The HDI-EPI Paradox: A Multi-Method Analysis of Sustainable HRM Implications for Indonesia's Development Challenge

Iwan Ardiansyah (1) , Taufiq Rahmat (2)
(1) Department of Management, Al-Ghifari University, Bandung, Indonesia.,
(2) Department of Management, Al-Ghifari University, Bandung, Indonesia
https://doi.org/10.53675/icosei.v1i1.1661
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Issue
Vol. 1 No. 1 (2025)
Submitted
2025-08-27
Published
2025-10-07
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Abstract

While sustainable development theory suggests positive relationships between human development and environmental performance, emerging economies often face critical trade-offs. This study examines HDI-EPI relationships across countries, focusing on Indonesia's unique ASEAN position to derive strategic HRM implications.We employed integrated five-method analysis using HDI and EPI data from 18 countries: correlation analysis, cluster analysis, regression modeling, comparative analysis, and efficiency analysis. Countries were classified into six performance-based clusters.Results reveal strong HDI-EPI correlation (r = 0.897, p < 0.001) globally. However, Indonesia emerges as significant outlier in "Double Challenge" cluster with medium HDI (0.728, #113 globally) but critically low EPI (33.6, #163 globally). Within ASEAN, Indonesia ranks 6th of 7 countries, showing 21.3% EPI deficit versus only 7.7% HDI gap below regional average. Regression analysis indicates Indonesia underperforms EPI predictions by 2.3 points, suggesting systematic environmental underinvestment rather than resource constraints.Indonesia's HDI-EPI paradox represents unsustainable development where economic growth occurred at environmental expense. This creates urgent HRM transformation imperatives: developing green skills frameworks, creating sustainable leadership competencies, designing environmental behavior interventions, and establishing people-planet performance metrics. The study contributes novel analytical framework for sustainable HRM research in emerging economies and provides actionable insights for organizations navigating sustainability transitions. Countries in "Double Challenge" clusters require differentiated HRM strategies simultaneously addressing human development gaps while rapidly building environmental capabilities.

Authors

Iwan Ardiansyah
Department of Management, Al-Ghifari University, Bandung, Indonesia.
Taufiq Rahmat
Department of Management, Al-Ghifari University, Bandung, Indonesia

How to Cite

The HDI-EPI Paradox: A Multi-Method Analysis of Sustainable HRM Implications for Indonesia’s Development Challenge. (2025). Proceeding International Conference On Sustainable Environment And Innovation (ICOSEI), 1(1). https://doi.org/10.53675/icosei.v1i1.1661

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