Analysis of Inter-Regional Economic Development Inequality in Indonesia: Williamson Index Approach and Determinant Factors
Keywords:
Regional Inequality , Economic Development , Williamson IndexAbstract
Purpose: This study aims to analyze the extent of inter-regional economic development inequality in Indonesia and identify its determinant factors using a quantitative approach. The study focuses on understanding spatial disparities in regional development outcomes across provinces and regions, examining whether fiscal, infrastructural, demographic, and economic variables contribute to the widening or narrowing of inequality levels.
Subjects and Methods: This study employed a descriptive-inferential quantitative method using secondary data from national statistical databases, covering all 34 provinces in Indonesia over a five-year period. The Williamson Index was used to measure the magnitude of regional inequality, while multiple linear regression was applied to identify the significance of factors such as investment allocation, labor productivity, infrastructure development, and human capital indicators on the inequality index.
Results: The analysis revealed a persistent pattern of inequality, with the highest disparities recorded between the western and eastern regions. Regression analysis confirmed that infrastructure access, educational attainment, and industrial diversification had statistically significant effects in reducing inter-regional inequality, while centralized investment distribution and limited fiscal autonomy were linked to the persistence of regional gaps.
Conclusions: The findings highlight that economic development in Indonesia remains unevenly distributed due to structural and policy-related constraints. A reformulation of regional development strategies that emphasizes equitable investment, capacity building, and infrastructure expansion is necessary to address spatial inequality and promote balanced national growth.
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