Beyond Growth: Local Government's Role in Building Sustainable and Inclusive Local Economies

Abstract

The conventional focus on Gross Domestic Product (GDP) growth is increasingly inadequate for addressing persistent global challenges such as socioeconomic inequality and environmental degradation. This research investigates the pivotal role of local governments in leading the transition toward a sustainable and inclusive economic model, moving deliberately "beyond growth." Employing a mixed-methods single-case study focused on Depok City, West Java, Indonesia, the study analyzes how a rapidly urbanizing municipality operationalizes this new economic paradigm. Findings reveal that the Depok government has successfully integrated Circular Economy initiatives (e.g., waste management) and targeted UMKM support through participatory programs, demonstrating efficacy in environmental stewardship and economic access for marginalized groups. Crucially, however, the quantitative analysis shows that despite high economic growth and low poverty rates, the Gini ratio remains stagnant, empirically confirming the study's central thesis: growth alone does not guarantee equity. The discussion argues that the greatest constraint to achieving true economic inclusion in Depok is not policy scarcity but a gap in internal governance capacity, specifically the lack of robust cross-sectoral coordination necessary to translate policy vision into equitable wealth distribution. This study provides empirical evidence from an emerging economy, reinforcing the theoretical necessity of local governance reform, emphasizing substantive participation, and advocating for policy measures that actively prioritize equity alongside environmental sustainability.