Jurnal Ilmu Ekonomi Terapan

The Impact of Human Development Index and Population Number on Economic Growth in South Sumatra Province 2018-2022

Sabardin — 2025-06-29

This study aims to determine how the human development index and population affect economic growth in South Sumatra Province in 2018-2022. This study uses secondary data from the Central Statistics Agency (BPS) from 2018 to 2022. The Fix Effect Model (FEM) is the most appropriate model selection test found in this research approach, which uses a panel data regression analysis tool. The results of the study show that the HDI has a partial positive effect on economic growth, while the population has a negative effect that is not significant partially. Both variables simultaneously affect economic growth, emphasizing the role of the government in increasing population productivity to contribute to economic growth. In classifying a region as a Prosperous region, it is necessary to review the balanced Human Development Index (HDI) and population growth at a good level.

Impact Analysis of Minimum Wages, Investments and Inflation on Labor Absorption in the Manufacturing Industry in Indonesia

Esa Fajar Rini — 2025-06-29

The Purpose of this research is to analyze the influence of investment, minimum wages, and inflation on labor absorption in the manufacturing industry in Indonesia. The analytical tool used is multiple linear regression using time series data for the period 1991-2021, by using secondary data sourced from the Statistics Indonesia (BPS). Based on the results of the study, the results were obtained that partially, each variable minimum wages and investments have a significant positive impact on the absorption of labor in the manufacturing industry in Indonesia. The inflation variable has a significant negative impact on labor absorptions in processing industries in Indonesia. While simultaneously the minimum wage, investment, and inflation have an influence on the consumption of labor in the manufacturing industry. With R-squared at 0.92. Based on the results of this study, related to the problem of low contribution of the industrial sector in job absorption, it can be overcome by increasing investment and minimum wage in the industrial sector, as well as controlling inflation. This is important to predict the high unemployment rate and also increase Indonesia’s economic growth. However, in implementing the minimum wage policy, the government must still consider the ability to pay from the industrial sector. Then, the government actively participates in making fiscal and monetary policies that can stimulate the growth of the investment climate in the industrial sector. In addition, the government must also always maintain price stability, because this has a significant impact on the sustainability of the industrial sector.

Spatial Analysis of Digital Transformation on Food Security in Sumatra: Amidst Climate Change

Moh Najikhul Fajri — 2025-06-29

This study aims to analyze the impact of digital transformation on food security in Sumatra. The research utilizes panel data from 154 districts and cities covering the period from 2019 to 2022. Food security levels are measured using the entropy method, while the effects of digital transformation are assessed through spatial panel regression to capture both spatial and temporal variations.The results indicate that digitalization has a significant positive effect on food security in the long run. This suggests that advancements in digital technology contribute to improving food systems, enhancing distribution efficiency, and increasing access to food resources. On the other hand, fiscal decentralization policies are found to have a significant negative effect on food security, implying that disparities in regional governance capabilities may hinder efforts to improve food security across different areas. In addition to digitalization, other factors such as electrification, industrialization, and population growth show significant positive effects on food security. Electrification facilitates better access to energy, which supports agricultural infrastructure and food storage. Industrialization boosts productivity and the development of food supply chains, while population growth, despite increasing food demand, can drive agricultural expansion and improvements in food distribution when managed effectively.Overall, this study highlights the crucial role of digital transformation in enhancing food security, while also emphasizing the need for equitable fiscal policies to reduce regional disparities in food access and availability.

Analysis of Socio-Economic Determinants on Infant Mortality in East Nusa Tenggara Province

Natalia Afriyani Kavit — 2025-06-29

Reducing infant mortality rates remains a key focus for the government and society. Researchers conducted an analysis of socio-economic determinants of infant mortality in East Nusa Tenggara Province using panel data from 22 districts/cities from 2017 to 2023. The Random Effect Model (REM) approach was chosen after several tests. The results show that socio-economic factors, as measured by women’s education, women’s labor force participation rate, and per capita expenditure, have a significant impact on infant mortality, while access to proper sanitation and cooking fuel did not show a significant effect on infant mortality. This research can be used as a reference in formulating policies to reduce infant mortality in NTT Province, such as equalizing access to at least 12 years of education for women in each region, increasing women’s participation in the workforce and protection against wage discrimination, increasing cigarette excise along with household financial management training, monitoring and protecting household water quality, separating the kitchen area from the bedroom.

The Role of Domestic Investment and Human Capital in Economic Performance: Does the Monetary and Fiscal Policy Mix Matter?

Muhammad Akbar Ramadhani — 2025-06-29

This study examines the impact of domestic investment and human capital on three key regional economic development challenges—income inequality, poverty, and unemployment—across ten provinces in Sumatra during the period 2010–2023. Using a panel data regression model and moderation regression analysis (MRA), the research also investigates the moderating role of fiscal and monetary policy mixes. The results indicate that domestic investment is significantly and negatively associated with income inequality and unemployment; however, its effect on poverty is statistically insignificant. Human capital, proxied by the Human Development Index (HDI), shows a significant negative effect on both income inequality and poverty, but a significant positive effect on unemployment. Monetary policy, proxied by the BI rate, has a significant positive impact on income inequality and unemployment, with no significant influence on poverty. Additionally, monetary policy is found to weaken the effect of domestic investment in reducing both income inequality and unemployment. Fiscal policy, represented by government spending, has a significant negative effect on poverty and a significant positive effect on unemployment, while showing no significant impact on income inequality. Moreover, fiscal policy strengthens the effect of HDI in reducing inequality and poverty, while simultaneously weakening its effect in increasing unemployment.

The Role of Human Development Index for Women and Wages in Children’s Malnutrition

Areta Nur Fatimah Azalia — 2025-06-29

The issues regarding malnutrition in children, including wasting, stunting, and underweight, have raised serious concerns in global public health and economics, particularly in developing countries. This study examined the relationship between women’s human development index and regional minimum wage concerning wasting, stunting, and underweight. It utilized secondary data obtained from BPS (Central Statistics Agency) and used thirty-three provinces in Indonesia from 2018 to 2022, employing panel data regression. The results indicate that the women’s human development index significantly negatively affects stunting and underweight. Additionally, regional minimum wage significantly negatively impacts wasting, stunting, and underweight. These findings underscore the importance of policies supporting improving the Human Development Index for women and establishing a fair regional minimum wage to combat malnutrition issues. Interventions could include preventing anemia in adolescent girls by providing iron supplements, facilitating pregnancy check-ups, providing supplementary food for pregnant women, and offering social assistance for constructing latrines and meeting the nutritional needs of toddlers.

Determinants of Labor Absorption in the MSME Sector in Regencies And Cities Of West Java Province

Setia Lestari — 2025-06-29

This study aims This study aims to examine how labor absorption in the Micro, Small, and Medium Enterprises (MSME) sector in West Java Province is influenced by Gross Regional Domestic Product (GRDP), Average Years of Schooling (AYS), and the Regency/City Minimum Wage (RCMW) between 2018 and 2022. A multiple regression analysis was employed as the quantitative method of analysis in this research.The findings reveal that the RCMW significantly enhances labor absorption in the MSME sector. Although some MSMEs face challenges in adjusting to the rising wage costs, the increase in minimum wages ultimately benefits workers’ welfare and makes the MSME sector more attractive to employers. Moreover, AYS also has a significant positive impact on labor absorption. Higher education levels among the workforce contribute to improved productivity and enable MSMEs to expand their staff capacity.In contrast, GRDP demonstrates a significant negative impact on labor absorption in the MSME sector. The growth in regional income, predominantly driven by large-scale industrial sectors, tends to favor capital-intensive industries over labor-intensive MSMEs.This study underscores the importance of inclusive policies to support MSMEs. These policies may include adjusting minimum wages in alignment with the region’s economic capacity, expanding access to education and training programs, and enhancing MSMEs’ capacity development. In doing so, the MSME sector is expected to grow sustainably, increase labor absorption, and make a substantial contribution to the economy of West Java Province.

Determinants of Indonesian Nickel Exports: Panel Data Analysis using Gravity Model Approach

Billie Ariyanta Hartono — 2025-06-29

This research investigates the determinants of Indonesia’s nickel exports to major destinations—China, Japan, the United States, Malaysia, and Singapore—from 2003 to 2022. By employing a gravity model, the study validates its utility in explaining Indonesia’s nickel export patterns. The results indicate a positive relationship between the economic size of importing countries and Indonesia’s nickel exports, while increased geographical distance negatively impacts these exports. The estimation also incorporated control variables such as inflation, real exchange rates, and a COVID-19 dummy. These findings highlight the importance of proactive adaptation to global market dynamics to ensure the continued strength of Indonesia’s nickel export sector.

Women Empowerment Program and Women’s Health: A Papua and Eastern Indonesia Case Study

Maria Yuvita Gobay — 2025-06-29

The research examines the role of the PKK program in promoting women’s health. This research uses a quantitative approach, analyzing secondary cross-sectional data from the Indonesian Family Life Survey (IFLS) East, 2012 using the Probit model. The research seeks to address existing gaps in the literature related to the role of women empowerment programs in enhancing health outcomes in underserved and underdeveloped areas of Indonesia. As a result, the findings reveal that the family group program (dasawisma) involving ten to twenty households has a significant and positive effect on women’s health. Participants in this program show a higher probability of being in good health compared to non-participants. On the contrary, participation in the medicinal herb garden and health fund programs does not have a significant effect on improving women’s health in Papua and eastern regions. Furthermore, higher education levels and urban residency positively influenced women’s health, whereas age and distance to health facilities negatively affected health status

Analysis of Household Cigarette Demand with Almost Ideal Demand System (AIDS) Model on the Island of Java

Catherin Yensiska Mutiara Tambunan — 2025-06-29

This study aims to analyze the effect of household expenditure, cigarette prices, and food and beverage prices on household cigarette consumption in six provinces in Java using data from the 2021 National Socio-Economic Survey (SUSENAS). The results of this study are expected to help the authorities in formulating policies related to cigarette consumption, which has been a topic of debate. Almost Ideal Demand System (AIDS) is an econometric method used to analyze consumer behavior and estimate the elasticity of demand with respect to variations of price and expenditure. The AIDS model has a good ability to predict consumer response to changes in price and expenditure. Ordinary Least Square (OLS) was chosen as the estimation method used to produce parameters for the effect of own price, cross-price, and consumer expenditure on the portion of household expenditure on cigarette consumption. As a comparison, this study used food and beverage commodities for cross-price measurement. The results showed that cigarette prices, food and beverage commodity prices, and food and beverage expenditure had a significant effect on the portion of household expenditure on cigarette consumption. Measurement of price elasticity shows that the portion of cigarette expenditure is inelastic to changes in cigarette prices. Cross price elasticity indicates that cigarettes are complementary goods with other food and beverage commodities. As for expenditure elasticity, cigarettes can be categorized as normal goods. Cigarette’s price inelasticity indicates that the objective of an excise tax increase to reduce consumption is ineffective. Other than raising taxes, there are other ways to reduce cigarette consumption that should be taken into account. Revenues from cigarette excise and taxes can be allocated to support the provision of better health services. Local government should search for alternative sources of income apart from the tobacco industry

Internal Capabilities and State Financial Policy in Advancing Green Banking Practices in Indonesia For SDGs

Muhammad Alfarizi — 2025-06-29

Amid growing global pressure for sustainability, the banking sector faces increasing demands to adopt environmentally friendly practices through the concept of green banking. This study addresses a gap in the literature by specifically analyzing how internal capabilities and state financial policies drive the adoption of green banking practices in state-owned banks in Indonesia. By integrating the Diffusion of Innovation (DOI) and Resource-Based View (RBV) frameworks, the study offers a novel perspective on sustainability adoption in the banking sector of a developing country. Data were collected through a Likert-scale survey of 274 employees from Indonesian state-owned banks and analyzed using Partial Least Squares–Structural Equation Modelling (PLS-SEM). The findings reveal that relative advantage, compatibility, and organizational support are key internal factors driving green banking adoption. Externally, human resource quality, regulatory pressure, sustainable financial policies, and global business dynamics further enhance the adoption process. The results also show that green banking implementation significantly improves Triple Bottom Line (TBL) performance, including operational efficiency and environmental risk reduction. This study highlights the importance of synergy between strengthening internal bank capacities and fiscal policy support—such as tax incentives from the Ministry of Finance—in fostering a sustainable financial ecosystem in Indonesia.

How the Consumer Confidence Index Affect the Credit Growth in Indonesia?

Pevi Fitria Kartika Alif — 2025-06-29

Credit has a positive role in encouraging economic growth in Indonesia. A factor that can influence the level of credit distribution is consumer confidence in economic conditions. Therefore, this research aims to examine the influence of the consumer confidence index and several other factors, such as inflation, third-party funds, and credit interest rates on commercial bank credit distribution in Indonesia. By using time series data for the period 2008:1-2019:12 and the Ordinary Least Square (OLS) method, this research shows that the level of consumer confidence in Indonesia’s economic conditions has a positive effect on credit distribution. The higher inflation encourages customers to apply for more credit. Apart from that, the high and low levels of credit disbursement were also positively influenced by the amount of third-party funds but were not affected by high or low credit interest rates. Thus, keeping consumer confidence high and inflation under control even though it is increasing, and raising the number of third-party funds is essential so that the economy continues to grow through the transmission of credit lines.