Green Economy Transition and Sustainable Regional Development in Indonesia: A Systematic Literature Review

Abstract

The green economy transition has become an essential component of Indonesia's development agenda. However, differences in economic structures, fiscal capacity, institutions, human resources, and ecological conditions have resulted in unequal regional readiness. This study analyzes publication trends, methodological characteristics, major themes, enabling factors, barriers, research gaps, and policy implications of the green economy for sustainable regional development in Indonesia. A systematic literature review was conducted following the PRISMA 2020 guidelines. Literature published between 2015 and 2026 was retrieved from Google Scholar using seven combinations of Indonesian and English keywords. Of the 105 records identified, 27 articles met the inclusion and quality assessment criteria and were included in the final synthesis. The results show that 77.8% of the articles were published between 2023 and 2026, 51.9% employed quantitative approaches, and the regency or city level was the most frequently examined territorial unit. Twenty-four articles were classified as high quality and three as medium quality. Six major themes emerged: circular economy and resource management; regional green economy policy and governance; green finance and fiscal capacity; green growth and regional inequality; natural resource sector and local economic transformation; and energy transition, green jobs, and human development. Institutional capacity, financing, technology, infrastructure, human resources, participation, and local value chains determine regional transition outcomes. The study concludes that green economic policies should be territorially differentiated and place just transition at their core to ensure that economic, environmental, and social benefits are distributed more equitably across Indonesia's regions