Green Economy Transition Strategy in Regional Development, 
A Study of Energy Efficiency and Social Inclusion in Makassar

Tahir, Ahmad Jumarding

Abstract

The transition toward a green economy in urban areas requires the integration of energy efficiency and social inclusion as two fundamental pillars of sustainable development. Makassar City, as the economic center of Eastern Indonesia, is experiencing increasing energy consumption, environmental pressures, and widening social disparities, necessitating a well-directed transition strategy supported by empirical evidence. This study aims to analyze the conditions and challenges of energy efficiency, identify the level of social inclusion within green development programs, and formulate an integrative strategy that can be implemented by local governments. A qualitative approach was employed through in-depth interviews, observations, and document analysis involving various stakeholders, including government institutions, environmental NGOs, academics, and vulnerable community groups. The findings indicate that energy efficiency programs in Makassar remain in the early stages of implementation and are dominated by top-down approaches, thereby failing to generate substantial changes within household and MSME sectors. Social inclusion is also found to be limited, as evidenced by the lack of participation from vulnerable groups in the planning and evaluation processes of green development initiatives. Moreover, weak cross-sectoral coordination has resulted in energy policies and social policies operating independently, hindering the effectiveness of a comprehensive green economy transition. The study formulates an integrative strategy combining institutional strengthening, expanded access to energy-efficient technologies, enhanced community energy literacy, and reinforced participatory mechanisms as pathways toward a low-emission and socially equitable regional development framework. These findings are expected to provide substantive contributions to local energy policy formulation and enrich the scientific literature on urban green economy transitions in Indonesia.

Keywords: Green Economy, Energy Efficiency, Social Inclusion, Energy Transition, Regional Development

Submitted: November 3, 2025, Accepted: December 5, 2025, Published: December 20, 2025

1. Introduction
Sustainable development in the modern era has become a fundamental principle in both national and regional governance frameworks due to increasing ecological pressures and the demand for integrating social equity within economic growth. Various global reports emphasize that developing countries face compounded challenges arising from rapid urbanization, high energy consumption, and worsening environmental degradation (UNEP, 2019; IPCC, 2022). In this context, the concept of a green economy has gained traction as an approach that integrates environmental sustainability, social equity, and economic development simultaneously, making it highly relevant for urban regions. The Government of Indonesia has also positioned the green economy as a structural transformation strategy to reduce energy intensity and decrease national carbon emissions, as stated in the Medium-Term National Development Plan and the Nationally Determined Contribution (NDC). Strengthening the green economy framework is expected to support the emergence of development models that are more resilient to climate and economic shocks. These dynamics underscore the urgency for regional governments in Indonesia to adopt sustainable energy transition approaches as an integral component of territorial development policies. Accordingly, academic studies focusing on green economy transition strategies—particularly through energy efficiency and social inclusion—are increasingly necessary.
Makassar City, as a major growth hub in Eastern Indonesia, demonstrates rapid development dynamics alongside environmental and social challenges that continue to intensify. Infrastructure expansion, industrial activities, transportation growth, and population increases have significantly raised energy consumption, which directly contributes to high urban carbon emissions (BPS Sulsel, 2023). The expansion of commercial areas and densely populated settlements has further fueled demand for electricity, placing additional pressure on the city’s energy system. At the same time, issues such as air pollution, environmental quality decline, and unequal access to basic services remain unresolved in a systematic manner. These empirical realities indicate that Makassar’s physical development has not fully aligned with sustainability principles emphasizing efficient resource utilization. Although the local government has initiated green development programs, their implementation is often hindered by systemic limitations and weak cross-sectoral integration. Consequently, there is an urgent need to examine an appropriate, context-specific, and practically implementable model for the city’s green economy transition.
Evidence shows that increasing energy consumption in urban areas like Makassar is often not accompanied by improvements in energy efficiency or the adoption of energy-saving technologies. Reliance on fossil-fuel-based energy remains pervasive across sectors, despite national policy directions encouraging energy diversification and emission reduction. Ideally, Makassar should develop into a productive yet low-emission city through the adoption of energy-efficient and environmentally friendly solutions. However, this aspiration has not been achieved due to limited incentives, low public energy literacy, and insufficient commitment to green technologies in buildings, public facilities, and industrial operations (IEA, 2020; Nugroho et al., 2021). Moreover, renewable energy programs in urban areas remain unevenly distributed and largely concentrated in specific government facilities. These conditions widen the gap between energy demand and energy management capacity, highlighting the need for adaptive energy efficiency strategies responsive to evolving urban consumption behaviors.
Beyond environmental and energy-related issues, Makassar also faces growing social disparities between groups with access to modern energy technologies and those who lack adequate access. This inequality is evident in the financial capability of households to adopt energy-efficient appliances, as well as in the limited access of vulnerable groups to energy assistance programs (Rochwulaningsih et al., 2020). Social inclusion becomes increasingly relevant because a green economy transition that neglects justice and equity risks marginalizing certain groups during structural shifts. Existing low-emission development programs in Makassar have yet to consistently incorporate the participation of vulnerable groups in planning and implementation. The absence of clear community engagement mechanisms reduces public ownership of green development agendas, leading to implementation challenges at the community level. Hence, the core problem in Makassar’s green transition involves not only technical energy issues but also social structures that have not been sufficiently inclusive.
Multiple approaches have been adopted at both national and regional levels to address energy and environmental transition challenges, including energy efficiency campaigns, the use of energy-saving lamps in public facilities, the promotion of environmentally friendly transport, and the application of green building standards. Policies such as Presidential Regulation No. 22/2017 on RUEN and the Low Carbon Development Indonesia program represent important steps toward enhancing national energy efficiency and reducing emissions. At the city level, Makassar has initiated efforts such as converting street lighting to LED systems, developing green corridors, and piloting renewable energy installations in select government facilities. However, these initiatives remain insufficient because their implementation is partial, unintegrated, and limited in community engagement (Burch et al., 2014; Zhao et al., 2020). Budget constraints, technical capacity limitations, and weak cross-sector coordination further hinder the effectiveness of these policies. As a result, the expected positive impacts of these initiatives have yet to materialize significantly, thereby necessitating a comprehensive evaluation to formulate a more structured and integrated approach.
Despite the growing body of research on green economy, energy efficiency, and social inclusion, significant gaps remain in the context of sub-national implementation. Most prior studies focus on technical aspects of energy efficiency or the economic impacts of renewable energy, while few simultaneously examine how energy efficiency can be integrated with social justice within a unified transition strategy. In the specific context of Makassar, analyses on energy–social inclusion integration are still limited to sectoral perspectives that fail to capture cross-issue linkages comprehensively (Zhou et al., 2022; Zhang et al., 2021). Yet, social characteristics, governance structures, and local development dynamics play essential roles in determining the success of energy efficiency programs and environmental sustainability efforts. The literature also indicates that community-based approaches have received insufficient attention in the design of green transition strategies in major Indonesian cities. This research gap highlights the need for in-depth studies that formulate an integrative model aligned with Makassar’s social structure and developmental context. Therefore, this study fills an important research gap scarcely addressed in previous literature.
The novelty of this study lies in its integrative approach that simultaneously examines energy efficiency and social inclusion in formulating a green economy transition strategy for Makassar City. Most existing studies tend to focus on a single aspect—either energy efficiency or social equity—without exploring the logical interconnection between the two within regional development frameworks. Yet, within green economy principles, these two dimensions reinforce each other and play determining roles in ensuring an inclusive energy transition (Sen, 1999; Meadowcroft, 2009). This research proposes a strategic perspective asserting that energy efficiency is not merely a technical issue involving reduced energy consumption but also a social challenge associated with access, affordability, and community participation. The integrative approach is expected to provide new insights into how environmentally friendly energy policies can be implemented while upholding social justice. Thus, this study contributes both theoretically and practically to academic discourse on green economy transition strategies in urban contexts. The novelty also stems from the study’s focus on Makassar—an area insufficiently explored within this integrative framework.
Energy efficiency in this study is understood as efforts to reduce energy use without compromising service quality, achieved through the adoption of energy-saving technologies, behavioral changes, and improved energy governance. Energy efficiency plays a crucial role in reducing carbon emissions, lowering operational costs, and strengthening national energy resilience, making it a central component of green development policies (Ang et al., 2015; IEA, 2020). In urban areas, energy efficiency spans sectors such as transportation, industry, buildings, and households. In Makassar, energy efficiency remains a challenge due to low adoption of green technologies and limited public energy literacy. In addition, local governments face constraints in integrating energy efficiency across development sectors. Therefore, a comprehensive understanding of the conditions and barriers to energy efficiency is essential to support the city’s green economy transition. This variable constitutes one of the main analytical focuses of this research.
Social inclusion is defined as the active involvement of all societal groups—including vulnerable populations—in development processes and their ability to benefit from development outcomes equitably. In the context of a green economy transition, social inclusion ensures that energy and environmental policies do not exclusively benefit privileged groups but also provide access and advantages to low-income households, women, persons with disabilities, and other marginalized populations (Silver, 2010). In Makassar, disparities in access to energy-efficient technologies and basic environmental services remain significant challenges. Limited community participation in development planning further increases the risk of inequity in green program implementation. Therefore, enhancing social inclusion becomes essential for creating a fair and low-emission development framework. This variable is analyzed to determine the extent to which green development programs in Makassar have involved and benefited diverse community groups, thereby informing strategies for more equitable policy design.
Based on the phenomena, issues, and research gaps described above, this study aims to thoroughly analyze the conditions and barriers to energy efficiency as well as the degree of social inclusion within green development initiatives in Makassar City. The study further seeks to formulate a green economy transition strategy that integrates effective energy utilization with principles of social justice. The urgency of this research is reinforced by mounting environmental pressures, the need for structural energy transformation, and the importance of policy reform toward low-emission regional development. Moreover, this study provides practical contributions to local governments in designing evidence-based, inclusive, and measurable policies. It also enriches academic literature on green economy and urban energy governance through an integrative analytical approach that remains uncommon in prior studies. The findings are expected to serve as a foundation for more effective and sustainable regional development programs in Makassar and other Indonesian urban areas.
2. Methodology

Research Location and Setting
This study was conducted in Makassar City, South Sulawesi Province, selected based on strategic, empirical, and socio-ecological considerations within the framework of sustainable development in Eastern Indonesia. As the economic and administrative hub of the eastern region, Makassar holds a central position in the dynamics of regional economic transformation, particularly in the growth of industrial, trade, and service sectors. Over the past decade, the city has experienced relatively stable economic growth, yet simultaneously confronted escalating challenges related to urbanization, increasing energy consumption, and environmental pressures. The intensification of economic activities and population mobility has contributed to rising energy demand, which in turn affects urban carbon emissions and other ecological stresses. These conditions make Makassar an appropriate location to examine strategies for transitioning toward a green economy oriented toward energy efficiency, emission reduction, and the strengthening of social inclusion in regional development planning. Thus, the study site was selected not only for its geographical relevance but also for the urgency of policy needs and empirical conditions requiring in-depth analysis.

Research Approach and Type
This study employs a descriptive qualitative approach to comprehensively explore the experiences, perceptions, and strategies of stakeholders involved in the implementation of the green economy transition in Makassar City. This approach is selected because it enables an in-depth understanding of policy dynamics, institutional structures, and the social context influencing the effectiveness of energy-efficiency programs and social-inclusion efforts. The research adopts a case study design, focusing the analysis on a specific geographical area with unique social, economic, and institutional characteristics. The case-study approach allows the researcher to examine phenomena holistically, identify patterns of interaction among actors, and understand empirical realities contextually. Research informants include local government officials responsible for environmental and energy planning, civil society organizations active in environmental and social advocacy, academics and energy experts, as well as community leaders involved in or affected by green-development initiatives. This composition of informants is intended to provide a comprehensive overview of the diverse perspectives shaping the city’s green-economy transition strategies.

Data Collection Techniques
Data were collected using three complementary techniques to ensure depth of information and reliability of findings. First, in-depth interviews were conducted with key informants who possess knowledge, experience, and decision-making authority related to energy and environmental policies in Makassar. Semi-structured interview guides were used to maintain direction while allowing flexibility for informants to articulate insights freely. Second, participatory observation was carried out to obtain direct insights into the implementation of energy-efficiency programs and social-inclusion initiatives, including visits to public facilities, small business units, and community activities involved in green-development programs. Third, document analysis was conducted by reviewing regional development plans, official government reports, publications from civil society organizations, and other relevant supporting documents. The combination of these three techniques allowed the researcher to gather rich data, both textual and contextual.

Data Analysis Technique
Data were analyzed using thematic analysis, a method for systematically identifying patterns, meanings, and categories within qualitative data. The first phase consisted of transcribing interviews and rewriting observation notes in detail to ensure that all relevant information was recorded. The second phase involved coding, in which segments of data were labeled according to preliminary categories related to energy efficiency, social inclusion, and green-transition strategies. These codes were then grouped into broader themes that captured relationships, trends, or recurring phenomena emerging from the field data. The next phase involved thematic interpretation, whereby the researcher linked the identified themes to existing theories, policies, and previous research findings to develop a comprehensive understanding of the studied phenomenon. The analysis process was iterative, meaning that the researcher continuously compared data with emerging interpretations to ensure that findings accurately reflected empirical realities.

Data Validity
To ensure the validity and credibility of the findings, the study employed source and method triangulation, which involved comparing information obtained from interviews with data from observations and documents. Triangulation was used to verify the consistency of findings and reduce potential interpretive bias. Member checking was also conducted by confirming preliminary interpretations or conclusions with informants to ensure that meanings conveyed were aligned with their perspectives. Additionally, expert discussions were held with academics or practitioners specializing in energy and sustainable development to assess the accuracy and relevance of the analysis. The study further implemented an audit trail by systematically documenting all stages of the research process—from data collection to analysis—so that each step could be traced if necessary. These measures were taken to enhance transparency, accuracy, and reliability, ensuring that the research results are scientifically accountable.

3. Empirical Findings/Result

1. Conditions and Challenges of Energy Efficiency in Makassar City
Initial research findings indicate that energy-efficiency programs in Makassar City are currently concentrated in the public sector, particularly through the use of energy-saving lamps in public facilities, street lighting, and government buildings, while adoption in the household and MSME sectors remains limited. Interviews with officials from the Makassar City Regional Development Planning Agency (Bappeda) emphasize that although emission-reduction targets have been outlined in regional development planning documents, implementation is often hindered by low public awareness. Field observations reveal that most MSMEs still rely on conventional electrical equipment with high energy consumption, largely because affordability is the main determining factor. This condition is in line with Dinda (2021), who asserts that adopting energy-efficient technologies requires substantial upfront costs, making them inaccessible to lower-income groups. Low public awareness of the green economy also slows the transformation of the urban energy sector. Thus, although energy-efficiency policies exist normatively, their implementation in Makassar still faces various structural barriers.

Analysis of the Makassar Long-Term Regional Development Plan (RPJPD) shows a strong orientation toward carbon-emission reduction, yet measurable indicators remain scarce, making it difficult to monitor the effectiveness of programs. This demonstrates that energy-efficiency policies at the regional level tend to emphasize symbolic commitments rather than measurable technical implementation. According to the IEA (2020), energy-efficiency indicators must be clearly formulated, covering targets for reducing energy intensity, adoption levels of energy-efficient technology, and carbon-emission reductions within a specified period. In the context of Makassar, the absence of operational indicators makes policies less effective in driving behavioral change among communities and businesses. Interviews with local academics highlight that the success of green energy policies requires an integration of technical regulations, fiscal incentives, and continuous public campaigns. Therefore, the formulation of an energy-transition strategy in the region must prioritize data-based measurement so that its effectiveness can be objectively evaluated.

Beyond policy issues, socioeconomic factors also pose significant challenges to implementing energy efficiency in Makassar. Field observations show that household energy-consumption behavior remains largely consumptive, with many households paying little attention to the use of energy-saving electrical appliances. This is influenced by limited energy literacy, lack of public education, and weak incentives for consumers to switch to energy-efficient technologies. According to Ang et al. (2015), the success of energy efficiency depends not only on technology availability but also on behavioral change through systematic education. Therefore, strategies that rely solely on technical aspects are unlikely to succeed without social interventions that strengthen public awareness. Thus, the challenges of energy efficiency in Makassar must be viewed as multidimensional issues involving regulatory, economic, and social-behavioral aspects.

Overall, the condition of energy efficiency in Makassar City reveals a significant gap between policy visions stated in official documents and actual implementation on the ground. These findings indicate that energy efficiency has not yet become a mainstream component of regional development, instead being treated as a sectoral add-on program. This aligns with Meadowcroft’s (2009) assertion that energy transitions require long-term political support and cross-sector integration to produce systemic change. Therefore, Makassar needs to draft a more holistic energy-efficiency strategy that focuses not only on technical aspects but also on economic incentives, public education, and measurable regulatory strengthening. Such an integrative approach will form an essential foundation for developing a sustainable green-economy transition strategy at the regional level.

2. The Level of Social Inclusion in the Implementation of Green Economic Development
Field research findings show that social inclusion in the implementation of green development in Makassar still faces various structural barriers. Interviews with local NGOs reveal that although the city government has launched green labor-intensive programs and environmentally friendly MSME empowerment initiatives, participation from vulnerable groups—such as women, persons with disabilities, and indigenous communities—remains very limited. Preliminary observations of empowerment activities show that beneficiaries are predominantly individuals with strong access to capital or social networks. This condition confirms the presence of inequality in the distribution of green-development benefits, as poor and marginalized groups do not receive equal access. Silver (2010) emphasizes that social inclusion extends beyond formal participation and must involve equitable access to development benefits. Therefore, green-development policies in Makassar still need improvement to become more responsive to the needs of vulnerable groups.
Makassar City development-planning documents recognize social inclusion as part of sustainable-development strategies; however, implementation remains top-down. Interviews with community leaders indicate that many vulnerable groups are not engaged from the planning stage but are only involved during program implementation. This reduces opportunities for communities to provide meaningful input for policy design, resulting in programs that often fail to meet their needs. According to Burch et al. (2014), effective green-economic development requires active community participation from planning through evaluation stages to enhance policy legitimacy. Thus, the low participation of vulnerable groups in Makassar demonstrates that social-inclusion principles have not yet been fully integrated into local development policy.
Limited social inclusion in green development in Makassar is also shaped by institutional and coordination constraints. Interviews with local academics indicate that social and environmental policies operate independently with no coordination mechanism ensuring that both aspects complement one another. Rochwulaningsih et al. (2020) argue that inclusive green development can only be achieved if strong institutional coordination exists across energy, environment, and social sectors. In Makassar’s context, local-government institutions have not yet been able to provide inclusive participatory spaces because bureaucratic priorities focus more on technical targets than social-equity dimensions. Therefore, an institutional design capable of integrating social aspects into green-economic-development strategies is needed.
Overall, the level of social inclusion in Makassar’s green economic development remains far from optimal, even though it is formally recognized within policy documents. This limitation weakens the legitimacy of green-development programs because vulnerable communities feel excluded from the development process. This condition aligns with findings by Hidayat and Nugroho (2023), which show that gender-responsive and participatory energy policies are more effective in reducing urban energy poverty. Thus, social-inclusion strategies in Makassar must strengthen community participation from the planning stage, expand access to marginalized groups, and improve cross-sectoral institutional coordination. Without improvements in the social-inclusion dimension, green economic development risks exacerbating inequality, contradicting the principles of sustainable development.

3. Integrative Strategies for Green Economic Transition in Makassar City
Initial research findings indicate that the strategy for green economic transition in Makassar is still fragmented between the energy sector and the social sector. Energy efficiency is primarily handled by technical agencies, while social inclusion falls under social and community empowerment institutions. The absence of an integrated coordination platform results in both aspects operating independently without complementing one another, thereby limiting the outcomes of green economic development. Interviews with Bappeda officials highlight that regional development planning lacks policy instruments capable of integrating technical energy aspects with social equity. This aligns with Meadowcroft’s (2009) emphasis on the importance of cross-sectoral governance for successful sustainable development. Without an integrative mechanism, green-transition policies face the risk of implementation failure due to their narrow focus on partial indicators. Thus, the need for a unified strategy that combines energy efficiency and social inclusion has become increasingly urgent.
Integrative green-transition strategies must be designed by considering institutional, regulatory, and community-participation dimensions. Interviews with academics reveal that one major weakness in Makassar’s green economic policies is the lack of coordination across government institutions, leading to policy overlap and weak implementation outcomes. Geels (2002), through the sustainable transition framework, explains that systemic transformations are possible only when institutional support and shifts in social behavior occur simultaneously. Therefore, integrative strategies in Makassar must involve synergy between the Environmental Agency, Bappeda, and civil-society organizations that connect with vulnerable groups. The involvement of multiple actors in collaborative governance will strengthen policy legitimacy and enhance implementation effectiveness. Thus, cross-sector coordination becomes the foundational pillar for building a sustainable green-transition strategy.
Beyond institutional aspects, integrative strategies must also prioritize participatory incentive schemes that encourage community and MSME involvement in adopting green technologies. Field observations show that MSMEs in Makassar struggle to access energy-efficient equipment due to high initial costs and the absence of dedicated financing schemes. Sen (1999) argues that social justice in development can only be achieved if vulnerable groups are provided meaningful access to resources and development benefits. Therefore, the city government can design green subsidies, micro-energy credit programs, or fiscal incentives for MSMEs adopting energy-efficient technologies. Such strategies would not only accelerate the energy transition but also broaden social inclusion by granting equitable access to small economic actors. Thus, incentive-based integrative strategies can bridge the gap between energy efficiency and social equity in regional development.
Conceptually, Makassar’s integrative green-transition strategy must combine three core pillars: cross-sectoral regulations that support energy efficiency, participatory incentive schemes that strengthen social inclusion, and community-capacity enhancement through community-based energy education. This approach aligns with Burch et al. (2014), who argue that transformative change requires simultaneous intervention in technological, institutional, and social dimensions. With this framework, Makassar can not only reduce carbon emissions through energy efficiency but also create more equitable and inclusive development for all community groups. In the long term, this strategy could position Makassar as a model for urban green economic development in Indonesia, while strengthening the region’s contribution to national carbon-reduction targets. Thus, integrative green-transition strategies in Makassar can serve as pioneering policies that combine technological innovation with social justice principles in sustainable development.

5. Discussion

Green Economy Transition Strategies in the Context of Energy Efficiency and Regional Governance
The discussion of research findings shows that the green economy transition strategy in Makassar City continues to face a number of structural challenges arising from weak governance, limited technical capacity, and the absence of measurable energy planning at the regional level. Interview findings from the Regional Development Planning Agency indicate that the implementation of green-economy policies remains largely normative and has not yet been fully translated into measurable energy-efficiency programs in strategic sectors. This condition is evident from the absence of specific indicators such as energy intensity, baseline public electricity use, or emission-reduction targets in the RPJPD, which should serve as operational guidelines for all local government agencies. Such a situation reflects that green-energy policy has not yet been positioned as a technical priority within the regional development-planning process, but rather as a conceptual commitment unaccompanied by adequate implementation instruments. Meanwhile, global literature emphasizes that the energy transition can only succeed when energy-efficiency indicators are clearly formulated and used as the basis for annual evaluation (IEA, 2020; Ang et al., 2015). Therefore, these findings indicate the need to strengthen the energy-planning component within regional strategic documents so that the green-economy transition can be carried out more systematically and measurably. The results affirm that energy efficiency remains a major weakness in Makassar’s green-economy transition framework and requires serious improvements at both policy and technical levels.

Furthermore, the research findings reveal that green-energy policies in Makassar tend to follow a top-down pattern dominated by central-government mandates, resulting in limited development of local initiatives for energy-efficiency innovation. Information from Bappeda shows that several energy-efficiency programs, such as street-lighting replacement and low-emission transportation initiatives, are implemented primarily as administrative directives rather than outcomes of local needs analysis based on accurate data. This pattern indicates a disconnection between national planning and local needs, making it difficult to evaluate program effectiveness comprehensively. Meadowcroft (2009) emphasizes that the energy transition requires strong local political commitment rather than short-term bureaucratic compliance. Similarly, Geels (2002) asserts that systemic changes in the energy sector require interactions between technological dynamics, institutional structures, and organizational culture, all of which must evolve simultaneously for transformation to proceed consistently. The research findings confirm this view, as the inability of local government to develop demand-driven initiatives prevents energy-transition strategies from becoming firmly rooted in the regional governance system. Thus, policy reorientation is needed so that Makassar is not merely an executor of national directives but also a producer of green-energy strategies that are contextually aligned with the region’s socio-economic characteristics.

The Social Inclusion Dimension in the Implementation of Makassar’s Green Economy
The research also shows that the level of social inclusion in Makassar City’s green-economy implementation remains low, particularly regarding the involvement of vulnerable groups in planning and decision-making processes. Thematic analysis reveals that the participation of the poor, women, persons with disabilities, and micro-enterprise actors remains limited to program implementation rather than policy formulation. This condition creates a gap between communities who directly experience the impacts of environmental change and those who design development policies, thereby increasing the potential for inequality in the distribution of benefits. Literature on equitable development emphasizes that the green transition must place social justice as a core component so that development agendas do not solely benefit groups with strong economic or political access (Silver, 2010; Zhou et al., 2022). The absence of community involvement in early planning stages limits public understanding of energy-efficiency programs, resulting in administrative rather than substantive participation. Accordingly, the research findings show that the sustainability of green-economy programs is determined not only by technical energy-efficiency factors but also by the extent to which these policies accommodate the aspirations, needs, and capacities of vulnerable groups. Thus, strengthening social inclusion is necessary to ensure that the green-economy transition in Makassar does not produce new forms of inequality in the future.

Limitations in social inclusion are also linked to the weak collaborative mechanisms between regional governments, civil-society organizations, and local communities in supporting the low-emission development agenda. Several environmental NGOs in Makassar reported that they are rarely involved in strategy formulation, despite being actors with strong community-organizing capacities, technical knowledge, and advocacy experience essential for the energy transition. The limited availability of collaborative spaces causes green-energy programs to run sectorally without integration that could expand social impacts more evenly. Burch et al. (2014) explain that green-transition governance requires multi-stakeholder participation so that policy adaptation and innovation can develop through interactions among government, private sector, and grassroots communities. The findings indicate that Makassar is still in the early stages of establishing inclusive and responsive collaborative practices for green-energy transition. This condition results in limited public understanding of green-development programs, and energy-saving behaviors are adopted mainly by certain groups. Therefore, strengthening social-inclusion mechanisms is an inseparable part of a just and sustainable green-economy transition strategy.

Institutional Coordination and Policy Integration in the Green-Economy Transition
The research further identifies that institutional coordination across government agencies is a critical determinant of the success of Makassar City’s green-economy transition strategy. Information from relevant local government offices shows that several agencies still implement their respective programs without a clear integrated coordination model. This institutional fragmentation leads to policy misalignment, program overlap, and the absence of integration between energy-efficiency and social-equity dimensions. Yet, transition-system theory highlights the importance of interactions across actors and governance levels in generating long-term structural change (Geels, 2002). The lack of inter-agency integration prevents energy policies from being linked to poverty-reduction policies, meaning that the benefits of energy-efficiency programs cannot directly reach low-income groups. This condition demonstrates that energy issues cannot be separated from social issues, making cross-sectoral approaches an urgent necessity for local governments. Thus, institutional-coordination weaknesses constitute one of the critical factors that must be addressed within the green-economy strategy.

Moreover, the research findings show that the absence of a formal collaborative platform between government agencies and other stakeholders has resulted in green-energy policies being implemented without a consistent strategic direction. Various energy-efficiency programs, such as the transition to LED street lighting or the development of low-emission transportation, are not accompanied by adequate cross-sectoral policy-integration mechanisms. Yet such integration is essential to ensure that energy policies not only reduce emissions but also provide broader social and economic benefits. Zhao et al. (2020) and Meadowcroft (2009) explain that successful energy governance depends on the ability of regional governments to develop adaptive and socially responsive coordination models. Without such mechanisms, green-development programs become partial, sectoral, and incapable of generating the systemic change required for a sustainable energy transition. Therefore, establishing a cross-sectoral coordination platform is a key step to ensuring that Makassar’s green-economy strategy is supported by a strong institutional foundation.

Direction of Integrative Strategies for the Green-Economy Transition in Makassar
Based on the research findings, Makassar’s green-economy transition strategy needs to be formulated through an integrative approach that simultaneously combines energy efficiency, strengthened social inclusion, and improved institutional governance. Energy efficiency should be directed not only toward reducing energy consumption but also toward expanding public access to affordable and easily adoptable energy-efficient technologies. Such integration is essential because the success of the energy transition depends on policy alignment with the social capacities of the target population. Strengthening social inclusion must be positioned as a main pillar to ensure that vulnerable groups are not left behind in the shift toward a more environmentally friendly energy system. This aligns with Sen’s (1999) view that development can only be effective when communities possess the capability to participate and benefit tangibly. Thus, integrative strategies should ensure that economic, social, and environmental objectives reinforce one another within a unified regional policy framework. The research provides empirical evidence that policy integration is an unavoidable step in building a just green-economy transition.

Additionally, the green-economy transition strategy must ensure the availability of policy instruments capable of driving behavioral change, strengthening community capacity, and creating an institutional environment that supports green-energy innovation. Incentive-based policies—such as subsidies for energy-efficient technologies targeting low-income households and micro-enterprises—can serve as initial steps to accelerate the adoption of efficient technologies. Community-based energy-education programs are also needed to build collective awareness of responsible energy use. Zhang et al. (2021) highlight that the success of energy transitions in urban areas is strongly influenced by public capacity to understand the benefits of environmentally friendly technologies. Therefore, the strategy must include efforts to enhance energy literacy and empower local communities so that programs run in a participatory manner. In this way, green-energy programs in Makassar will not rely solely on technical interventions but will also strengthen social capital as part of a sustainable transition strategy.

6. Conclusion

The green economy transition strategy in Makassar City indicates that efforts toward low-emission development are still at an early stage, with various challenges affecting the effectiveness of its implementation. Energy efficiency policies have not yet become a mainstream component of regional development, as their orientation still follows administrative mandates from provincial and national authorities. Meanwhile, social inclusion within green economic development programs remains suboptimal, marked by limited participation of vulnerable groups and the absence of participatory mechanisms that position communities as key actors in the transition process. In addition, cross-sectoral coordination has not functioned in an integrated manner, resulting in technical and social dimensions of green development failing to complement each other effectively.

Despite these constraints, several strategic opportunities exist to strengthen the transition toward a green economy at the regional level. Institutional strengthening through more integrative coordination can pave the way for more systematic energy planning that is adaptive to local needs. Public awareness regarding efficient energy use can also be enhanced through continuous education and energy literacy initiatives. Furthermore, designing strategies that promote incentive schemes for MSMEs and vulnerable groups can accelerate the adoption of energy-saving technologies and broaden the social benefits of green policies. Overall, Makassar has the potential to accelerate its transformation into a more sustainable city if technical, social, and institutional dimensions are strengthened simultaneously.

The Makassar City Government needs to reinforce its green economy transition policies by developing a measurable action plan with clear performance indicators for both energy efficiency and social inclusion. This planning document should be data-driven, responsive to local needs, and equipped with periodic evaluation mechanisms to ensure clearer and more consistent policy direction. Additionally, cross-sectoral coordination models need to be institutionalized through a permanent forum that brings together the Environmental Agency and the Regional Development Planning Agency, enabling systematic program synergy rather than fragmented implementation. Such institutional synergy is expected to form a foundation for accelerating the structural changes required in the green transition.

Efforts to strengthen the transition must also focus on enhancing the capacity of communities and local economic actors. The local government can encourage the adoption of energy-efficient technologies through incentive programs such as green subsidies, micro-energy credits, or partnerships with financial institutions that support environmentally friendly financing. Moreover, public participation spaces should be expanded through consultation forums, energy communities, and environmental education programs involving vulnerable groups to foster stronger collective awareness of sustainable development. By strengthening institutional, social, and technical aspects simultaneously, Makassar City has the potential to become a model urban area that successfully integrates energy efficiency and social equity within the framework of green development.

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