Human Development Gaps: Evidence from Eastern Indonesia

Abstract

The Human Development Index (HDI) in Indonesia continues to improve. However, the rate of development varies by region, most notably in eastern Indonesia. Based on our findings, it is clear that during the COVID-19 pandemic, particularly in 2020, HDI growth in Indonesia slowed, with Eastern Indonesia even experiencing negative growth. During this time, Eastern Indonesia dropped from 65.78 to 65.74, or 0.04 points, while other regions continued to increase by 0.05 to 0.06 points. Gross Regional Domestic Product (GRDP) per capita, the number of poor people, the expected length of schooling, and life expectancy are among the variables that affect HDI. Between 2012 and 2022, data about variables affecting HDI were gathered as panel data from 159 regencies/cities in 5 provinces in Eastern Indonesia. The provinces are East Nusa Tenggara, Maluku, North Maluku, Papua, and West Papua. According to the data, GRDP per capita, expected length of schooling, and life expectancy all positively affected the HDI. In contrast, the number of poor people had the opposite effect. Differences in these four elements in each of Indonesia’s regions will cause HDI disparities. The study’s policy implications are that the Indonesian government can emphasize equitable distribution and improve the quality of human development in eastern Indonesia.