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Education functions as a central pillar in shaping the quality of human capital, encompassing knowledge, skills, and health, and thus plays a significant role in influencing Indonesia’s Human Development Index (HDI). This study employs a qualitative literature review by examining key theoretical frameworks in the economics of education, such as Becker’s Human Capital Theory and Schultz’s investment model, supported by relevant national empirical data. The findings indicate a very strong relationship between education and HDI improvement. This is reflected in a correlation coefficient of 0.943 between education expenditure and Indonesia’s HDI during the 2004–2023 period. The results suggest that an increase in education spending of IDR 1 trillion has the potential to raise the HDI by approximately 0.002 points. These findings confirm that investment in education not only enhances the quality of human resources but also directly contributes to sustainable national development. Despite the positive trend and the achievement of an HDI score of 75.02 in 2024, several challenges persist, particularly regional disparities, unequal access to education, and quality gaps between urban and rural areas. Therefore, more inclusive education policies, equitable access, and strengthened vocational education and training are essential to ensure that the benefits of human capital development are distributed evenly across all regions of Indonesia.

The purpose of this study is to investigate the factors that lead to poverty in different Indonesian regions between 2018 up to 2024. The Gross Regional Domestic Product per capita, the Human Development Index, and the Open Unemployment Rate are the independent factors used in this study, whereas poverty levels are the dependent variable. The Central Statistics Agency provided secondary data that was used in a quantitative manner. Using EViews 12 software, panel regression techniques were used to process the data. The study's conclusions show that, at a significance level of less than 0.05, economic and human development factors simultaneously significantly affect poverty rates across Indonesian regions. The coefficient of determination indicates that the variables in the model can account for the majority of the variations in poverty levels. These findings demonstrate how important a region's economic status and level of human development are to efforts to reduce poverty. It is anticipated that this research will help the government develop more effective and long-lasting methods for reducing poverty.

This study focuses on analyzing the welfare index in the ASEAN region (covering six major countries) by comparing two perspectives: objective welfare (Human Development Index/HDI) and subjective welfare (World Happiness Index). Using a balanced panel dataset from 2015–2023, the research applies different econometric approaches for each model, namely the Random Effect Model (REM) for HDI analysis and the Common Effect Model (CEM) for happiness analysis. Empirical findings indicate a striking welfare paradox across the six sample countries. In the objective dimension (HDI), economic stability (GDP) and governance free from corruption (CPI) are proven to be the main positive and significant drivers, while government expenditure (GovExp) shows no meaningful impact, suggesting budget inefficiency. Conversely, in the subjective welfare model, the Easterlin Paradox emerges, as GDP and the corruption index have no significant effect on the happiness index. The happiness levels in these six countries tend to be more influenced by government expenditure. This study concludes that strong economic fundamentals and clean governance free from corruption are essential to building a high quality of human life, whereas citizens’ life satisfaction is more determined by the direct presence of the state through public spending.

The quality of human resources is a fundamental pillar of a country’s development, and education plays a crucial role in shaping this quality. Education not only provides knowledge and skills but also builds attitudes, values, and competencies that enable individuals to contribute effectively to social and economic development. This study aims to examine how education can enhance human growth and improve the overall quality of human resources. The research employs a descriptive quantitative method by distributing questionnaires to thirty members of the general public. The collected data were analyzed using descriptive statistical techniques to identify community perceptions regarding the importance of education in human development. The results show that the majority of respondents strongly believe that education has a significant positive impact on human growth. Education is perceived as an essential tool for improving critical thinking abilities, increasing productivity, and fostering awareness of the importance of active participation in national development processes. Furthermore, respondents indicated that education contributes to the development of discipline, creativity, and adaptability, which are necessary to face global challenges and technological changes. Education also plays an important role in reducing social inequality by providing equal opportunities for individuals to improve their quality of life. Overall, these findings confirm that improving the quality of education should be a top priority in national development strategies. High-quality education is essential to produce competitive, innovative, and superior human resources that can significantly contribute to sustainable national progress.

The economy of West Sumatra Province has shown a significant decline in recent years, with the lowest growth rate on the entire island of Sumatra. This study aims to examine the influence of capital expenditure, unemployment, and the Human Development Index on economic growth in this region between 2014 and 2024. Using multiple linear regression and data sourced from the Central Statistics Agency (BPS) and the Directorate General of Fiscal Balance, the analysis shows that capital expenditure and unemployment have a significant negative impact on economic growth, while the Human Development Index (HDI) has no significant impact. Although capital expenditure varies, the decline in unemployment indicates a change in labor market conditions. This information indicates that government efforts to increase spending on infrastructure and public services are still ineffective in driving growth. Therefore, it is recommended that the government prioritize budget allocations in productive sectors such as infrastructure, tourism, and MSME development to help small businesses grow and advance through training, capital support, and technology implementation to ensure competitiveness and sustainability. Therefore, this study is expected to provide deeper insight into the elements that influence economic growth in West Sumatra and serve as a guide for further, more comprehensive research.  

Poverty is a complex and multidimensional problem. It can be characterized as a condition in which there is a lack of aspects related to the quality of life. North Sumatra Province is known as one of the richest provinces in Indonesia with abundant natural resources and agricultural products such as petroleum, natural gas, palm oil, rubber, and forest products used as industrial materials. However, it still ranks among the provinces with the highest poverty rates in Indonesia. This study aims to analyze the effect of unemployment rate, economic growth, and Human Development Index (HDI) on poverty in 14 districts/cities of North Sumatra Province during the 2016–2023 period. The analytical method used is panel data regression with the Fixed Effect Model (FEM) approach. The results of this study indicate that simultaneously, the three independent variables have a significant effect on poverty. Partially, unemployment has a positive and significant effect, while economic growth and HDI have no significant effect on poverty.

The Human Development Index (HDI) functions as a key indicator for assessing the level of welfare and overall quality of life of the population within a specific region. This study aims to examine the socio-economic factors influencing HDI at the provincial level in Indonesia using a Gaussian kernel regression approach. A nonparametric method is employed due to its flexibility in capturing nonlinear relationships between the response and predictor variables without the need to assume a specific functional form. The analysis utilizes secondary data, including education, poverty, per capita expenditure, expected years of schooling, open unemployment rate, and gross regional domestic product for each Indonesian province. The findings from this study indicate that educational factors, particularly mean years of schooling and expected years of schooling, exert the most significant impact on HDI improvement. The estimated Gaussian kernel regression model demonstrates a coefficient of determination of 0.9954 and a residual standard error of 0.3468, reflecting a very high predictive accuracy and relatively low error. These results suggest that Gaussian kernel regression is an effective nonparametric approach for analyzing human development in Indonesia.

This study investigates the impact of population growth and the Human Development Index (HDI) on economic growth and unemployment in East Kalimantan Province using path analysis with secondary data from 2014–2023. Population growth and human development are two critical demographic and socio-economic factors that often generate complex effects on regional economic performance. The results indicate that population growth has a negative and significant effect on economic growth, highlighting the pressure that rapid demographic expansion places on natural resources, infrastructure, and employment absorption capacity. Conversely, HDI demonstrates a positive and significant relationship with economic growth, suggesting that improvements in education, health, and income contribute to higher productivity and competitiveness. On the other hand, the direct effect of population growth and HDI on unemployment is negative but statistically insignificant, which implies that the availability of jobs and structural conditions of the labor market are more influential than demographic changes alone. Interestingly, economic growth shows a negative and significant effect on unemployment, supporting the classical theory that sustained economic expansion generates employment opportunities and reduces joblessness. Mediation tests reveal that economic growth does not significantly mediate the relationship between population growth or HDI and unemployment, underscoring that unemployment dynamics in East Kalimantan are influenced by broader structural factors such as sectoral concentration, policy effectiveness, and industrial diversification. These findings highlight the importance of integrating demographic management, human capital development, and sectoral economic strategies in policy formulation. Strengthening human development while controlling excessive population growth can provide a solid foundation for inclusive and sustainable economic progress in East Kalimantan.

This research investigates the relationship between fiscal decentralization, economic growth, and income inequality (measured by the Gini ratio) on the Human Development Index (HDI) in regencies and cities within Bali Province during the 2013–2023 period. Human development is a crucial indicator of regional welfare, and understanding the factors that shape HDI is essential for designing effective regional development policies. A quantitative approach was employed through panel data regression, utilizing secondary data sourced from the Central Bureau of Statistics (BPS). The findings indicate that fiscal decentralization has a positive and significant effect on HDI, suggesting that greater regional fiscal authority can improve public service delivery and social welfare. Conversely, economic growth demonstrates a significant negative relationship with HDI, which implies that growth alone does not automatically translate into improved human development, particularly when it is unevenly distributed. In addition, income inequality shows a negative and significant effect on HDI, confirming that disparities in income hinder broader improvements in welfare. Collectively, these variables significantly explain variations in HDI across regencies and cities in Bali. The policy implications emphasize the need to strengthen regional fiscal capacity, reduce income inequality, and encourage inclusive economic growth to ensure that economic progress contributes effectively to enhancing human development.

This study investigates the relationship between fiscal dependence, the effectiveness of locally generated revenue (PAD), and the degree of fiscal decentralization on the Human Development Index (HDI) in four regencies on Madura Island Bangkalan, Sampang, Pamekasan, and Sumenep which have consistently reported the lowest HDI scores in East Java Province. Utilizing panel data from 2011 to 2023, the findings indicate that all regencies remain highly fiscally dependent, with fiscal dependency ratios exceeding 89%. Central government transfers dominate local budget structures, significantly limiting local fiscal autonomy. While PAD effectiveness shows notable achievements such as Pamekasan’s 136.09% realization rate its contribution to total regional revenue remains relatively low. This is reflected in the modest degree of fiscal decentralization, which ranges between 8.56% and 10.72%. Such fiscal limitations hinder the ability of local governments to invest in strategic sectors that directly impact human development, including education, healthcare, and public services. The analysis also reveals that despite effective PAD realization, its nominal value is insufficient to drive substantial improvements in HDI, especially when not supported by strengthened fiscal capacity and local economic mobilization. These findings suggest that PAD effectiveness alone does not translate into better human development outcomes without broader fiscal empowerment. Therefore, a comprehensive fiscal decentralization strategy is required one that not only enhances revenue generation but also improves budgetary governance and optimizes local economic resources. Strengthening local fiscal autonomy is essential for ensuring targeted, efficient, and equitable investment in human development sectors, ultimately fostering sustainable regional development across Madura Island.

This study aims to examine the influence of the Gini Ratio, Human Development Index (HDI), and Labor Force Participation Rate (LFPR) on the open unemployment rate in Lampung Province during the 2019–2023 period. The method used in the analysis is a fixed effect model approach with panel data regression, based on secondary data obtained from the Central Statistics Agency (BPS) of Lampung Province. The results of the partial test (t-test) indicate that the three independent variables—the Gini ratio, HDI, and LFPR—do not have a significant effect individually on the open unemployment rate in the region. However, the adjusted coefficient of determination (adjusted R²) value of 88.95% indicates that the model can explain almost all the variation that occurs in the open unemployment rate. This shows that although these variables are statistically insignificant in the model, theoretically they still have an important role in explaining unemployment dynamics in Lampung, along with other factors not yet included in the model. This research provides a strong basis for further analysis in formulating unemployment reduction policies, particularly in regions with economic and social characteristics such as Lampung. Recommendations from this study point to the need for a more comprehensive policy approach that considers other macroeconomic variables such as investment, industrial sector growth, and the quality of education and job training to effectively and sustainably reduce unemployment at the regional level.

The Human Development Index (HDI) is a crucial indicator for measuring the success of human development, encompassing the dimensions of education, health, and a decent standard of living. In Bali Province, disparities in the HDI among regencies/municipalities still exist, which may hinder the overall regional economic development. This study aims to analyze the influence of Domestic Investment, Foreign Investment, and Labor both simultaneously and partially on the Human Development Index during the 2016–2023 period. The data used are secondary data obtained from the Central Statistics Agency, comprising 72 observations. The data collection method employed is the observation method, and the analysis technique used is panel data regression. The results show that (1) Domestic Investment, Foreign Investment, and Labor simultaneously have a significant effect on the Human Development Index of Bali Province, and (2) Domestic Investment partially has no significant effect on the Human Development Index of Bali Province, while Foreign Investment and Labor partially have a positive and significant effect on the Human Development Index of Bali Province.

This study explores employment development strategies aimed at bolstering economic growth in North Sumatra Province using the Vector Autoregression (VAR) model and an eighteen-year time series dataset. The variables analyzed include the Human Development Index (HDI), total population, Gross Regional Domestic Product (GRDP), Labor Force Participation Rate (LFPR), and Open Unemployment Rate (OUR). The estimation results reveal dynamic interrelationships among these variables over short, medium, and long-term periods. The VAR analysis with a lag of 2 illustrates how each variable contributes to both itself and the other variables. It also shows that past variables (t-1) significantly impact current variables. Furthermore, the response function analysis identifies how a change in one variable is responded to by others across different time horizons. Stability analysis confirms that all variables maintain medium-to-long-term stability over a five-year period. The Forecast Error Variance Decomposition (FEVD) highlights HDI, population, and GRDP as the most influential variables in shaping the employment system and economic development overall. The VAR model used meets the stability test criteria, making the findings a reliable basis for policy research.

This article comprehensively examines the impact of inflation on the welfare of Indonesian society from a public economics perspective. High inflation has been proven to erode purchasing power, widen economic inequality, and worsen quality of life, especially for fixed- and low-income groups. Rising prices of basic necessities force households to sacrifice spending on education and health, increasing the risk of poverty and lowering the human development index. Inflation also creates economic uncertainty, hampers investment, and triggers social conflict due to public unrest. Empirical studies indicate that every 1% increase in inflation can reduce real purchasing power by up to 2.3% and increase the number of poor people. To mitigate these regressive effects, integration of monetary, fiscal, and adaptive social protection policies is required. The experience of Indonesia and other countries underscores the importance of inter-institutional synergy and evidence-based interventions to maintain price stability and equitable welfare. In conclusion, inflation control should be seen as a long-term investment in human development and social justice, not merely as a macroeconomic stability target.

This study aims to analyze the effect of unemployment rate and health on the Human Development Index (HDI) in Lampung. This study uses a quantitative method with multiple regression analysis to test the effect of independent variables (unemployment rate and health) on the dependent variable (HDI). The results of the study indicate that the unemployment rate has a significant positive effect on the HDI, where an increase in unemployment has the potential to increase the HDI figure. On the other hand, the health variable does not show a significant effect on the HDI, indicating that although the health program is running, other factors such as the economy and education are more dominant in determining the HDI. Simultaneously, unemployment and health contribute to changes in the HDI, but the dominance of unemployment appears stronger.

This article examines the impact of poverty and unemployment on the Human Development Index (HDI) in the West Java region. Poverty and unemployment are two key factors that play a role in reducing people's quality of life. This research utilizes secondary data from the Central Statistics Agency and other sources to analyze the relationship between poverty levels, unemployment levels and HDI developments in the region. The findings show that increasing poverty and unemployment have a significant negative effect on HDI, which includes health, education and income indicators. These results highlight the importance of comprehensive intervention policies to address the problems of poverty and unemployment in order to improve the quality of life and welfare of people in Indonesia.

The quality of human resources is an important aspect in regional development, which is reflected through the Human Development Index (HDI). HDI is influenced by various factors, including the economic conditions and education of the community. This study aims to analyze the effect of Gross Regional Domestic Product (GRDP) per capita and Average Length of Schooling (RLS) on HDI in South Kalimantan Province. The data used comes from the Central Statistics Agency (BPS) with a coverage of 13 regencies/cities during the period 2018 to 2023. The analysis method used is multiple linear regression with the help of R Studio software. The results of the study show that both GRDP per capita and RLS have a significant effect on HDI, both simultaneously and partially. The resulting model has an adjusted R² value of 0.8627, which indicates that 86.27% of the variation in HDI can be explained by these two variables. The classical assumption test including linearity, conditional zero error expectation, absence of multicollinearity, autocorrelation, homoscedasticity, and residual normality shows that the model used has met all the criteria as the Best Linear Unbiased Estimator (BLUE). Thus, this regression model is valid for use in estimating and making inferences on the factors that influence the HDI in South Kalimantan Province. This finding confirms that increasing education and economic growth are strategic steps in accelerating human development in South Kalimantan.

The mining and excavation sector in the components of the gross regional domestic product (PDRB) in Bojonegoro Regency is still the backbone of regional income and also development in Bojonegoro Regency, starting from infrastructure development and human development index (HDI). In research with the mining and excavation sector variable which is the base sector using the location quotient (LQ) calculation. This leading sector in Bojonegoro Regency has many impacts on its region starting from regional original income (PAD) and also other income components as well as impacts on society and also progress in development in Bojonegoro Regency.

This study aims ti analyze the effect of the Human Development Index (HDI), Gross Regional Domestic Product (GRDP), and Open Unemployment Rate (OUR) on the poverty rate in Gorontalo Province. The study uses panel data from six districts/cities over the period 2017–2024 and is analyzed using panel data regression methods. Based on the results of the Chow test, Hausman test, and Lagrange Multiplier test, the best model used is the Fixed Effect Model (FEM). The analysis results show that simultaneously, the three independent variables have a significant effect on the poverty rate. However, partially, only the GRDP variable has a negative and significant effect on poverty. Meanwhile, the HDI and OUR variables show a negative but statistically insignificant effect on the poverty rate in Gorontalo Province.

This study aims to analyze the impact of general allocation funds, agglomeration, and human development index on regional inequality in Eastern Indonesia during the period 2019–2023. Regional inequality remains a crucial issue in Indonesia's development agenda, especially in the eastern region, which has experienced slower growth and uneven provision of public services. This study uses panel data regression analysis with secondary data. The results indicate that general allocation funds and the human development index have a significant negative impact on regional inequality, suggesting that increased fund transfers and improvements in human development can reduce inequality. Conversely, agglomeration has a significant positive impact, suggesting that economic concentration can widen disparities between regions. These findings highlight the importance of equitable development policies and investment in human capital to reduce regional disparities.