Sustainable Development Index in Indonesia
Abstract
This study develops a Sustainable Development Goals (SDGs) Index and examines the influence of regional performance and regional financial factors on sustainable development across Indonesia. Using the framework of the Republic of Indonesia’s Government Regulation Number 6 of 2008 on Regional Government Performance Evaluation, the analysis incorporates four key dimensions: community welfare, public services, regional competitiveness, and regional financial performance. Panel data from 34 Indonesian provinces for the period 2015–2020 are analyzed using multiple linear regression with EViews 10, both at the national level and by regional classification, which are Western Indonesia (WIB), Central Indonesia (WITA), and Eastern Indonesia (WIT). The results indicate that during the study period, three provinces, which are East Nusa Tenggara, West Papua, and Papua, recorded SDGs Index scores below 50 percent, while the remaining provinces achieved scores between 50.1 and 75 percent. At the national level, public services and regional competitiveness exhibit a positive and significant effect on sustainable development, whereas community welfare and regional financial performance do not show significant influence. Regional analysis reveals heterogeneous determinants: in WIB, community welfare, public services, and regional financial performance positively affect sustainable development; in WITA, community welfare, public services, and regional competitiveness are significant; and in WIT, community welfare, regional competitiveness, and regional financial performance demonstrate positive effects. Overall, community welfare, particularly the Human Development Index, emerges as the most consistent determinant across regions, highlighting the central role of human resource development, social inclusion, and gender equality in advancing sustainable development in Indonesia.
