COST BENEFIT ANALYSIS OF GOVERNMENT INVESTMENT IN THE EDUCATION SECTOR ON THE HUMAN DEVELOPMENT INDEX IN INDONESIA IN 2023

Septia Apriliani; Haidar Husnayan Al-Haddad; Nia Rhomadhatul  Jennah; Durrotul  Hikmah; Aurelia Gina Sanya

doi:10.65886/ijde.v2i02.30

Authors

Septia Apriliani Departmen Economics, Universitas Trunojoyo
Haidar Husnayan Al-Haddad Departmen Economics, Universitas Trunojoyo
Nia Rhomadhatul Jennah Departmen Economics, Universitas Trunojoyo
Durrotul Hikmah Departmen Economics, Universitas Trunojoyo
Aurelia Gina Sanya Departmen Economics, Universitas Trunojoyo

DOI:

https://doi.org/10.65886/ijde.v2i02.30

Keywords:

Education Investment, Human Development Index, Cost-Benefit Analysis, Public Policy

Abstract

This study examines the impact of government investment in the education sector on Indonesia's Human Development Index (HDI) from 2010 to 2023 and evaluates its economic efficiency using a Cost-Benefit Analysis (PKB). The results of a simple linear regression showed a significant positive effect, with coefficients of 0.01698 and R² 0.9634, suggesting that education investment strongly explains the variation in HDI. The CBA further asserts that the social and economic benefits outweigh the costs, making education spending a fiscally sound investment. These findings highlight the importance of sustainable and efficient education funding to support human development in Indonesia.

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