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The Effect of Regional Financial Performance on the Human Development Index (HDI) in Indonesia from 2020-2024

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Quantitative analysis shows financial performance significantly affects HDI across regions in Indonesia, indicating improvement opportunities.

The analysis indicates that financial performance impacts the human development index in Indonesia positively and negatively.
Results show that fiscal decentralization and PAD effectiveness significantly improve HDI, while regional dependence lowers it.
Panel data regression analysis was utilized with a random effect model to evaluate the relationship between variables.
Findings suggest enhancing fiscal capacity can boost public services and HDI, while managing regional dependence is crucial.

Salam et al. (2025) studied this question.

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Quantitative analysis shows financial performance significantly affects HDI across regions in Indonesia, indicating improvement opportunities.