The 21st conference of the Indonesian Regional Science Association held in Bandar Lampung on 6 and 7 July 2026. About 230 were selected for presentation in the parallel sessions and around 30 submissions for poster presentations. From these, 3 papers were selected to receive the IRSA-BAPPENAS best papers awards, and 3 papers for the IRSA-SMI best papers awards (PT Sarana Multi Infrastruktur (Persero).

Paper 1, recipient of the BAPPENAS best papers awards. Imbalance consequences: the effect of minimum wage on firms’ green efficiency in Indonesia
Iqram Ramadhan Jamil (FEB Universitas Padjadjaran and Research Institute of Socio-Economic Development/RISED)

This study examines the relationship between minimum wages and the green efficiency of manufacturing firms in Indonesia. While minimum wage policies are intended to improve workers’ welfare, their association with firms’ environmental performance remains largely unexplored. Using firm-level panel data from the Indonesian Annual Manufacturing Survey for 2010–2015, this study first estimates green efficiency using a Slack-Based Measure Data Envelopment Analysis (SBM-DEA) model that incorporates greenhouse gas emissions as an undesirable output. The estimated efficiency scores are subsequently related to provincial minimum wages within a fixed-effects framework. The findings reveal a negative relationship between minimum wages and green efficiency among manufacturing firms. However, substantial heterogeneity exists across firm sizes. The negative relationship is concentrated among small and medium-sized firms, whereas large firms exhibit a small positive relationship. These patterns suggest that smaller firms may face greater challenges in adapting to rising labor costs, while larger firms possess stronger financial and technological capacities to adjust. The study highlights the importance of considering firm heterogeneity when evaluating the environmental implications of labor market regulations and designing policies that balance worker welfare with environmental sustainability.

This paper is co-authored with Wisnu Wardana (FEB Universitas Airlangga and RISED) and Mareta Hanum (FEB Universitas Airlangga)

Paper 2, recipient of the SMI best papers awards. Beyond the port: maritime market access and local industrialdevelopment in Indonesia
Indah Degree Karimah (Ministry of Transportation and FEB Universitas Indonesia)

This study estimates the causal impact of maritime infrastructure expansion on local industrial development in Indonesia, the world’s largest archipelago. Using a weighted long-difference design for 2005–2024 and constructing a maritime market access index, we address endogenous port placement by focusing on “incidentally treated” hinterland villages located in midline buffers between existing and new seaports. Employing entropy balancing to account for non-
random selection, we find that improved maritime access promotes local industrial development, measured by changes in small- and medium-sized industries. A one-standard-deviation improvement in maritime access increases SMI growth by 10.9 percent and raises the probability of industrial entry and diversification. These effects are concentrated in resource-based sectors, such as food processing and woodworking, rather than in more complex manufacturing activities. Benefits are also driven by the more developed region, consistent with agglomeration shadow effects. Local basic infrastructure and market conditions are likely to be operative channels of impact.

This paper is co-authored with Prani Sastiono (LPEM FEB Universitas Indonesia) and Muhammad Halley Yudhistira (LPEM FEB Universitas Indonesia)

Thumbnail photo by Simon Spring/Unsplash