Pentahelix Model for Eco-Industrial Development: A Collaborative Policy Approach Agus Dwi Wicaksono 1* , Devi Agustina 1 , AR. Rohman Taufiq Hidayat 1,2 1 Urban and Regional Planning Department, Faculty of Engineering, Brawijaya University, Malang 65145, Indonesia 2 Graduate School of Global Environmental Studies, Kyoto University, Kyoto 606-8501, Japan Corresponding Author Email: agusdwi@ub.ac.id https://doi.org/10.18280/ijsdp.180906 ABSTRACT Received: 23 March 2023 Revised: 25 July 2023 Accepted: 23 August 2023 Available online: 26 September 2023 Currently, industrial sector has been facing challenges in terms issues where the industrial activities impact the environment. The industrial sector in Ngawi Regency is one of the sectors that contributes the fourth largest to the region's economy. This study identifys the factors that influence industrial sectors namely the aspects of revenue growth, sales growth, and production growth by using multiple linear regression analysis and applying Pentahelix Model as a collaboration model towards eco-industrial development. The findings of the study revealed the variables which significantly influenced the aspect of revenue growth namely raw material, capital, and infrastructure. The production growth is affected by raw materials, capital, marketing, production, and institutional. Supported by the result of industrial development factors, Pentahelix synergy is expected to be applied in the practice of eco- industrial development based on the roles of each actor in Pentahelix. Keywords: eco-industrial development, industrial development factors, Pentahelix Model, collaborative policies, sustainability 1. INTRODUCTION In developing countries, industrial sector has been the mainstay sector which drives the economy [1]. The industrial sector is the first priority in the development of a region. It leads and supports other supporting sectors. It is one of the sectors that greatly contribute to the gross domestic product (GDP) in a region [2]. Industrial sector is strategic and important to realize development goals. Therefore, industrialization is more aimed at supporting the development of industry to mobilize and increase the regional economic growth rate and open wide opportunities for employment [3]. To reach the purpose, good cooperation between economic sectors is needed so that it can have an impact on the activities of the production sector which has attractiveness and support in each sector [4, 5]. By industrial sector, it is expected that a stronger regional economic structure can be achieved. On the other side, industrial sector development is currently facing challenges where industrial activities are potential in causing new problems such as environmental damage, social problems, disturbance in sustainable development process [6, 7]. Industrial activity is one of the main causes of environmental degradation which negatively impacts on the life of surrounding community [7, 8]. This environmental problem includes toxic industrial waste, excessive natural resources exploitation, and social problems such as poverty and social disparity [9, 10]. Eco-Industrial Development is an industrial development concept that focuses on achieving sustainable economic growth by minimizing negative impacts on the environment [11]. One of the strategies is collaboration between companies, governments, communities and other organizations that must collaborate to create a sustainable industrial ecosystem. This collaboration involves exchanging information, resources and knowledge to encourage innovation and best practices in reducing environmental impact [12]. Industrial sector in Ngawi Regency, preceded by agriculture, construction, and trade, is one of the sectors with fourth largest contribution to the economy [13]. The contribution of industrial sector in Ngawi Regency increases every year. Based on the Central Bureau of Statistic of Ngawi Regency in 2022, the contribution of industrial sector to the gross regional domestic product (GRDP) was 8.80% in 2018, then increased to 8.94% in 2019. In 2020, it reached 9.02% which decreased to 8.73%. The decrease was caused by the COVID-19 pandemic which also impacted sectors. In 2021, the GRDP of industrial sector of Ngawi Regency increased to 9.31%. The data showed that the industrial sector has become one of the leading sectors in Ngawi Regency that boosts the surrounding economy of the community due to its considerable contribution. The food and drink industries are the leading industries with largest contribution, followed by industries of timber, wood and cork products, bamboo woven products, rattan and the like, and tobacco processing (Directory of Small and Medium Enterprises of Ngawi Regency, 2016). The three types industry is potential to develop due to their large contribution to GRDP. The Pentahelix Model is a synergy of 5 main actors of sustainable development, namely government, institutions, communities, media and business or the business world to mutually build and develop the industry [14]. In order to achieve the optimal results in the sustainable industrial development, synergy and collaboration between the 5 actors are needed. This study aims at identifying the influential factors in the industrial sector development. The findings of the study can be used to know the influential aspects in the development of industry. This study also formulates the Pentahelix Model in industrial development. The model is expected to be able to be applied in the sustainable industrial development in Ngawi Regency. International Journal of Sustainable Development and Planning Vol. 18, No. 9, September, 2023, pp. 2673-2683 Journal homepage: http://iieta.org/journals/ijsdp 2673