Performance Evaluation, Satisfaction, and Loss Aversion as Determinants of Local Commitment to Sustainability Programs in West Java and North Sulawesi

Sustainability programs at the local level often face difficulties in building long-term community commitment, despite being central to Indonesia’s development agenda. Existing studies primarily focus on technical and governance aspects. At the same time, psychological mechanisms such as performance evaluation, satisfaction, and loss aversion remain underexplored and are rarely integrated in a single model, especially in comparative settings across regions. This study examines how program performance evaluation, citizen satisfaction, and loss aversion collectively influence local commitment to sustainability programs in Indonesia. A mixed-methods design was employed in West Java and North Sulawesi, involving a survey of 300 local actors, as well as semi-structured interviews and focus group discussions. Quantitative data were analysed using PLS-SEM; qualitative data were examined through thematic analysis. The structural model explains 27% of the variance in satisfaction, 22% in loss aversion, and 48% in local commitment (Q² = 0.182; 0.157; 0.311). Performance evaluation has no significant direct effect on commitment (β = 0.180; p = 0.062), but significantly increases satisfaction (β = 0.520; p < 0.001) and reduces loss aversion (β = −0.410; p < 0.001). Satisfaction positively affects commitment (β = 0.390; p = 0.008), while loss aversion has an adverse effect (β = −0.280; p = 0.041). Indirect effects through satisfaction (β = 0.200; p = 0.004) and loss aversion (β = 0.110; p = 0.032) are significant, indicating dual mediation. Qualitative findings corroborate these mechanisms, highlighting the centrality of perceived benefits, procedural fairness, and managed risks in sustaining community commitment.