses and its processes brought through FDIs for raising capital and income level and also it can impact the environment in a positive manner. The concern for environmental safety has increased within the contemporary business settings that make it essential for the industrial sector towards reducing environmental pollution and to make the economy progress through sustainable practices (Swainson and Mahanty, 2018).…”

The Green GDP Implementation in Country-Based Environmental Management System: A Review

“…As stated that stages of evaluation and review in EMS indicators are significant variables since the p-ISSN : 2528-3561 e-ISSN : 2541-1934 continuous review will improve further sustainability performance. It shows by the case of Sweden, where their gap of green GDP and GDP steadily decreasing [25], along the way the country nominated as the highest green GDP in 2016 [26]. On the other hand, currently, the data gathered from all national green GDP, still in the no-growth or even degrowth phase, where the green GDP less than GDP, the productivity of capital and operations provide undesirable effects on environmental pollution and degradation [28].…”

“…On the other hand, currently, the data gathered from all national green GDP, still in the no-growth or even degrowth phase, where the green GDP less than GDP, the productivity of capital and operations provide undesirable effects on environmental pollution and degradation [28]. However, the finding published by [26] has stated that the green GDP is the potential to influence the policy implication on environmental management in Bandung with the data of specific sectors that need to be focused.…”

“…Toward the result, district government begin to aware and execute major strategy in improving water management. It is indicated by the gap reduction between conventional GRDP and green GRDP [31]. Thus, the local policy enforcement has significantly lead to the reduction of environmental depletion level.…”