Human Development Quality and Its Problems in Indonesia

Abstract

Human development has been the main theme of the world along with the publication of the Human Development Report first time by the United Nations in 1990. Development orientation shifted from economic development which only focuses on simply revenue growth to be human-oriented development. One of the indicators used to measure the success rate of development of a society is the Human Development Index (HDI). HDI value created by the United Nations for Development Programme in 2010, ranked Indonesia at 108 of 169 countries with a HDI score of 0.600. This score is better than the score in 2009 of 0.593, with a rank at 111. This study examines the effect of economic growth, income distribution, income per capita, population growth rate, unemployment rate, the number of poor, local government budget allocations for education, local government budget allocations for health, local government budget allocations for the environment, local government budget allocations for housing and public facilities, the implementation of regional autonomy, the implementation of the Law no. 20 of 2003 on National Education System toward human development quality in Indonesia? This study uses panel regression methods and the data cross of 26 (twenty six) provinces in Indonesia as well as the data series from 1993-2009. The results showed there were six variables that affect significantly i.e : economic growth, per capita income, population growth, growth in the unemployment, allocation of education fund and dummy of regional autonomy toward human development quality. From the six variables, only per capita income, allocation of government funds spent on education and dummy of regional autonomy are positively related to human development quality, and in the meantime; economic growth, population growth, and growth in the unemployment is negatively related to human development quality. Variables income distribution, the number of poor, local government allocation of funds expended for health sector, local government allocation of funds expended for environmental, local government allocation of funds expended for housing and public facilities, as well as dummy Act No.20 of 2003 about the national education system had no significant effect toward human development quality.