The Correlation of SDG 1 and 8 and Spatial Effect of Human Development Index in Central Java

Abstract

Human Development Index (HDI) is the approach to measure socio-economics since 1990. Furthermore, integrating socio-economics with the environment brings the development of Sustainability Development Goals (SDGs). The relations between human development and sustainable development are complementary to build a better society. However, by 2020, the growth of HDI in Indonesia starts slowing down during Covid-19 to only 0,03% from the previous year. Central Java is one of the provinces that can still manage the HDI growth higher than Indonesia. This study aims to find the SDG 1 and 8 factors that affect HDI in Central Java with the spatial econometrics method to analyze the spatial dependency in variables. The variables of SDG 1 and 8 in this study are Ln Poverty Line, Ln GDRP per capita, unemployment, and poverty rate. This study shows that the SDG 1 and 8 variables have significant results and implicates spatial effects through Spatial Lag in the HDI of Central Java. The implication of this study is to encourage collaborative action in strengthening the implementation of SDGs and improving the HDI of the regions and cities in Central Java.