Determinants of Environmental Quality Index (EQI) in Indonesia in 2018-2022

The environment is a critical issue in sustainable development in Indonesia, with significant variations in environmental quality between regions. This study seeks to examine the influence of the Regional Government Budget, COVID-19 (as a dummy variable), Gross Regional Domestic Product (GRDP), and the Human Development Index (HDI) on the Environmental Quality Index (EQI) in Indonesia. The data for this study were obtained from BPS–Statistics Indonesia and the Ministry of Environment and Forestry, covering the period from 2018 to 2022. The analysis employs multiple linear regression using panel data. Panel model testing indicates that the fixed effects model with cross-sectional lag provides the best fit. The results show that, collectively, all variables have a significant influence on Indonesia's Environmental Quality Index (EQI). Individually, the Regional Government Budget for environmental purposes, the COVID-19 dummy variable, and the Human Development Index (HDI) have a significant positive impact on EQI. In contrast, Gross Regional Domestic Product (GRDP) has a significant negative effect. These findings highlight the need for comprehensive macro-socioeconomic policies to sustain and enhance environmental quality in Indonesia.