Calculation of the Equal Education Cost Index in Indonesia: Using the Relative Importance Regression and Winsorization Approach

This study examines index calculations in determining the unit costs of equivalent education using an empirical approach. The composite index used in this study compares the Construction Cost Index (CCI) to Purchasing Power Parity (PPP). The current empirical literature requires further development on calculation and comparison methods for these two indices. The study employed data from the Indonesian Central Statistics Agency (CSA), including the Construction Cost Index (CCI) and Purchasing Power Parity (PPP) data from 2021, as well as data on the allocation of School Operational Assistance (SOA) funds for non-formal education in 2022. The results indicate that the weight value of CCI is more substantial than that of PPP. The multiple regression analysis conducted with a relative importance approach reveals a favourable correlation between CCI and PPP, indicating a strong interrelationship. Received: 2 August 2024 / Accepted: 30 October 2024 / Published: 05 November 2024