Nationally Accredited SINTA 2 based on the Decree of the Minister of Research, Technology and Higher Education, Number 21/E/KPT/2018. Accreditation is valid for five years Vol. 5. No. 1. 2016 - Vol 9. No. 4. 2020 Economics Development Analysis Journal starting in 2024 migrates to better secure from various unwanted things, including journal hacking and so on. To submit, the author please visit the new website page of our journal at the link https://journal.unnes.ac.id/journals/edaj MIGRATION OFFICIAL STATEMENT HERE Economic Development Analysis Journal [p-ISSN 2252-6560 | e-ISSN 2502-2725] is a scientific journal published by Department of Economic Development, Faculty of Economics, Universitas Negeri Semarang and Asosiasi Pendidikan Ekonomi LPTK. Economic Development Analysis Journal publishes original research and conceptual analysis of economic development, problems and policies in Indonesia. Abstracting/Indexing: Dimension | GARUDA | SINTA | DOAJ
Economic Viability of Community Gardens in Semarang City
Numerous studies have shown that urban agriculture makes substantial contributions to poverty reduction, reduces unemployment, and improves food security. Unfortunately, research on the profitability and economic viability of urban agriculture remains limited. This research aims to explore the economic viability of community gardens as a form of urban agriculture in Semarang City, Indonesia. Semarang city was chosen due to its active implementation of urban farming programs initiated by the municipal government. The research employed a qualitative approach involving 24 participants spread across all sub-districts in Semarang. Data were collected through questionnaires, in-depth interviews, observations, and documentation. Thematic was applied to explore the research findings with the help of NVivo 12 Pro software. The findings indicate that most community gardens operate at a financial loss, showing weak economic viability. Even so, they continue to function sustainably, driven not by profit but by government programs, social cohesion, and environmental concern. This reveals a paradox: community gardens may not generate a profit, yet they remain socially sustainable – sustained more by policy than by market forces. These findings suggest that their sustainability relies more on institutional and communal support than on profit generation. Strengthening government facilitation and community empowerment is essential to ensure their long-term continuity.
economic viability of urban agriculture; community garden; poverty and food security; urban farming for sustainable development goals; household income
Copyright (c) 2025 Economics Development Analysis Journal
Household Consumption, Inequality, and the Diffusion of E-Cigarettes in Indonesia
Tobacco use remains one of Indonesia’s significant public health burdens, and the rapid growth of electronic cigarettes (e-cigarettes) introduces new regulatory challenges. Data from the 2018 Basic Health Research Survey (Riset Kesehatan Dasar; RISKESDAS) show that adolescent e-cigarette use increased sharply from 1.2% in 2016 to 10.9% in 2018. Drawing on consumer behaviour theory and the diffusion of innovations framework, this study examines how household consumption, income inequality, poverty, unemployment, and demographic factors influence e-cigarette uptake in Indonesia. Using nationally representative data from the 2023 National Socio-Economic Survey (Survei Sosial Ekonomi Nasional; SUSENAS), this study applies logistic regression and accounts for clustering at the provincial level. The results indicate that higher household consumption significantly increases the likelihood of e-cigarette use. Income inequality exhibits a strong positive association, suggesting diffusion driven by more affluent adopters, whereas unemployment and poverty show negative but statistically insignificant effects. E-cigarette adoption remains concentrated among men and urban residents. Overall, the findings indicate that the diffusion of e-cigarettes in Indonesia reflects underlying socioeconomic disparities. These results underscore the importance of policies addressing affordability and marketing practices—such as excise taxation, price floors, and integrated regulatory frameworks—to mitigate the expansion of nicotine-related inequalities and Indonesia’s existing tobacco burden.
Copyright (c) 2026 Economics Development Analysis Journal
Institutional Quality, Financial Stability, and FDI Dynamics in Asia
This study aims to analyze how institutional quality and financial stability influence foreign direct investment (FDI) in Asian countries, examining differences across country income groups. This study utilizes data from 39 Asian countries spanning the years 2013 to 2021. The analytical tool used is the Generalized Method of Moments (GMM), consisting of first-difference GMM and system GMM. Furthermore, this study uses principal component analysis (PCA) to calculate composite variables related to the institutional quality index. The results show that institutional quality and financial stability have a positive overall impact on FDI in Asian countries. However, the impact varies depending on the country's level of income. Institutional quality has a more significant impact in high-income countries, while in lower-middle-income countries, economic growth is the primary determinant of FDI. These findings emphasize the importance of improving governance and financial stability in attracting foreign investment. Governments, particularly in lower-middle-income countries, need to strengthen law enforcement, reduce corruption, maintain political stability, and create regulations that support an investment climate to make it more attractive to foreign investors
Efficiency of Conventional Vs Islamic Banks in Indonesia: Pre and Mid-Covid Analysis
This study aims to assess the technical efficiency of Indonesia’s conventional and Islamic banks and to examine whether their efficiencies differ between the periods before and during the COVID-19 pandemic. Bank input and output data are obtained from financial statements sourced from the CEIC Global Database for 96 Indonesian banks over the period from 2015 to 2022. The study employs bootstrap Data Envelopment Analysis (DEA) under both production and intermediation approaches to estimate bias-corrected technical efficiency. Independent t-tests are conducted to compare efficiency scores between conventional and Islamic banks, as well as to examine differences in technical efficiency before versus during the COVID-19 pandemic. The empirical findings indicate that Indonesian banks during the pandemic period were generally less efficient than before, and Islamic banks consistently exhibited lower technical efficiency than conventional banks. Although conventional banks outperform Islamic ones overall, the efficiency gap is not statistically significant during the pandemic. Moreover, banks show higher efficiency under the production approach, indicating stronger performance in revenue generation than fund intermediation. This study advises Indonesian banks to increase interest income (or fund disbursements, for Islamic banks), non-interest income, and loans while also considering risk to improve overall technical efficiency.
Circular Economy in Waste Bank for Sustainability and Empowerment
This research aims to develop an integrative conceptual model that connects the circular economy, waste bank optimization, community empowerment, and sustainable economy. The novelty of this study lies in integrating digital incentive systems and participatory approaches in community-based waste management. The method employed was a mixed-methods approach, incorporating a quantitative component that utilized SEM-PLS on 200 respondents, complemented by qualitative data from in-depth interviews. The results indicate that community empowerment and the digitalization of waste bank systems have a significant impact on the sustainability of the local economy. Theoretically, this research strengthens the capabilities (Sen) and environmental economics (Pearce & Turner) approaches and practically offers a data-driven local policy framework for waste management optimization. The resulting model can serve as a reference for informed decision-making at the regional level, integrating environmental, social, and economic aspects sustainably.
Circular Economy, Waste Bank, Sustainable Economy, Community Empowerment
Export Strategy Development in Micro and Small Enterprises of The Craft Sector in Central Java
This study examines which factors most strongly drive export participation among craft-sector micro and small enterprises (MSEs) in Central Java. Focusing on batik, furniture, and leather products, we highlight a capability-first perspective that has been underexplored in this context. Using a survey of craft MSEs analyzed with logistic regression, we compare the effects of human capital (export knowledge and skills) with commonly cited enablers such as capital and government assistance. The results show that export knowledge and skills consistently predict export participation, whereas financial inputs and generic assistance are not decisive once capabilities are considered. These findings suggest that policies and firm strategies should prioritize practical export know-how, skills development, and market-readiness over undifferentiated financing. The study contributes evidence from Indonesia’s craft sector that human capital is the primary lever for scaling MSEs to international markets. The skills possessed in the Craft sector in Central Java regarding exports have a positive influence on their performance with a coefficient value of 5.76; this indicates that if the skills of MSEs in the Craft sector in Central Java increase by 1%, it will increase MSEs performance by 5.76%.
Village Funds and Village Development: The Case of West Java
The Village Fund program has enabled the widespread implementation of village development initiatives that involve local communities as the subjects of development (i.e., Community Driven Development) across various countries, including Indonesia. Despite receiving substantial village funds, West Java, one of Indonesia's provinces, exhibits slow growth in the Village Development Index (IDM). This study examines the effect and impact of Village Funds on achieving the Sustainable Development Goals (SDGs), as measured by the IDM in West Java Province. The methodology employs a panel data regression with fixed effects and a Difference-in-Difference (DiD) analysis on 5,312 villages that received Village Funds between 2018 and 2023. Findings indicate that Village Funds significantly impact the IDM, primarily through infrastructure projects within the village development sector. Furthermore, the regression analysis revealed that all sectors positively and significantly influence the IDM, particularly the village development implementation sector. Conversely, the DiD analysis suggests that the alignment of Village Fund activities with the SDGs has not significantly affected IDM growth in West Java. Thus, to accelerate village development, the government must balance the prioritization of Village Funds. This balance should move beyond solely focusing on infrastructure development to encompass activities in other fields, such as village community empowerment
Digital Transformation: HDI, Consumption, And Inclusive Economic Growth Link
This research investigates the impact of digital transformation on inclusive economic growth in Indonesia, in light of significant social and economic inequality. While previous studies, particularly in South Africa, have highlighted opportunities for market access, this study focuses on identifying the factors that influence the contribution of digital transformation within the Indonesian context, using Prakash’s theory. A quantitative descriptive approach was employed, utilizing secondary data from the Central Statistics Agency across ten provinces in Sumatra. The analysis applied the Panel Vector Autoregressive (PVAR) method to examine the relationships among variables, including the Human Development Index (HDI), consumption, and social inequality. The findings indicate that, in the long term, both consumption and HDI have a negative impact on inclusive economic growth, with t-statistics of -2.452 and -5.093, respectively. Inequality, however, did not show a significant influence, with a t-statistic of 1.148. Similar trends were observed in the short term. The study concludes that a nuanced understanding of the equitable implementation of digital technology is essential for achieving inclusive economic growth. Notably, the negative influence of HDI on economic inclusion suggests that improvements in quality of life do not always correlate directly with economic growth, offering new insights into the discourse on digital transformation and economic inclusion in Indonesia.
Determinants and Potential of Indonesia’s Frozen Shrimp Exports
This study examines the main factors influencing the flow of Indonesian frozen shrimp exports and explores opportunities to strengthen trade with key destination countries. The research uses a panel data regression approach, including estimation and potential analysis, focusing on 12 major trading partners from 2012 to 2023. The study analyzes frozen shrimp under HS code 030617, one of Indonesia's leading fishery export commodities. The findings show that importer gross domestic product, importer population, and revealed comparative advantage positively influence frozen shrimp exports. In contrast, Indonesia's gross domestic product, economic distance, and non-tariff barriers have a negative impact. Based on the regression results, the potential analysis identifies several countries with strong export prospects, including Australia, the Netherlands, Hong Kong, the United Kingdom, Japan, Germany, Canada, South Korea, Malaysia, France, and Singapore. These results provide meaningful managerial implications, such as increasing domestic production capacity, enhancing export competitiveness, and developing focused marketing strategies to penetrate high-potential markets.
A Spatial Econometric Approach on Addressing Determinants of Regional Inequality
The disparity in socioeconomic conditions across Banten Province is suspected to contribute to regional inequality, stemming from uneven economic development. This is evidenced by certain areas with significantly higher economic levels than others. This study uses correlational and spatial approaches to analyze the influence of these socioeconomic conditions on the high level of regional inequality in Banten Province. The socioeconomic variables examined include the Human Development Index (HDI), labor force participation rate, poverty rate, base economic sector, and economic growth. The findings indicate that the poverty rate significantly correlates with regional inequality in a non-spatial context. Meanwhile, the base economic sector (particularly manufacturing) and economic growth show significant spatial effects on regional inequality.
The Impact of MSME’s on Employment, Investment, and Income
North Sumatra, a key economic region in Indonesia outside of Java, continues to face persistent challenges such as high unemployment, the dominance of the informal sector, and uneven economic growth. Within this context, Micro, Small, and Medium Enterprises (MSMEs) serve as a cornerstone of the regional economy, particularly through their role in labor absorption and income generation. Despite their significance, MSMEs in North Sumatra still face substantial obstacles, including limited access to financing, inconsistent investment growth, and inadequate policy implementation—factors that hinder their full potential in driving inclusive development. This study examines the dynamic relationship between MSME growth, workforce participation, and Gross Regional Domestic Product (GRDP) in North Sumatra, employing a simultaneous equation model with time-series data from 2009 to 2023. The Two-Stage Least Squares (2SLS) method addresses endogeneity and simulates the effects of policy interventions projected for the 2025–2030 period. The findings indicate that MSME development is significantly influenced by policy instruments such as tax incentives and minimum wage regulations. Increases in wages and tax reductions enhance labor absorption, stimulate MSME performance, and promote GRDP growth. The study provides practical policy insights for strengthening the resilience and sustainability of MSMEs within North Sumatra’s evolving economy.
The Role of Family Support in Combating Social Disconnection
This study examines the role of family relationships in mitigating social disconnection, specifically feelings of lacking friendships, being left out, and experiencing isolation. A logit regression analysis was employed using nationally representative data from the 2021 Indonesian Happiness Survey. The study measured three dimensions of family support: communication frequency, shared family activities, and perceived family harmony. Findings indicate that frequent communication and family togetherness significantly reduce the likelihood of experiencing loneliness. In contrast, perceived family harmony exhibited a weaker effect. These results suggest that the quantity of family interactions is more critical than their perceived quality in alleviating social disconnection. The study highlights the importance of family engagement and communication as effective strategies for combating loneliness and enhancing individual well-being.
Stakeholder Engagement: Development of Sustainable Tourism Based on Local Wisdom
The development of sustainable tourism in Pati Regency, grounded in local wisdom, has been hindered by several factors, including structural ego issues, overlapping policies, and inadequate stakeholder collaboration. This study analyzes efforts to support tourism development, examines the impact of various variables (factors), and assesses the influence of stakeholders (actors) in sustainable tourism initiatives based on local wisdom in Pati Regency. The methodology integrates qualitative and quantitative approaches, employing the MICMAC and MACTOR methods. MICMAC analysis identifies core variables such as uniqueness and historical value, regional income, stakeholder relationships, community involvement, and utilizing local wisdom in tourism development. MACTOR analysis reveals key stakeholders namely, the Tourism and Culture Office (Dinporapar), the Cooperative and Small and Medium Enterprises Office (Dinkop), and the local community as central actors in sustainable tourism development. The findings from the MICMAC and MACTOR analyses provide a basis for formulating a comprehensive strategy to accelerate sustainable tourism development rooted in local wisdom in the Pati Regency. Further research may incorporate additional external variables and stakeholders to support advancing tourism models based on local creative economy initiatives.
Mediating Role of Oil Production in Non-Tax State Revenue Determinants
This study aims to analyze the effect of the Indonesian Crude Price (ICP) and upstream oil and gas state-owned assets on oil non-tax state revenue from the oil and gas sector, with oil production considered as a potential mediating variable. Using the Vector Autoregression (VAR) model, the study examines short-run relationships through Granger causality and t-statistics, as well as long-term contributions via Forecast Error Variance Decomposition (FEVD). The results show that the ICP has a positive and statistically significant effect on oil non-tax state revenue. In contrast, upstream oil and gas state-owned assets and oil production do not exhibit significant short-run effects. Moreover, oil production does not function as a mediator in the relationship. Nonetheless, FEVD results suggest that the ICP and oil production make meaningful long-term contributions to oil non-tax state revenue, indicating underlying structural links not captured by short-run causality. These findings highlight the importance of managing oil price fluctuations and designing fiscal structures that are responsive to global oil market dynamics.
Exploring Excessive Working Hours Among Transportation Gig Workers in Indonesia
The development of information technology has driven the emergence of the gig economy, which has significantly changed the employment landscape. In Indonesia, the gig economy's growth has led to a significantly increasing number of gig workers, particularly in the transportation sector. While digital platforms create flexible job opportunities, this work model also presents challenges, particularly excessive working hours, often necessary to meet daily income targets. This study analyzes the determinants of excessive working hours of gig workers in the transportation sector using logistic regression analysis with the 2022 National Labour Force Survey (Sakernas) data. The results confirm that gig workers in the transportation sector are likelier to experience excessive working hours than non-gig transportation workers. This finding proves that gig transportation workers are more vulnerable than traditional transportation workers. Several factors, such as gender, age, education, region, marital status, and ownership of a Kartu Prakerja, significantly influence the likelihood of gig workers in the transportation sector experiencing excessive working hours. The study’s findings offer implications for labor policies and social protection, particularly in ensuring the well-being of gig workers in the transportation sector amid the dynamics of the digital economy
gig workers, transportation, working hours
What Makes Society Happy? Exploring Factors Influencing Happiness in Indonesia
Happiness is a crucial aspect in evaluating development, as it reflects both the output and outcome for society. This study aims to examine the influence of environmental quality index (IKLH), human development index (IPM), economic growth, and government expenditure on the happiness index of Indonesia and 34 provinces in Indonesia. A panel data regression model is employed to identify the factors of Indonesia’s happiness index, while Geographically Weighted Panel Regression (GWPR) is specifically for 34 provinces in Indonesia. This model combination introduces a novel methodology for happiness studies by providing a comprehensive perspective. Both models produce consistent relationships and significant variables: IKLH has a significant negative relationship, while IPM and economic growth have significant positive relationships, but government expenditure is not significant. Specifically, the GWPR indicate that happiness in Kalimantan Island, parts of Sumatra, South Sulawesi, and Bali is influenced solely by IPM. The happiness of most provinces in Sumatra and the Nusa Tenggara Islands is driven by IPM and economic growth. Meanwhile, all provinces in Java Island, Lampung, North Maluku, and most of Sulawesi Island, have happiness influenced by IPM and IKLH. Finally, in the majority of eastern Indonesian provinces, happiness is shaped by IPM, IKLH, and economic growth.
Environmental Quality Index (IKLH), Human Development Index (IPM), Economic Growth, Government Expenditure, Panel Data Regression, Geographically Weighted Panel Regression (GWPR)
Impact of the Shadow Economy on Tax Buoyancy in Central Java
Taxation plays a strategic role as the primary source of government revenue, supporting fiscal stability and sustainable economic growth. In this context, tax buoyancy serves as an important indicator for evaluating the responsiveness of tax revenues to economic growth. Despite its substantial contribution to regional income, Central Java exhibits the lowest level of tax buoyancy among provinces on the island of Java, indicating the presence of unrealized fiscal potential. This study examines the effect of the shadow economy on tax buoyancy using a labor-based approach and panel data regression with a Fixed Effects Model. The analysis utilizes secondary data from the Directorate General of Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan/DJPK) and Statistics Indonesia (BPS) for the period 2016–2022. The independent variables include population, investment, and the shadow economy. The results indicate that population has a negative effect on tax buoyancy, while investment shows no statistically significant effect. In contrast, the shadow economy exerts a significant positive influence on tax buoyancy. The novelty of this research lies in its application of a labor-based approach to capture the dynamics of the shadow economy within a tax buoyancy framework. These findings highlight the importance of policy strategies aimed at formalizing the informal sector through tax incentives, regulatory simplification, and improvements in business licensing systems in order to enhance the sustainability of tax revenues.
Shadow economy, Tax Responsiveness, Employment Approach.
Determinants of Microfinance Institutions’ Financial Performance in Indonesia
This study investigates the determinants of financial performance in Indonesian Microfinance Institutions (MFIs), analyzing financial and social factors alongside the impacts of COVID-19. Using panel data from 242 OJK-regulated MFIs from 2018 to 2023 (1,452 observations), fixed-effects regression reveals that the Debt-to-Equity Ratio (DER), Women’s Empowerment Index (WEI), and Microcredit Proportion (PMC) negatively affect Return on Assets (ROA), while Firm Size (SIZE) and Loan-to-Deposit Ratio (LDR) show positive effects. Service Accessibility (ACCES) proves to be insignificant. The findings highlight a critical trade-off: while MFIs’ social missions such as women’s empowerment and microcredit expansion depress profitability, operational scale and liquidity management enhance performance. The pandemic exacerbated these tensions, particularly in under-supported empowerment programs. This study contributes to the microfinance literature by empirically validating capital structure and social performance theories in Indonesia’s unique context. Practical implications suggest optimizing capital structures to reduce leverage risks, balancing microcredit portfolios with larger loans, and integrating digital tools to improve efficiency. For policymakers, these insights underscore the need for regulations harmonizing financial sustainability with inclusive development goals. By bridging empirical gaps, this research offers a framework for MFIs navigating post-pandemic recovery while maintaining their dual social–financial mission.
Family Controlling Shareholder and Financial Distress in Indonesia: Socio-Demographic Moderation
Financial distress is a major issue for a company in terms of maintaining the sustainability of its performance in the future. One aspect that needs to be considered is the controlling shareholder family. It is an important factor that needs to be considered to see how the company's performance will develop in the future. Therefore, this study examines the relationship between the family controlling shareholders and the financial distress in Indonesia, which is moderated through socio-demographic factors. The moderated regression analysis (MRA) was applied to 253 Indonesian public limited companies from 2013 to 2021. The result revealed that family-controlling shareholders positively and significantly affect financial distress. On the other hand, experience as a socio-demographic factor also moderated this nexus negatively. Thus, the important role of the family controlling shareholders must be considered as a main factor for predicting financial distress in Indonesian companies.
Does Vertical Educational Mismatch Hinder Economic Growth?: Evidence from Indonesia
Most studies have examined the effects of overeducation and undereducation on individual wages; however, only a few scholars have investigated the impact of this vertical educational mismatch on economic growth. Therefore, this study attempts to enter this area of analysis. The effect of overeducation and undereducation on economic growth was examined using panel data from 33 provinces in Indonesia between 2012 and 2022. Using the System Generalized Method of Moments (Sys-GMM) estimator, this study found empirical evidence that overeducation reduces economic growth. This implies that even if overeducation yields a positive return on individual wages, it remains detrimental at an aggregate level. The negative effect of overeducation on economic growth suggests that overeducation is a form of human capital and external education inefficiency. Thus, it needs to be addressed seriously by the Indonesian government. On the other hand, this study found no evidence that undereducation has an impact on Indonesia's economic growth.
Financial Development and Poverty Reduction in Indonesia: An Empirical Investigation
Poverty in Indonesia has decreased but still presents many challenges in achieving significant reduction targets. The main objective of this study is to estimate the effect of financial sector development on poverty in Indonesia. The dependent variable was household final consumption expenditure as a proxy for poverty, while the independent variables were broad money and gross savings. The study used time series data and applied the ARDL-ECM (Autoregressive Distributed Lag–Error Correction Model) method for 1981–2022. The main finding was that broad money did not significantly affect poverty reduction. Gross savings were significant with a negative coefficient; higher savings were associated with higher poverty rates due to decreased consumption. Furthermore, the stability of the research model was tested using normality, serial correlation, heteroscedasticity, cumulative sum (CUSUM), and cumulative sum of squares (CUSUMQ) tests. The financial sector can reduce poverty through efficient financial services for the poor, microeconomic empowerment, and increased financial inclusion. In the future, the government must promote a conducive and competitive financial sector to support poverty alleviation programs
Financial Development, Poverty Reduction, ARDL-ECM, Indonesia
The Efficiency of Government Health Expenditure in ASEAN Countries
Inefficiencies in health expenditure result in an estimated 1–1.4% of global Gross Domestic Product (GDP) being wasted across various regions, presenting a significant challenge for countries striving to optimize healthcare spending. This study aims to assess the efficiency of government health expenditure in six ASEAN countries with the lowest per capita government health spending, using the Data Envelopment Analysis (DEA) method. In addition, Tobit regression is employed to identify factors that influence the efficiency of government health expenditure. The results indicate that most countries have not achieved maximum efficiency scores over the years, underscoring the need for improved budget management and reforms in health policy implementation. The Tobit regression analysis reveals that economic growth, urbanization rate, and the proportion of government health expenditure in current health expenditure have a positive and significant effect on efficiency scores. This suggests that increased public investment and urban development contribute to improved efficiency in healthcare spending. Conversely, total carbon emissions have a negative impact on efficiency, emphasizing the influence of environmental factors on health system performance.
Data Envelopment Analysis, Efficiency of Government Health Expenditure, Tobit Regression
The Non-Linear Relationship Between Land Ownership and Child Labor
This study examines the relationship between household land ownership and the number of hours children spend working. This assumption is based on previous research suggesting that children from households with large landholdings are more likely to be engaged in child labor than those from land-poor households. This phenomenon arises from the fact that land is a crucial asset for agricultural households, often requiring family members, including children, to participate in farm-related activities. This study employs a random effects method using panel data from the Indonesia Family Life Survey (IFLS) for the years 2000, 2007, and 2014. The findings reveal a distinct pattern, particularly in the Indonesian context, where land size exhibits a non-linear relationship with children's working hours. As land ownership increases, children's working hours tend to decrease; however, beyond a certain threshold, children's working hours begin to rise with increasing land size. Heterogeneity analysis further indicates that non-food farmland has a greater impact on the increase in children's working hours. This may be due to the higher demand for additional labor in larger-scale agricultural production, which often relies on family members for support.
Impact of Indonesia's Non-Toll Road Policy on Travel Cost-Time
This study aims to provide empirical evidence on whether non-toll road construction, as a government investment (National Strategic Project) in the transport infrastructure sector, impacts local economic activity at the village level. It fills a gap in the literature by adopting a Difference-in-Differences (DiD) approach and analyzing at the village level using PODES data, comparing villages affected by the policy (treatment group) with those that were not (control group). Key outcome variables derived from PODES data include travel time and cost to sub-district and district centers. To ensure robustness, the analysis includes fixed effects for time and location, and placebo tests are conducted to validate the assumption of parallel trends. The results show that non-toll road construction leads to a statistically significant reduction in travel time by 21% and travel costs by 30.9%, associated with improved access to government services and modest growth in local economic indicators such as market activity, employment, or business formation.
Analysis of Economic Growth with Spatial Interaction Between Regions in Indonesia
This study employs a quantitative research approach with a descriptive methodology to analyze spatial interconnections between provinces in Indonesia. The research utilizes panel data regression, assisted by EViews software, and a Spatial Autoregressive (SAR) fixed effects model using R software. The spatial panel regression testing results indicate that the SAR fixed effects model is the most appropriate. The findings reveal that inflation (X1), exports (X3), and national health insurance (X6) have significant effects on economic growth. Global spatial autocorrelation was analyzed using the Moran Index and the Local Indicator of Spatial Autocorrelation (LISA) to identify provinces with spatial autocorrelation from 2019 to 2023. For inflation, 13 provinces exhibit spatial interconnections, namely West Java, Central Java, DI Yogyakarta, North Sumatra, North Maluku, Papua, Bengkulu, Bangka Belitung Islands, West Kalimantan, DKI Jakarta, West Sumatra, Jambi, and South Sumatra. For exports, 11 provinces demonstrate significant spatial interconnections, including West Java, Central Java, Lampung, South Sumatra, Jambi, North Maluku, Bengkulu, Bangka Belitung Islands, DI Yogyakarta, Papua, and Southeast Sulawesi. Meanwhile, for national health insurance, 11 provinces show significant spatial interconnections: Southeast Sulawesi, West Sumatra, Papua, Riau, Bengkulu, Jambi, South Sumatra, Bangka Belitung Islands, Riau Islands, West Kalimantan, and North Kalimantan.
Investigating the Role of Health Expenditure on Tuberculosis Incidence in Indonesia
Tuberculosis has remained a persistent Indonesia health problem. With multiple government and donor initiatives to eradicate TB and its detrimental effects on Indonesia's health outcomes, the incidence of TB in Indonesia is still worsening. This study aimed to investigate the impact of health expenditure on TB incidence in Indonesia, which is one of the countries with the highest TB incidences globally. The method used is (Autoregressive Distributed Lag) to employ short-run and long-run effects using time series data from Indonesia from 2000 to 2021. The Findings demonstrate a significant inverse relationship between health expenditures (both public and private) and the incidence of tuberculosis. Increased public spending on healthcare is associated with a lower incidence of TB, both in the short and long term. Similarly, private health spending significantly contributes to TB reduction, with effects observed both immediately and over the long run. Furthermore, other variables also affect TB incidence. Higher Gini coefficients and unemployment rates are associated with increased TB incidence, while higher rates of BCG immunization and greater public effectiveness are associated with lower TB incidence.
Maintaining The Leading Economy of The City of Semarang
The economic position of a city is crucial for the sustainability of regional economic development. To enhance competitiveness and achieve economic excellence, a combination of simultaneous drivers is necessary. As the core city of the Kedungsepur agglomeration, Semarang City plays a strategic role in regional development. This study employs a quantitative methodology, utilizing the Location Quotient (LQ) technique with data sourced from the Central Bureau of Statistics (BPS). The findings indicate that Semarang City's economic transformation, characterized by competitiveness and specialization in the trade, real estate, and public service sectors, requires support from surrounding regions to maximize its role in driving sustainable economic growth. Additionally, the study identifies the city's prime sectors—trade, real estate, public services, and transportation and warehousing—highlighting their contribution to generating high-added value amid global economic dynamics. Despite its economic diversification, Semarang City remains heavily reliant on the manufacturing industry due to its substantial sectoral contribution. Therefore, while manufacturing remains a key pillar of the local economy, identifying new growth potentials and fostering collaborative strategies within the agglomeration area is essential for long-term economic resilience. Semarang City possesses significant potential for sustainable growth by distributing the benefits of development to its surrounding regions, reinforcing its role as a regional economic driver.
Development; city economy; competitiveness; leading sectors; specialization.
Does Informal Labor Affect Food Security? Evidence from Indonesia
This study analyzes the impact of informal employment on household food security in Indonesia, focusing on concern about food sufficiency, access to nutritious food, and reduced food intake. Using data from the March 2021 Indonesia National Socioeconomic Survey, binary logistic regression models were applied to a weighted sample of household heads actively employed in formal and informal sectors. The analysis reveals that informal employment significantly undermines food security across all measures, with informally employed households facing higher risks of food shortages, reduced nutritional access, and inadequate intake. Vulnerabilities are more pronounced in rural and non-agricultural households. Protective factors such as education, internet access, and health insurance enhance food security, while larger household sizes and underemployment exacerbate risks. This study emphasizes the urgent need for targeted interventions to safeguard food security for vulnerable populations in Indonesia.
Energy Poverty and Labor Supply in Eastern Indonesia
Gender inequality in economic participation is a crucial aspect of sustainable development strategies aimed at improving living standards. The high level of inequality is primarily driven by stagnation in female labor supply. One of the factors influencing labor supply is energy povertyIn Indonesia, studies addressing the relationship between energy poverty and economic participation remain scarce. Therefore, this research aims to fill the existing research gap by analyzing the relationship between energy poverty and labor supply, particularly in Eastern Indonesia. To address endogeneity issues caused by selection bias, this study employs the Two-Step Heckman method. Using data from the 2021 Susenas, the findings reveal that energy poverty significantly reduces working hours in Eastern Indonesia. This impact is more pronounced among male workers compared to female workers and is more dominant in urban areas than in rural areas. These findings underscore the importance of policy interventions aimed at reducing energy poverty as a means of improving labor productivity, particularly in Eastern Indonesia. This study also contributes to understanding the dynamics of labor markets in regions facing energy and economic development challenges.
kemiskinan energi, penawaran tenaga kerja, Indonesia
Spatial Analysis and Spillover Effects on Economic Growth in Central Java
This study investigates the impact of regional spillover effects on economic growth in Central Java’s regencies and cities, focusing on Knowledge Spillover, Industry Spillover, Private Investment Spillover, and Government Expenditure Spillover using a spatial econometrics panel model. The results indicate significant effects on local economic growth; however, direct spillover effects, which are represented by the variable Wx in the Spatial Durbin Model (SDM), were not significant. This may be due to limited resource mobility, varying regional absorption capacities, and temporal dynamics. Direct spillover effects typically involve immediate economic interactions between neighboring regions, but in this study, these effects did not materialize as expected. Conversely, indirect spillover effects, reflected by spatial parameters ρ in the Spatial Autoregressive Model (SAR) and λ in the Spatial Error Model (SEM), highlight the importance of broader spatial dynamics across regions. These effects underscore the significance of interregional linkages rather than direct regional interactions, showing that regional synergies play a crucial role in fostering economic growth. From a policy perspective, the study recommends strengthening interregional cooperation by enhancing mechanisms such as information flow, technology transfer, and investment. Investment in digital infrastructure, the creation of innovation hubs, and cross-regional investment funds can help bridge the development gap and foster sustainable growth. Policies that support labor mobility and skill-building opportunities, especially for marginalized groups and women, are essential to promote equitable and inclusive economic development across regions