Measuring The Impact of Special Economic Zone (SEZ) Arun Lhokseumawe on the Sustainability of its Peripheral Area

Manik Priandani, Djoko Mulyo Hartono, Tri Edhi Budhi Soesilo, Raldi Hendro Koestoer, H. F. Habiburrachman Alfian

Research output: Contribution to journalArticlepeer-review


The impact of special economic zones (SEZ) on the sustainability of their peripheral areas is rarely measured and discussed. This research was conducted to determine the sustainability level of the Arun Lhokseumawe SEZ gen-erated to its surrounding area before and after the exhaustion of its natural gas resources. The statistical matching method and the Moran index used for the analysis involved 14 sustainability variables representing social, econom-ic, and environmental dimensions. The method used includes building the sustainability index using village level data, statistical matching to find evidence of impact, and determination of the Moran index to describe its spatial patterns. Additionally, the index was used to describe the policy implication based on the current SEZ sustainability level. The results show that there is no upward trend in the sustainability index after three years of operation, except for an increase in the SEZ (inside) in 2018 which then declines again in 2021. This figure is lower than before natural gas depletion. It was found that, in 2008, the spatial pattern of the high sustainability index mainly spread to areas outside the Arun Lhokseumawe industrial area. Meanwhile, in 2021, the spatial pattern of a high sustainability index clustered near the Arun Lhokseumawe special economic zone.

Original languageEnglish
Pages (from-to)87-100
Number of pages14
JournalEnvironmental Research, Engineering and Management
Issue number1
Publication statusPublished - 5 Apr 2024


  • Moran index
  • special economic zones
  • statistical matching
  • sustainability index


Dive into the research topics of 'Measuring The Impact of Special Economic Zone (SEZ) Arun Lhokseumawe on the Sustainability of its Peripheral Area'. Together they form a unique fingerprint.

Cite this