2020, Volume 8, Issue 1, Pages: 546-550  
J. Environ. Treat. Tech.  
ISSN: 2309-1185  
Journal web link: http://www.jett.dormaj.com  
Digital Economic Challenges and Economic  
Growth in Environmental Revolution 4.0  
4
1
2
3
Suwarni *, Elvir Munirovich Akhmetshin , Hilary Izuchukwu Okagbue , E. Laxmi Lydia , K.  
Shankar5  
1
Departement of Management, Universitas Dehasen Bengkulu, Bengkulu, Indonesia  
2
Kazan Federal University, Elabuga Institute of KFU, Elabuga, The Russian Federation  
3
Covenant University, Ota, Nigeria  
4
Professor, Vignan’s Institute of Information Technology(A), Department of Computer Science and Engineering, Visakhapatnam, Andhra Pradesh,  
India  
5
Department of Computer Applications, Alagappa University, India  
Received: 23/10/2019  
Accepted: 11/08/2020  
Published: 20/02/2020  
Abstract  
Nowadays, the world has transformed as an environmental revolution 4.0 eras. The revolution provides challenges and  
opportunities for future environmental development. In addition, digitalization, automation, and the use of artificial intelligence in  
economic activities will increase productivity and efficiency in modern production which also provides convenience and comfort for  
environmental issues. Digital technology also helps the development process in various fields including environmental improvments,  
ike global warming, acid rain, air pollution, urban sprawl, waste disposal, ozone layer depletion, water pollution, climate change and  
many more affect every human, animal and nation on this planet. In addition, the growth of various environmental activities and  
online-based buying and selling has not been accompanied by efforts to optimize state revenue and supervise tax compliance on these  
transactions. This is very important part, because digital transactions are cross country and it’s an aid for environmental changes.  
Keywords: Economic growth, Economic challenges, Industrial revolution  
Introduction1  
the implementation of the RPJMN (2015-2018), which is  
1
higher than the developing countries average at 4.5 percent  
per year. This achievement was supported by a variety of  
structural reform policies, including the policy to improve the  
investment climate, industrial competitiveness, logistics  
efficiency, export stimulus, tourism promotion and  
strengthening people's purchasing power (7-10, 12).  
The products of the data society are anything but difficult  
to see, with a cellphone in each pocket, a PC in each  
rucksack, and enormous change innovation frameworks in  
back workplaces all over. In any case, less perceptible is  
simply the data. 50 years after PCs entered standard society,  
the information has started to amass to the point where  
something new and exceptional is occurring. Not exclusively  
is the data is becoming quicker. The difference in scale has  
prompted a difference in state. The quantitative change has  
prompted subjective one. The sciences The 2015-2019  
Medium-Term Development Plan (RPJMN) implementation  
faced various challenges of global economic problems, such  
as the Greek debt crisis, Brexit, US policy uncertainty, for  
instance, trade protectionism and monetary policy  
normalization, China's economic rebalancing process, and the  
end of the commodity boom era. This has led to the slow  
recovery of world economic and trade growth after the 2008  
global financial crisis (1-6).  
The relatively high economic growth was driven by  
various sectors' growth. The processing industry grows an  
average of 4.3 percent per year. Furthermore, the agricultural  
industry grows an average of 3.7 percent per year, such as by  
improving the agricultural infrastructure to encourage the  
productivity. Meanwhile, the service industry is able to  
become the engine of economic growth, including the  
information and communication services industry and the  
transportation and warehousing industry which grew  
respectively by 8.8 and 7.4 percent per year. From the  
expenditure, the investment grows on average of 5.6 percent  
per year and becomes a major encouragement of economic  
growth. The supporting investment growth is mainly  
supported by improving the investment climate, infrastructure  
development, and investment services. Furthermore,  
household consumption is able to grow an average of 5.0  
percent per year. In addition, government consumption grew  
by an average of 3.0 percent per year amid the downward  
However, the domestic economy continued to grow at an  
average of 5.0 percent per year during the first four years of  
Corresponding author: Suwarni, Departement of  
Management, Universitas Dehasen Bengkulu, Bengkulu,  
Indonesia. E-mail: suwarni.h13@gmail.com.  
546  
Journal of Environmental Treatment Techniques  
2020, Volume 8, Issue 1, Pages: 546-550  
pressure on the state revenues. Meanwhile, both exports and  
imports of real goods and services grew at an average of 2.9  
percent per year (11, 13-16).  
inhibiting bureaucracy; (2) the system and the amount of tax  
revenue have not been sufficient enough; (3) infrastructure  
quality is still low especially connectivity and energy; (4) low  
quality of human resources and labor productivity; (5) low  
financial sector intermediation and shallow financial markets;  
2
Global Uncertainty  
In the future, the risk of uncertainty will still color the the  
(6) ineffective innovation system; (7) the poor of upstream-  
downstream linkages. The undeveloped processing industry  
has an impact on Indonesia's international trade performance.  
Currently, Indonesia's exports are still dominated by  
commodity exports with foreign transportation services,  
which has no differences from 40 years ago. The ratio of  
exports to GDP had declined continuesly from 41.0 percent  
in 2000 to 21 percent in 2018. As a result, Indonesia still has  
a current account deficit at 3 percent of GDP, while several  
peer countries have recorded a surplus. In the midst of tight  
global financial conditions, the increase of current account  
deficit is an obstacle for the acceleration of faster economic  
growth (31-34, 36).  
world economic growth. The economic growth and world  
trade are estimated to be stagnan with a slowing trend, in  
which each is projected at 3.6 and 3.8 percent per year, for  
the 2020-2024. The price of Indonesia's main international  
export commodities is also expected to decline, including  
coal and palm oil, along with the shifting of world demand to  
other products. Other uncertainties that need to be anticipated  
include the trade war, the economic slowdown in China, and  
the pressure of normalizing monetary policy that moves from  
the US to the European region (17-20).  
The macroeconomic stability must be maintained which  
is reflected as the controlled inflation and exchange rate,  
increased foreign exchange reserves and the current account  
which has the safe limits. During 2015-2018, the inflation  
reached an average of 3.3 percent per year, or within the  
target range. Meanwhile, in the exchange rate control and the  
current account deficit processing, the condition of  
Indonesia's payments balance is still relatively strong as  
reflected in the increase of Indonesia's foreign exchange  
reserves from USD111.9 billion in 2014 to USD120.7 billion  
on December 2018 (21-24).  
At the fiscal side, policies will continue to be directed at  
supporting growth and maintaining economic stability, while  
constantly pays attention to the medium-term fiscal  
sustainability. This is reflected in the debt ratio which is  
lower than 30 percent of GDP and the budget deficit and  
primary balance that continues to shrink and lead to  
positiveness in 2018. Through a strong and stable economic  
performance, the welfare of the community has increased.  
The expansion of the domestic economy is estimated to  
create more than 9 million additional jobs in 2015-2018. The  
unemployment rate fell to 5.34 percent in 2018 which was  
Economic growth is expected to increase by an average  
of 5.4 to 6.03 percent per year and GDP per capita growth of  
4
.0 +/- 1 percent, which is driven by the productivity,  
sustainable investment, improvements in the labor market,  
and the quality of human resource improvement. By this  
target of economic growth, the GNI per capita (Atlas  
Method) is expected to increase to USD5,780 - 6,160 per  
capita by 2024. Beside in maintaining the economic growth,  
price stability has to be a priority. The inflation rate is  
targeted at 3.0 ± 1 percent throughout 2020 - 2024. This  
macro condition has an impact on improving the  
development quality. The poverty and unemployment rate are  
expected to decrease to 6.5 - 7.0 percent and 4.0 - 4.6 percent  
in 2024. The level of the gini ratio decreases to 0.370 - 0.374  
in 2024, while the HDI is expected to increase to 75.54 in  
2
024, which indicates an improvement in the quality of  
human resources. To achieve the quality economic growth in  
the next five years, improving structural transformation is one  
of the main keys. The improvement in structural  
transformation was mainly driven by the revitalization of the  
manufacturing industry, while encouraging the development  
of other sectors through the modernization of agriculture,  
downstream mining, sustainable infrastructure development,  
and transformation of the service sector (35, 37).  
5
.94 percent in 2014. Besides, GDP per capita continued to  
increase from USD3,531 in 2014 to USD3,927 in 2018,  
which is equal to GNI per capita1 . (Atlas Method) USD  
3
,820, it is on the threshold of high-middle income countries.  
The poverty rate was reduced to one digit (9.82 percent in  
018) which was encouraged by the effectiveness of poverty  
alleviation programs. The Gini ratio had decreased from  
.414 in 2014 to 0.389 in 2018, which reveals the reduction  
2
4
Strengthening Domestic Demand and  
Diversification of Exports and External  
Stability  
0
of income inequality. Another development target is the  
Human Development Index (HDI) which had increased from  
In domestic demand, public consumption (household and  
LNPRT) is expected to grow by an average of 5.16 - 5.29  
percent per year. The increase of public consumption is  
driven by an increase in community income along with the  
creation of bigger and better jobs, price stability, and better  
targeted government social assistance. Government  
consumption will grow an average of 4.13 - 4.23 percent per  
year supported by an increase in government spending, both  
central and transfers to the regions, along with an increase in  
state revenues, especially tax revenues (38-40).  
6
8.9 in 2014 to 71.39 in 2018 (25-30).  
3
The Stagnan Economic Growth  
After the 1998 economic crisis, Indonesia's average  
economic growth was only around 5.3 percent per year, even  
in the last four years, Indonesia's economic growth tends to  
stagnate around 5.0 percent. This level of economic growth is  
difficult for Indonesia to upgrade to a high-income country or  
catch up with per-capita income of peer countries. The  
stagnant economic growth is mainly caused by the low level  
of productivity as the structural transformation does not go  
on. The inhibiting factors are: (1) overlapping regulations and  
The economic expansion of 2020-2024 will be mainly  
driven by investment increasing (gross fixed capital  
formation) which grows 6.88 - 8.11 percent per year. To  
achieve this target, private investment (foreign and domestic)  
547  
Journal of Environmental Treatment Techniques  
2020, Volume 8, Issue 1, Pages: 546-550  
will be encouraged through deregulation of investment  
procedures, synchronization and harmonization of licensing  
regulations, including increasing Indonesia's EoDB from rank  
maintain a downward trend of low and stable inflation in the  
medium term. In the period 2020-2024, inflation control  
policies are directed to: (i) Increasing productivity, especially  
after harvest and increase Government Food Reserves (CPP);  
(ii) Reducing average inflation and volatilitying in 10  
strategic food commodities; (iii) Reducing price disparities  
between regions with national average prices, and reducing  
inter-time price disparities; (iv) anchoring inflation  
expectations within the stated target; and (iv) improving the  
quality of statistics. During 2020-2024, the exchange rate was  
stable at its fundamental level to maintain export  
competitiveness. This can be achieved through the  
implementation of pre-emptive and ahead the curve monetary  
policies by the central bank and policy synergies which  
aimed to implement structural reforms in improving the  
competitiveness of the domestic economy (51-52).  
7
3 in 2018 to 40 in 2024. Increasing the investment is also  
driven by an increase of government investment, including  
BUMN, especially for infrastructure. This is indicated by an  
increase of infrastructure stock to 50.0 percent of GDP and  
capital expenditure to 2.3 - 2.8 percent in 2024. Increasing  
the investment will be aimed at increasing productivity,  
which will encourage investment efficiency increase (41).  
Overall, exports of goods and services grew an average of  
6
2
.21 - 7.67 percent per year. The exports of goods increase in  
020-2024 will be supported by the revitalization of the  
processing industry that encourages diversification of non-  
commodity export products, and reduces dependence on  
imports. The increase will also be driven by exports of  
services increase, particularly travel services, through the  
development of the tourism sector, while imports of goods  
and services grew by an average of 6.42 - 7.42 percent a year  
driven by increased domestic demand, especially investment.  
The improved performance of international trade will  
encourage the strengthening of external stability, which is  
characterized by an improvement in the current account  
deficit to 2.0 - 1.3 percent of GDP and an increase in foreign  
exchange reserves to USD161.1 - 184.8 billion in 2024 (42-  
6
Conclusion  
Economic growth in each region is expected to go hand  
in hand with national economic growth. Policies in each  
region are expected to be aligned with policies at the national  
level, while still taking into account the advantages and  
unique problems with the characteristics of each region. In  
the next five years, economic growth will not only focus on  
Java and Sumatra. The areas outside of Java and Sumatra are  
estimated to have become the center of new economic  
growth. To achieve the target of an average economic growth  
of 5.4 - 6.0 percent per year, an investment of Rp. 36,595.6 -  
4
6).  
5
Maintaining  
Fiscal  
and  
Inflation  
3
7,447.6 trillion is needed during 2020-2024. Overall the  
need total, the government and SOEs will contribute 11.6 -  
3.8 percent and 7.6 - 7.9 percent respectively, while the rest  
Sustainability  
The government is committed to maintain a healthy state  
budget while continuing to provide stimulus to the economy.  
The country's income is targeted to increase to an average of  
1
will be met by the public or private sector. To finance  
investment needs in 2020 - 2024, efforts are needed to deepen  
financial markets, especially non-banking, increase access to  
financial services (financial inclusion), and optimize  
financing alternatives. In addition, The aspect of economic  
development in the future is the environmental aspect.  
Climate change and the low environmental support could  
cause a negative impact on achieving economic growth  
targets. Therefore future development must be directed to  
maintain a balance between economic growth, reduction  
targets, emission intensities, the capacity of natural resources  
support, and the current and future capacity of the  
environment.  
1
3.7 - 14.8 percent of GDP per year, with the taxation ratio  
reaching an average of 11.7 - 12.7 percent of GDP per year.  
This was achieved through continuous improvement both in  
terms of administration and policy. From the administration  
side, the tax administration system will continue to be  
updated to improve the tax database and increase compliance.  
From the policy side, the government will continue to explore  
the potential for revenue, including potential originating from  
cross-border digital service activities and extensification of  
excisable goods. Meanwhile, this policy is also balanced with  
the role of policy taxation as an instrument of investment  
through the provision of fiscal incentives that support the  
activity of creating economic addition value (manufacturing,  
tourism, creative and digital economy) (47, 48).  
Acknowledgments  
The reported study was funded by RFBR, project number  
19-29-07037  
The stimulus of other economies is also carried out by  
sharpening state spending. Total state spending will average  
1
5.8 - 16.8 percent of GDP per year, with central government  
spending averaging 9.9 - 10.3 percent of GDP per year and  
TKDD of 6.0 - 6.5 percent GDP. The deficit will be kept  
below the legal allowable limit of (2.2) - (2.0) percent of  
GDP per year with a primary balance close to zero, at an  
average (0.3) - (0, 2) percent of GDP per year. With this  
composition, the debt ratio will be maintained below 30  
percent of GDP (49, 50).  
A low and stable inflation rate is expected to maintain  
purchasing power and encourage public consumption so that  
it can support the acceleration of quality economic growth.  
The Government and Bank Indonesia are committed to  
Ethical issue  
Authors are aware of, and comply with, best practice in  
publication ethics specifically with regard to authorship  
(avoidance of guest authorship), dual submission,  
manipulation of figures, competing interests and compliance  
with policies on research ethics. Authors adhere to  
publication requirements that submitted work is original and  
has not been published elsewhere in any language.  
Competing interests  
548  
Journal of Environmental Treatment Techniques  
2020, Volume 8, Issue 1, Pages: 546-550  
The authors declare that there is no conflict of interest  
that would prejudice the impartiality of this scientific work.  
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2020, Volume 8, Issue 1, Pages: 546-550  
network and thermal energy management. Applied Thermal  
Engineering. 2019 May 31:113825.  
3. Yu D, Wang J, Li D, Jermsittiparsert K, Nojavan S. Risk-averse  
stochastic operation of a power system integrated with hydrogen  
storage system and wind generation in the presence of demand  
response program. International Journal of Hydrogen Energy.  
48. Zafar MW, Shahbaz M, Hou F, Sinha A. From nonrenewable to  
renewable energy and its impact on economic growth: the role of  
research & development expenditures in Asia-Pacific Economic  
Cooperation countries. Journal of cleaner production. 2019 Mar  
1;212:1166-78.  
49. Widodo W, Sugiyanto FX. Tourism And Economic Growth  
Nexus In Indonesia: The Dynamic Panel Data Approach.  
Regional Science Inquiry. 2019;11(2):83-91.  
50. IBATOVA AZ, NEZHMETDINOVA FT, SITDIKOV FF.  
Global challenges for the agrarian sector of russian economy and  
its human resources. Revista ESPACIOS. 2018 Jun 30;39(26).  
51. Vorotnikov, A.A., Buinov, M.A., Bushuev, S.V., Poduraev, Y.V.  
and Chunihin, A.A., 2018. Standard Deviation from the Average  
3
2
019 Nov 29;44(59):31204-15.  
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3
3
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4. Jabarullah NH, Jermsittiparsert K, Melnikov PA, Maseleno A,  
Hosseinian A, Vessally E. Methods for the direct synthesis of  
thioesters from aldehydes: a focus review. Journal of Sulfur  
Chemistry. 2019 Sep 5:1-20.  
5. Jiao Y, Jermsittiparsert K, Krasnopevtsev AY, Yousif QA,  
Salmani M. Interaction of thermal cycling and electric current on  
reliability of solder joints in different solder balls. Materials  
Research Express. 2019 Aug 7;6(10):106302.  
Cutting Velocity as  
a Criterion for Comparing Robot  
Trajectories and Manual Movements of a Doctor for Performing  
6. Yu D, Ebadi AG, Jermsittiparsert K, Jabarullah NH, Vasiljeva  
MV, Nojavan S. Risk-constrained Stochastic Optimization of a  
Concentrating Solar Power Plant. IEEE Transactions on  
Sustainable Energy. 2019 Jul 10.  
7. Jermsittiparsert K, Sriyakul T, Sutduean J, Singsa A.  
Determinants of Supply Chain Employees Safety Behaviours.  
Journal of Computational and Theoretical Nanoscience. 2019 Jul  
Surgical Operations in Maxillofacial Surgery. International  
Journal  
of Mechanical  
Engineering and  
Robotics  
Research.2018;7(3): 319-323.  
52. Tikhonov AI, Sazonov AA, Novikov SV. Digital Aviation  
Industry in Russia. Russian Engineering Research. 2019 Apr  
1;39(4):349-53.  
1
;16(7):2959-66.  
8. Sriyakul T, Singsa A, Sutduean J, Jermsittiparsert K. Effect of  
Cultural Traits, Leadership Styles and Commitment to Change  
on Supply Chain Operational Excellence. Journal of  
Computational and Theoretical Nanoscience. 2019 Jul  
1
;16(7):2967-74.  
3
4
9. Sutduean J, Singsa A, Sriyakul T, Jermsittiparsert K. Supply  
Chain Integration, Enterprise Resource Planning, and  
Organizational Performance: The Enterprise Resource Planning  
Implementation Approach. Journal of Computational and  
Theoretical Nanoscience. 2019 Jul 1;16(7):2975-81.  
0. Singsa A, Sriyakul T, Sutduean J, Jermsittiparsert K.  
Willingness of Supply Chain Employees to Support Disability  
Management at Workplace: A Case of Indonesian Supply Chain  
Companies. Journal of Computational and Theoretical  
Nanoscience. 2019 Jul 1;16(7):2982-9.  
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4
4
1. Jermsittiparsert K, Chankoson T. Behavior of Tourism Industry  
under the Situation of Environmental Threats and Carbon  
Emission: Time Series Analysis from Thailand. International  
Journal of Energy Economics and Policy. 2019;9(6):366-72.  
2. Maseleno A, Huda M, Jasmi KA, Basiron B, Mustari I, Don AG,  
bin Ahmad R. Hau-Kashyap approach for student’s level of  
expertise. Egyptian Informatics Journal. 2019 Mar 1;20(1):27-  
3
2.  
3. Huda M, Maseleno A, Teh KS, Don AG, Basiron B, Jasmi KA,  
Mustari MI, Nasir BM, Ahmad R. Understanding Modern  
Learning Environment (MLE) in Big Data Era. International  
Journal of Emerging Technologies in Learning. 2018 May  
1
;13(5).  
4
4. Huda M, Maseleno A, Atmotiyoso P, Siregar M, Ahmad R,  
Jasmi K, Muhamad N. Big data emerging technology: insights  
into innovative environment for online learning resources.  
International Journal of Emerging Technologies in Learning  
(iJET). 2018 Jan 22;13(1):23-36.  
4
4
5. Alipour E, Alimohammady F, Yumashev A, Maseleno A.  
Fullerene C60 containing porphyrin-like metal center as drug  
delivery system for ibuprofen drug. Journal of Molecular  
Modeling. 2020 Jan 1;26(1):7.  
6. Namdarian A, Tabrizi AG, Maseleno A, Mohammadi A,  
Moosavifard SE. One step synthesis of rGO-Ni3S2 nano-cubes  
composite for high-performance supercapacitor electrodes.  
International Journal of Hydrogen Energy. 2018 Sep  
1
3;43(37):17780-7.  
4
7. Romprasert S, Jermsittiparsert K. Energy Risk Management and  
Cost of Economic Production Biodiesel Project. International  
Journal of Energy Economics and Policy. 2019;9(6):349-57.  
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