Evaluating Implementation of Green Economy in Indonesia: Evidence From K-Medoids Cluster

The Environmental degradation and climate change are currently major challenges in the pursuit of sustainable economic growth. The green economy can serve as a key solution to address these challenges. This study aims to assess the progress of green economy implementation through the clustering of provinces in Indonesia. The data for this study were obtained from the Central Bureau of Statistics, utilizing nine variables derived from three aspects of the green economy: social, economic, and environmental. The K-Medoids method was employed in the cluster analysis to identify clusters for green economy implementation in Indonesia, based on the best model obtained through the Davies-Bouldin Index value. The modeling results indicate that the optimal clustering model for the provinces of Indonesia comprises three clusters. These clusters are categorized as provinces needing improvement in all aspects (Cluster 1), provinces requiring improvements in social and economic aspects (Cluster 2), and provinces that need to address environmental aspects (Cluster 3). The primary priority for provinces in Cluster 1 and Cluster 3 is to enhance human resource quality and reduce poverty rates. Meanwhile, provinces in Cluster 2 should focus on mitigating the negative environmental impacts of industrial activities. Both central and regional governments must implement carbon emission reduction programs, environmental conservation initiatives, foster collaboration among stakeholders, and conduct thorough monitoring and evaluation.