Factors Evaluation of Indonesia Human Index Development in 2023 Using PLS-SEM Method

Abstract

The human development index (HDI) is a measure of the success of development in a country. Indonesia as a developing country in 2022 has an HDI value that ranks 112 out of a total of 193 countries in the world. This indicates that there is an urgent need for evaluation in increasing the HDI value in Indonesia which leads to an increase in the quality of human development. The evaluation can be done using the Structural Equation Modeling-Partial Least Square (SEM-PLS) analysis method. With 34 Indonesian provinces as observations, there are three dimensions as variables analyzed in this paper, namely economy, education, and health. These variables are analyzed based on each indicator variable. The results of the analysis show that in the economic variable, the influential indicators are the Open Unemployment Rate, GRDP per Capita at Constant Prices, and Average Wage per Hour Worker. Then in the education variable, the influential indicators are the School Participation Rate Age 7-12, the School Participation Rate Age 13-15, the Pure Enrollment Rate for Elementary/Middle School/Package A, the Pure Enrollment Rate for Junior High School/MTs/Package B, and the Pure Enrollment Rate for Senior High School/SMK/MA/Package C. Furthermore, in the health variable, there are indicators of the Percentage of Households by Province and Source of Adequate Drinking Water, and the Percentage of Ever-Married Women Aged 15-49 Years whose Last Childbirth Processed in a Health Facility which affect the value of HDI in Indonesia in 2023.