Panel Data Analysis of Government Policy on Human Development Index in Central Java Province

Abstract

This study aims to find out how the Regional Government plays a role in increasing the Human Development Index in Central Java Province, in achieving this goal analysis is carried out using panel data analysis on government interventions in the education, nature, and consumption sectors of Central Java in the last five years. The data used in this study is secondary data obtained from the website. For data related to the APBD, it is obtained through the publication of the Ministry of Finance’s DJPK. For the Human Development Index data and the total of education personnel, nature is obtainable from the publication of the Central Statistics Agency. Based on the results of the examination, it is savvy that the fixed effect model is the best in explaining the determinants between the human development index and the explanatory variables. In the analysis, it is also known that the variable number of educators and the variable number of nature workers have a significant effect on the growth of the Human Development Index, while the social assistance variable that reflects the level of consumption of the population of Central Java does not affect the Human Development Index. Thus, it can be concluded that the Human Development Index in Central Java is more influenced by interventions in the education sector and the health sector so that in achieving Central Java’s human development targets, both sectors should receive special attention from the local governments as the policy-making authority.