Pengaruh Pengeluaran Pemerintah Terhadap Ketimpangan Pendapatan Antarwilayah Di Indonesia

Abstract

This study aims to analyze the effects of government expenditure on education, health, infrastructure, and social protection on interregional income inequality in Indonesia. The study uses panel data from 34 provinces over the period 2015–2024, with the Gini ratio as the dependent variable, government expenditure on education, health, infrastructure, and social protection as the independent variables, and GDP per capita and the unemployment rate as control variables. The analysis employs panel data regression, with the best model selected based on model specification tests. The results show that education expenditure has a negative and significant effect on income inequality in Western Indonesia and Indonesia as a whole, but has no significant effect in Central and Eastern Indonesia. Health expenditure has a positive and significant effect on income inequality in Indonesia as a whole, but has no significant effect in Western, Central, or Eastern Indonesia. Infrastructure expenditure has no significant effect in any region. Social protection expenditure has a positive and significant effect on income inequality in Central Indonesia, but has no significant effect in Western, Eastern, or Indonesia as a whole. Simultaneously, government expenditure on education, health, infrastructure, and social protection significantly affects income inequality. These findings indicate that the effects of government expenditure vary across sectors and regions. Therefore, government expenditure policies need to be adjusted to the characteristics and needs of each region.