Good Government Governance as a Moderator in Achieving Sustainable Development Goals in Indonesia

Sustainable Development Goals (SDGs) is a world program established by the United Nations on September 25 2015 with 17 goals and 169 measurable achievements. SDGs have three main pillars, namely economic pillars, social pillars and environmental pillars. This research focuses on the three main pillars of the SDGs. Economic growth is a continuous change in the conditions of a country towards rapid development in a certain period. This is characterized by an increase in production capacity which results in an increase in national income thereby changing the structural transformation from the primary sector to the secondary and tertiary sectors as well [1]. The direction of this transformation is a change in people's income accompanied by a high level of equality.

The Sustainable Development Goals (SDGs) are a set of goals that aim to address current requirements while also meeting the needs of future generations [2, 3]. The SDGs are built on three integrated pillars: the economy (economic sustainability), the social (social sustainability), and the environment (environmental sustainability), all of which are interdependent and mutually reinforcing [4]. SDGs carry the notion of ensuring the quality of human existence while not exceeding the capacity of ecosystems to support it. Thus, the meaning of SDGs is a development that meets present needs without jeopardizing future generations' ability to fulfill their own needs [5, 6].

Sustainable Development Goals (SDGs) aim to improve community welfare, to meet human needs and aspirations. SDGs are essentially aimed at seeking equitable development between generations now and in the future [7]. SDGs are not only economic development but also intellectual, emotional, moral and spiritual development. Sustainability is the main key to finding solutions to problems facing the world, such as inadequate access to food, environmental degradation, decline in natural resources and loss of forests as well as worsening nutrition and health and welfare of people (poverty). SDGs are a common challenge for the global community, which has become a goal and is widely recognized by society.

This study will examine the economic growth for the economic pillar, Human Development Index for the social pillar, and Environmental Quality Index for the environmental pillar. To be considered sustainable, the three pillars must interact with one another. Social and economic goals must be met while taking into account the environmental impact. This study also includes the Good Government Governance (GGG) variable as a moderating variable. Good Government Governance (GGG) contributes to the persistence of sustainable development. Good governance sustains and connects the three primary pillars of sustainable development (economic, environmental, and social) so that they can be observed consistently to fulfill their sustainability goals.

Economic growth is a prerequisite for the development of potential GNP, which reflects increases in per capita output and living standards [8]. Economic growth in actual economic activity refers to the physical development of goods and services that apply in a country, such as an increase in total industrial goods production, infrastructure development, an increase in the number of schools, an increase in service sector production, and an increase in capital goods production [9]. However, forecasting economic development based on numerous forms of output data is extremely challenging [10].

The Gross Regional Domestic Product (GRP) is a typical indicator of economic growth [11]. The Central Bureau of Statistics defines GRP as the total added value generated by all business units in a region or the total value of final products and services produced in a region [12]. Development must be carried out in a balanced manner, according to the notion of development that focuses on humans, namely balance of developing and deploying capabilities. This means that human development is concerned with more than only human abilities, such as the ability to acquire greater health, live longer, or have a higher level of education. However, it must also take into account how humans use their ability to improve their lives, for as by putting their abilities to work [13].

The success of the national economy is not only focused on the high rate of economic growth but is also seen in the success in human development. Components measured in the Human Development Index (HDI) include per capita income, life expectancy, education and illiteracy rate. With investment in each component, the quality of human resources will increase [14]. According to Li and Li [15], when national income improves, people's income also increases. Apart from economic growth and human development, maximum environmental quality will also support optimal human survival [16]. This indicator can be used to support alignment with SDGs goals.

UNDP (United Nations Development Programme) provides the understanding that human development is a process to increase human choices. The concept or definition of human development basically covers very broad dimensions of development. In the concept of human development, development should be analyzed and understood from a human perspective, not just from economic growth.

The development concept focuses on humans, development must be carried out in a balanced manner. The balance between building capabilities and utilizing abilities. This means that human development does not only pay attention to human abilities, for example, the ability to achieve a better level of health, live a longer life or have a better level of education. However, we must also pay attention to how humans utilize their abilities for things that can improve their lives to a better level, for example by utilizing their abilities to work.

The Human Development Index is an index that assesses a region's or country's socio-economic development by combining achievements in education, health, and adjusted real per capita income [17]. According to Amaluddin et al. [18], the Human Development Index consists of three composite indicators that are used to measure a country's average achievement in human development, namely: length of life, as measured by life expectancy at birth; education, as measured by the average length of schooling and literacy rate for the population aged 15 years and over; and standard of living, as measured by per capita expenditure, which has been a measure of progress in human development. This index has a value between 0 and 1.00 [19].

The next research variable is the Environmental Quality Index. According to Fairbrother [20] the Environmental Quality Index is a summary of information containing environmental conditions during a specific period, often one (one) year, after which the index number is translated into a good condition or vice versa. The further the index number deviates from 100, the more emphasis must be placed on environmental protection and management. Meanwhile, according to Kartiasih and Pribadi [21] the Environmental Quality Index is a score that can be interpreted into numerous areas and indicates how effectively a country is at implementing environmental laws or the success of environmental policies.

According to Tompa et al. [22] the Environmental Quality Index indicators comprise 3 (three) indicators: water quality index, air quality index, and land cover quality index. Environmental Quality Index values can be classified into the following ranges (see Table 1).

Table 1. Range of Environmental Quality Index values

Source: Ministry of Environment and Forestry of the Republic of Indonesia

This study also includes the moderating variable of Good Government Governance (GGG) in Indonesia and Malaysia. Good Government Governance (GGG) contributes to the long-term viability of sustainable development. Good Government Governance (GGG) preserves and connects the three primary pillars of sustainable development (economic, environmental, and social) so that they may be regularly assessed to fulfill their sustainability goals. Good Government Governance results from economic progress in accordance with the sustainable development agenda with 16 goals, Justice and Strong Institutions [23].

Jatmiko and Lestiawan [24] stated that "Good Government Governance (GGG) is a commonly used term in government circles." For the government to carry out its tasks effectively, efficiently, and following the expectations of society, Good Government Governance, also known as good governance, is governance that is applied to all public activities [24-26]. This is in line with the goals of the government, which include providing for the general welfare. It is hoped that good governance can be achieved by putting the principles of good management into practice [27].

A behavior rule for good governance is known as Good Government Governance. Hardiwinoto [26] regarding the principles for Good Government Governance, implementation of Good Government Governance is based on five principles: democracy, transparency, accountability, legal culture, and fairness and equality. These principles act as a fundamental guide for putting Good Government Governance into practice so that government functions effectively [28, 29]. 

Good Government Governance is effective and responsible development management is implemented [27, 29, 30]. Beshi and Kaur [31] and Muhammad et al. [32] stated that "Good Government Governance" is a benefit that incorporates stakeholders in diverse economic, social, and political activities as well as the usage of resources including natural, financial, and human resources for the benefit of the population.

Various research related to the Sustainable Development Goals has been carried out by AlArjani et al. [33] conducted several studies related to Sustainable Development Goals, with the findings proposing the concept of sustainability based on the concept of need and work, as the main exchange process between society and nature, and supporting social sustainability from a conceptual and analytical standpoint. Kroll et al. [2] conducted additional research, with the findings outlining the main elements of sustainable development and governance, and discovered that sustainability is a process of adaptive change that is socially institutionalized, with innovation being an important component, and this research produces a conceptual framework for policy-making towards sustainability.

Then Zhu et al. [9] research on the outcomes of the MDGs program research had a beneficial impact on eradicating poverty in Bangladesh, and to accomplish the SDGs, the government at all levels must implement appropriate and long-term poverty reduction programs. Tampakoudis et al. [34] with research results that achieving the SDGs requires a conceptual and methodological framework, not only socio-economic and environmental statistics, and the relevance of all SDGs indicators is a key indicator in achieving the target. Performed the subsequent study, which found that reaching the SDGs required a conceptual and methodological framework in addition to socioeconomic and environmental statistics, as well as the importance of all SDGs indicators, which are crucial in accomplishing targets. Another result is that the success of the SDGs agenda is influenced in the early phases of the policy cycle by a political process that considers scientific knowledge and is based on facts.

The following research is from Kartiasih and Pribadi [21] with the findings that economic growth, Human Development Index, third party funds, and Environmental Quality Index together affect SDGs, however, Environmental Quality Index partially does not affect SDGs. Another result indicates that Central Java is the province with the best chance of achieving the SDGs because it has above-average economic growth and a high Environmental Quality Index.

The quantitative research method was applied in this study. Quantitative research methods can be defined as procedures used to analyze specific populations or samples, with data analysis being statistical with the goal of testing stated hypotheses and obtaining empirical evidence related to the relationship between variables that have been formulated in the hypothesis [40]. This study is associative. Associative research seeks to determine the relationship between two or more variables by looking for roles, impacts, and causal relationships, specifically between the independent variables (economic growth, Human Development Index, Environmental Quality Index) and the dependent variable [41].

The samples in this study were all of the population taken, namely 34 provinces in Indonesia. The following are 34 provinces in Indonesia: Nangro Aceh Darussalam, West Sumatra, North Sumatra, South Sumatra, Lampung, Riau, Riau Archipelago, Jambi, Bangka Belitung Islands, Bengkulu, DKI Jakarta, Banten, West Java, Central Java, East Java, Regions Special Yogyakarta, Bali, West Nusa Tenggara, East Nusa Tenggara, West Kalimantan, South Kalimantan, Central Kalimantan, East Kalimantan, North Kalimantan, West Sulawesi, Southeast Sulawesi, South Sulawesi, Central Sulawesi, North Sulawesi, Gorontalo, Maluku, North Maluku, Papua and West Papua. Additionally, based on the non-probability sampling technique with saturated sample technique utilized in this study, a total of 34 samples with 4 years of observation were used, yielding 136 units of analysis.

The saturated sampling technique is a technique for determining the sample if all members of the population will be used as samples in the research. The choice of a nonprobability sampling technique with a saturated sampling technique was based on the consideration that the population size in this study was relatively small so that a saturated sampling technique by taking the entire population as a research sample was possible. Apart from that, the subjects Zeng et al. [40] in this research also have the same special characteristics, namely the provincial government, so that using a saturated sampling technique can reduce population bias and generalization of research results will be more accurate.

The secondary data used is in the form of panel data which includes data on per capita income, Human Development Index (HDI), Environmental Quality Index, and Good Government Governance for 34 provinces in Indonesia in the 2018-2021 period. Per capita income data, HDI is obtained through publications from the Bappenas RI, while Environmental Quality Index is obtained through publications from the Ministry of Environment and Forestry. Meanwhile, the Good Government Governance variable is measured using the dimensions of accountability, transparency, participation, justice, efficiency and effectiveness. Good Government Governance data is obtained from the results of the Indonesia Governance Index (IGI) ranking.

In this study, quantitative data analysis methods were employed. Research data are quantified in quantitative analysis to generate the information required for the analysis. SEM Warp-PLS version 7.0, a strong structural equation method (SEM) to discover non-linear correlations between latent variables and correct path coefficient values in accordance, was used as the data analysis tool in this work [40]. Warp-PLS is the first software that can identify non-linear relationships between latent variables and correct path coefficient values. Because most relationships between variables are nonlinear, Warp-PLs can find real relationships between latent variables in SEM analysis. Therefore, often the path coefficients associated with strong real effects can be higher than those estimated by other SEM software [41]. The tests conducted in this work comprised descriptive statistical tests, evaluation tests of measurement models, and hypothesis testing.