The Effect of Workforce Education Level on Profitability (ROA) in Indonesia’s Defense Industry for the 2017–2023 Period

This study aims to analyze the effect of workforce education levels on the profitability (Return on Assets/ROA) of the defense industry in Indonesia during the 2017–2023 period. The independent variables tested include workforce education levels: secondary school, diploma, bachelor's (S1), master's (S2), and doctoral (S3) degrees. This research employs a quantitative method using panel data regression with the Panel Least Squares approach. The sample consists of five defense industry companies with 35 observations. The findings reveal that workforce education at the bachelor's, master's, and doctoral levels positively impacts ROA, whereas secondary school and diploma levels are not significant. These results highlight the importance of improving workforce education quality to enhance the profitability of the defense industry.