Regional Analysis Of Income Distribution Inequality In Indonesia

Abstract

This study aims to analyze the differences in the performance of per capita GRDP and inequality across 34 provinces before and after COVID-19, and to examine the influence of per capita income, education, and unemployment on income distribution inequality in Indonesia during the 2015–2024 period. The variables used are income inequality (Gini Ratio), per capita income (Log PDRB per capita), education (average years of schooling), and unemployment (open unemployment rate). This research is quantitative and uses secondary panel data, combining cross-section data for 34 provinces with time series from 2015 to 2024. The analysis techniques include panel data regression, supported by Eviews 12, and Importance-Performance Analysis (IPA) for quadrant mapping. The results indicate that per capita income has a negative and significant effect on income distribution inequality, while education also has a negative and significant effect. Conversely, the unemployment rate does not show a statistically significant effect. The IPA quadrant analysis reveals shifts in provincial positions pre- and post-COVID-19, reflecting the regional dynamics of inequality and economic performance, with some provinces like Central Sulawesi successfully achieving the "Ideal Inclusive Growth" quadrant.Keywords: Economic Growth; Investment; Urbanisation; Employment Opportunity.