Income inequality remains a significant issue in developing countries like Indonesia, affecting societal well-being unevenly. Economic growth is often considered a key indicator of social welfare, but its benefits are not always distributed equitably. When economic growth coincides with high levels of income inequality, it suggests that only certain groups reap greater benefits while others are left behind. Therefore, it is essential to analyze whether there are disparities in the influence of economic growth on income inequality in Indonesia before and during the COVID-19 pandemic. Using a random effects model and 12 years of data (2010–2021), this analysis reveals that economic growth does not significantly affect income inequality in Indonesia, challenging the Kuznets hypothesis. Domestic investment (DIN) also shows no influence on income inequality. In contrast, the human development index (HDI) consistently has a significant negative impact on income inequality across both periods. Meanwhile, foreign direct investment (FDI) positively impacts income inequality. There is no difference in the influence of HDI and FDI on income inequality before and during COVID-19. These findings emphasize the importance of improving human resource quality as an effective strategy for addressing income inequality, particularly by enhancing access to education, healthcare services, and overall social welfare.

Regional economic growth can be studied from various points of view, one of which is based on business sectors that produce economic products. This research aims to analyze business sectors in Riau Province with a quantitative descriptive test approach by using data from 2015 to 2022’s Gross Regional Domestic Product based on constant prices. The analysis methods are Location Quotient, Dynamic Location Quotient, Shift Share, and Klassen Typology. The research analyzed 52 business sectors classified by the Indonesian Central Bureau of Statistics. The results of this research show that the business sectors in Riau Province with good analytical results based on all the analysis methods are plantation crops, agricultural and hunting services, forestry and logging, coal and oil and gas refining industries, and paper and paper products industries; printing and reproduction of recorded media. The relevant government can prioritize these sectors while still considering other aspects to increase economic growth in Riau Province.