The Impact of Regional Educational Development Policies on Poverty Reduction in North Sumatra Province

Abstract

This study aims to evaluate the impact of educational development on poverty reduction in districts and cities of North Sumatra Province, Indonesia. The main focus of this study is to assess the influence of education budget realization on the Regional Education Development Index (REDI), the contribution of REDI and GRDP percapita to poverty reduction, and to develop the Regional Development of Education Index (RDEI) as a policy evaluation tool based on education. The methodology employed includes multiple regression analysis with classical assumption tests and the construction of an education index based on the conditional weighted product method. The research results show that 62% of the variation in REDI can be explained by the 20% realization of the education budget, while 62% of the variation in the poverty index at the regional level is explained by REDI, GRDP per capita, and other related variables. Medan City has the highest RDEI score in North Sumatra (67.22), far above the provincial average (52.14), reflecting the excellent educational performance in this area. The main contribution of this study is the development of RDEI, which provides a more comprehensive policy evaluation tool. It can be used to maximize the effectiveness of education budget allocation and promote improvements in educational policies to support regional development and poverty reduction in a more optimal way. This research makes an important contribution to the literature on educational policy and poverty reduction, particularly by integrating education-based index evaluation with regional development policy.