ANALYSIS OF FACTORS INFLUENCING REGIONAL DISPARITIES IN CENTRAL JAVA PROVINCE

Abstract

Regional inequality refers to a condition where there are disparities in the level of development between one region and another. This phenomenon remains a major challenge in achieving economic equity in Indonesia, including in Central Java Province, which experiences a relatively high level of regional inequality. This study aims to analyze the factors influencing regional inequality in Central Java Province during the period 2005–2023. The dependent variable in this study is regional inequality, measured using the Williamson Index. The independent variables include agglomeration, the gap in regional independence ratio, the gap in general allocation funds, the gap in the human development index, and the labor force gap. The analytical tool used is multiple linear regression, and the data employed is secondary data. Based on the study's results, it was found that the variables of agglomeration, regional independence ratio gap, general allocation fund gap, human development index gap, and labor force gap collectively have a significant effect on regional inequality, with an explanatory power of 53.8%. Partially, the labor force gap variable has a significant effect on regional inequality, while the agglomeration, regional independence ratio gap, general allocation fund gap, and human development index gap variables were found to have no significant individual effect. It is expected that this study can assist the government in developing strategic planning for regional development, particularly in areas that are still underdeveloped.