THE IMPACT OF SUPPLY CHAIN INTEGRATION DIGITALIZATION AND CIRCULAR PRODUCTION ON OPERATIONAL EFFICIENCY THROUGH GREEN INNOVATION IN INDONESIA’S OIL, GAS, AND ENERGY SECTOR (SECONDARY DATA FROM ANNUAL REPORTS AND SUSTAINABILITY REPORTS, 2020-2024)
DOI:
https://doi.org/10.36526/sosioedukasi.v15i1.7477Keywords:
Digitalization Supply Chain Integration, Circular Production, Green Innovation, Operational Efficiency, Oil and Gas, EnergyAbstract
The oil and gas sector is the backbone of national energy, yet it faces challenges in maintaining operational efficiency amidst the pressure of transitioning toward Net Zero Emission (NZE) 2060. This study analyzes the impact of Digital Supply Chain Integration (DSCI) and Circular Production (CP) on Operational Efficiency (OE) with Green Innovation (GI) as a mediating variable. The research focuses on Indonesian oil, gas, and energy companies from 2020 to 2024. The method is quantitative, using path analysis on secondary data from Annual Reports and Sustainability Reports. Results show that Digital Supply Chain Integration has no significant effect on Green Innovation or Operational Efficiency, indicating digital investments are not yet optimized for ecological and cost-efficiency goals. Conversely, Circular Production has a significant negative effect on Operational Efficiency, showing circular practices reduce operational costs through primary input savings. Further, Operational Efficiency has a significant positive effect on Green Innovation. The mediation test confirms that Green Innovation mediates the relationship between Circular Production and Operational Efficiency via eco-design-based innovation. These findings highlight efficiency as an essential foundation for energy companies to achieve sustainable green innovation.
References
Abdoos, M., Saifoddin, A., Yousefi, H., & Zahedi, A. (2025). Evaluating renewable energy strategies for operational efficiency in seaports. Elsavier (Fuel Communications), 24(100147), 12. https://doi.org/10.1016/j.jfueco.2025.100147
Adib, R. (2023). Renewables 2023 Global Status Report collection, Renewables in Energy Demand. In Paris: REN21 Secretariat.
Alabdullah, T. T. Y., & Kanaan-Jebna, A. (2023). The Mediating Role of Innovation on the Relationship between Supply Chain Management and Company Performance in the Kingdom of Bahrain. JOURNAL OF HUMANITIES, SOCIAL SCIENCES AND BUSINESS, 3(1), 160–176. https://doi.org/10.55047/jhssb.v3i1.845
Ali, A. A., & Mahmood, A. (2024). How Do Supply Chain Integration and Product Innovation Capability Drive Sustainable Operational Performance ? Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 16(277), 1–20. https://doi.org/https://doi.org/10.3390/su16010277
Andrea, A., Duarte, D., & Puroncid, G. (2025). Business Performance and Sustainability Outcomes Driven by Circular Economy , Eco-Innovation , and Sustainable Marketing. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(9858), 19. https://doi.org/https://doi.org/10.3390/su17219858
Atieh, A. A., & Abushaega, M. M. (2025). Achieving Supply Chain Sustainability Through Green Innovation : A Dynamic Capabilities-Based Approach in the Logistics Sector. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(5716), 20. https://doi.org/https://doi.org/10.3390/su17135716
Atieh Ali, A. A., Sharabati, A. A. A., Allahham, M., & Nasereddin, A. Y. (2024). The Relationship between Supply Chain Resilience and Digital Supply Chain and the Impact on Sustainability: Supply Chain Dynamism as a Moderator. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 16(7), 1–20. https://doi.org/10.3390/su16073082
Awow, C. D., Muguthu, J., & Njoka, F. (2025). Energy efficiency potentials in oil & gas operations: A case study of South Sudan’s petroleum industry. Elsavier (Energy Reports), 13(1673–1690), 18. https://doi.org/10.1016/j.egyr.2025.01.017
Baca-neglia, M., Barreto-pio, C., Virú-vásquez, P., Badillo-rivera, E., Césare-coral, M. F., Castro-pantoja, J. B., Sotelo-méndez, A., Saldivar-villarroel, J., Arroyo-paz, A., Cruz-martinez, R. V., Meza, E. N., & Quispe-ojeda, T. C. (2025). Industry 4 . 0 , Circular Economy and Sustainable Development Goals : Future Research Directions Through Scientometrics and. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(6468), 21. https://doi.org/https://doi.org/10.3390/su17146468
Bagaskara, A., Ramadhani, D., Makahekum, S. A., & Swadana, W. A. (2024). Policy Assessment: Renewable Energy Development in Indonesia’S Power Sector Climate Policy Implementation Check. Institute for Essential Services Reform (IESR), 1(2), 1–18.
Chen, C., Pinar, M., & Román-Collado, R. (2024). Green Innovation and Energy Efficiency: Moderating Effect of Institutional Quality Based on the Threshold Model. In Environmental and Resource Economics Springer (Vol. 87, Issue 12). Springer Netherlands. https://doi.org/10.1007/s10640-024-00902-w
Cheng, W., Li, Q., Wu, Q., Ye, F., & Jiang, Y. (2024). Digital capability and green innovation: The perspective of green supply chain collaboration and top management’s environmental awareness. Heliyon, 10(11), 20. https://doi.org/10.1016/j.heliyon.2024.e32290
Dinita Setyawati, D. S. (2024). Indonesia’s expansion of clean power can spur growth and equality (Raising renewables ambition and fair allocation of renewable energy projects can remediate emissions from fossils and help make transition more equitable.). EMBER - ENERGY. Org, 1(August), 28.
Freije, I., de la Calle, A., & Ugarte, J. V. (2022). Role of supply chain integration in the product innovation capability of servitized manufacturing companies. Technovation, 118, 102216. https://doi.org/10.1016/j.technovation.2020.102216
Ghazanfari, A. (2023). An Analysis of Circular Economy Literature at the Macro Level, with a Particular Focus on Energy Markets. Multidisciplinary Digital Publishing Institute (MDPI) Energies, 16(1779), 24. https://doi.org/10.3390/en16041779
Govind, M., Kapoor, S., Parhi, S., Govind, M., & Pandey, S. (2025). Operationalizing sustainability in pharmaceuticals : Green supply chain metrics for circular economy. ELSAVIER (Sustainable Future ), 9(100413), 13. https://doi.org/10.1016/j.sftr.2024.100413
Hejazi, M. T., & Habani, M. A. (2024). Impact of green supply chain integration management on business performance : a mediating role of supply chain resilience and innovation the case of Saudi Arabian manufacturing sector. Cogent Business & Management Taylor & Francis, 11(1), 20. https://doi.org/https://doi.org/10.1080/23311975.2024.2392256
Hendrawan, A. S., & Suhartini, D. (2025). Green Innovation Pada Kinerja Perusahaan Manufaktur di Indonesia? Jambura Economic Education Journal, 7(1), 169–185. https://doi.org/https://ejurnal.ung.ac.id/index.php/jej/index
Hu, Y., Waite, M., Patz, E., Xia, B., Xu, Y., Olsen, D., Gopan, N., & Modi, V. (2023). A data-driven approach for the disaggregation of building-sector heating and cooling loads from hourly utility load data. Elsavier (Energy Strategy Reviews), 49(101175), 11. https://doi.org/10.1016/j.esr.2023.101175
IRENA. (2023). Socio-economic footprint of the energy transition: Indonesia. IRENA - International Renewable Energy Agency.
Javed, A., Subhani, B. H., Javed, A., & Rapposelli, A. (2024). Accessing the efficacy of green growth, energy efficiency, and green innovation for environmental performance in top manufacturing nations in the framework of sustainable development. In Springer (Quality and Quantity) (Vol. 58, Issue 6). Springer Netherlands. https://doi.org/10.1007/s11135-024-01918-6
Jusoh, A., Mahmood, R., Ahmad, Z., & Zahari, A. S. M. (2021). Digital Supply Chain and Business Performance: The Case of the Oil and Gas Industry. Management and Business, 16(3), 13.
Kementrian ESDM. (2024). Handbook Of Energy & Economic Statistics Of Indonesia (2024th ed.). Kementerian ESDM.
Khanra, S., Kaur, P., Joseph, R. P., Malik, A., & Dhir, A. (2022). A resource-based view of green innovation as a strategic firm resource: Present status and future directions. Wiley (Business Strategy and the Environment), 31(4), 20. https://doi.org/10.1002/bse.2961
Koval, V., Abramovi, N., Ðurovi, S., Crvenica, D., & Arsawan, I. W. E. (2025). Fostering Technology Adoption and Management Advancements in Environmental Performance : Mediation of Circular Economy and Sustainability-Oriented Innovation. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 27(1848), 18. https://doi.org/https://doi.org/10.3390/su17051848
Li, X., Wang, R., Nan, M., & Shi, Y. (2025). Research on the Impact of Green Supply Chain Integration on Enterprises’ Green Innovation. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(7), 27. https://doi.org/10.3390/su17072859
Lindahl, E., Dahlin, J. E., & Bellgran, M. (2023). A framework on circular production principles and a way to operationalise circularity in production industry. Cleaner Production Letters, 4(April), 100038. https://doi.org/10.1016/j.clpl.2023.100038
Liu, Z., & Wang, M. (2022). Improving Circular Supply Chain Performance through Green Innovations: The Moderating Role of Economic Policy Uncertainty. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 14(16888), 18. https://doi.org/10.3390/su142416888
Ogiemwonyi, O., Alam, M. N., Hago, I. E., Azizan, N. A., Hashim, F., & Hossain, M. S. (2023). Green innovation behaviour: Impact of industry 4.0 and open innovation. Heliyon, 9(6), 17. https://doi.org/10.1016/j.heliyon.2023.e16524
Pambudi, N. A., Firdaus, R. A., Rizkiana, R., Ulfa, D. K., Salsabila, M. S., Suharno, & Sukatiman. (2023). Renewable Energy in Indonesia: Current Status, Potential, and Future Development. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 15(2342), 29. https://doi.org/10.3390/su15032342
Rachmat, E. P., Satria, A., & Amanah, S. (2025). Achieving Sustained Competitive Advantage in Indonesia’s Construction Sector: An Integrated Decarbonization Strategy. Journal Of Management, Accounting, General Finance And International Economic Issues (MARGINAL), 4(4), 931–941. https://doi.org/10.55047/marginal.v4i4.1798
Setyadi, A., & Pawirosumarto, S. (2025). Embedding Circular Operations in Manufacturing : A Conceptual Model for Operational Sustainability and Resource Efficiency. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(6737), 1–29. https://doi.org/https://doi.org/10.3390/su17156737
Sisdwinugraha, A. P., Mendrofa, M. J. S., Hapsari, A., Nabighdazweda, M. D., Wijaya, D. F., Aji, P., Padhilah, F. A., Maswan, P., Bintang, H. M., Wiranegara, D. R. Y., Surya, I. R. F., Sari, R. P., Adiatma, J. C., & Firdausi, S. N. (2024). Indonesia Energy Transition Outlook 2025: Navigating Indonesia’s Energy Transition at the Crossroads: A Pivotal Moment for Redefining the Future. Institute for Essential Services Reform (IESR), 5(1), 114.
Tan, L., & Li, K. (2025). How Can Digital Transformation Drive a Green Future ?— Intermediary Mechanisms for Supply Chain Innovation : Evidence from Chinese A-Share Listed Companies. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(8298), 28. https://doi.org/https://doi.org/10.3390/su17188298
Tong, X., Zhang, G., Wang, Z., Tian, Z., Niu, J., & Wen, Z. (2023). Global oil and gas potential and distribution. In Earth Science Frontiers (Vol. 21, Issue 3). https://doi.org/10.13745/j.esf.2014.03.001
Vogiantzi, C., & Tserpes, K. (2023). On the Definition, Assessment, and Enhancement of Circular Economy across Various Industrial Sectors: A Literature Review and Recent Findings. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 15(23), 29. https://doi.org/10.3390/su152316532
Wang, B., & Hao, H. (2025). Process Integration in Optimising the Oil and Gas Supply Chain. Journal of Sustainable Development of Natural Resources Management, 1(1), 1–20. https://doi.org/10.13044/j.sdnarema.d1.0556
Wang, Z., Fan, Z., Zhang, X., Liu, B., & Chen, X. (2022). Status, trends and enlightenment of global oil and gas development in 2021. Petroleum Exploration and Development, 49(5), 19. https://doi.org/10.1016/S1876-3804(22)60344-6
Younes, S., Adedokun, M. W., Alzubi, A. B., & Aljuhmani, H. Y. (2025). Impact of Supply Chain Management on Energy Transition and Environmental Sustainability : The Role of Knowledge Management and Green Innovations. Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(9249), 25. https://doi.org/https://doi.org/10.3390/su17209249
Yusuf Hasan Habibie, E. I., & Mi. (2025). Oil And Gas Security Indonesia. 8th Oil and Gas Security Network Forum, 1(April), 1–13.
Zhang, L., & Wang, J. (2023). Intelligent safe operation and maintenance of oil and gas production systems: Connotations and key technologies. KeAi (Natural Gas Industry B), 10(3), 11. https://doi.org/10.1016/j.ngib.2023.05.006
Zhang, S., Niu, Y., Zhang, J., Li, J., Wang, S., & Guan, Y. (2025). Effects of Supply Chain Digitization on Different Types of Corporate Green Innovation : Empirical Evidence from Double Machine Learning ( DML ). Multidisciplinary Digital Publishing Institute (MDPI) SUSTAINABILITY, 17(7509), 1–23. https://doi.org/https://doi.org/10.3390/su17167509
Zhou, S. (2023). Energy efficiency 2023. Dictionary of Ecological Economics: Terms for the New Millennium, 1(1), 186. https://doi.org/10.4337/9781788974912.E.94
.png)
