The Impact of Fiscal Policy Allocations in Education, Health, and ICT on Indonesia Human Development Index (HDI)

Improving the quality of human resources is a fundamental foundation for promoting inclusive and sustainable human development. In Indonesia, the optimization of fiscal policy directed toward strategic sectors such as education, health, and Information and Communication Technology (ICT) has become increasingly important given the complexity of development challenges and interregional disparities. This study aims to analyze the partial and simultaneous effects of fiscal policy in the fields of education, health, and ICT on the Human Development Index (HDI) in Indonesia. Fiscal policy in this research is proxied by government expenditures in each respective sector. The method used in this study is a quantitative approach with time series data covering 34 years, from 1990 to 2023. The data analysis technique employed is multiple linear regression using the Autoregressive Distributed Lag (ARDL) model. The results show that, partially, government expenditure on education has a positive and significant effect on HDI in Indonesia, both in the short and long term. Meanwhile, health sector spending has a negative and significant effect on HDI in the short term, but negative and not significant in the long term. On the other hand, government expenditure on ICT has a positive but not significant effect on HDI, both in the short and long term. Simultaneously, government expenditures in the fields of education, health, and ICT significantly affect the HDI in Indonesia.