Government Investment in The Education Sector for Human Capital Development

*Muhammad Suhaili  -  Universitas Negeri Yogyakarta, Indonesia
Ani Widayati  -  Universitas Negeri Yogyakarta, Indonesia
Abdul Fatah  -  MTsN 1 Lombok Tengah, Kementerian Agama Kabupaten Lombok Tengah, Indonesia
Received: 7 Jan 2020; Published: 31 Oct 2020.
Open Access Copyright (c) 2020 The Indonesian Journal of Planning and Development

Citation Format:
Abstract
This study aims to examine the effect of government investment in the education sector through the education budget including Special Allocation Funds-Physical (SAF Physical) and Special Allocation Funds-Non-Physical (SAF Non-Physical) on the Human Development Index (HDI). The study consists of two independent variables i.e., Special Allocation Funds-Physical (SAF Physical) and Special Allocation Funds-Non Physical (SAF Non-Physical), and one dependent variable: Human Development Index (HDI). The method used is a quantitative approach with multiple regression analysis-ordinary least square (OLS). The data used is secondary data obtained from the Central Statistics Agency/Badan Pusat Statistik (BPS) in 2010-2018. The results showed that simultaneously Special Allocation Funds-Physical (SAF Physical) and Special Allocation Funds-Non Physical (SAF Non-Physical) significantly influence the Human Development Index (HDI). Partially the Special Allocation Funds-Physical (SAF Physical) has a negative and insignificant effect, while the Special Allocation Funds-Non-Physical (SAF Non-Physical) has a positive and significant effect on the Human Development Index. Thus, the government is expected to be able to increase education investment by allocating more budgets on both physical and non-physical investments to improve the quality of Human Resources.

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