ANALYSIS OF THE EFFECT OF PUBLIC INFRASTRUCTURE ON INCOME INEQUALITY IN INDONESIA
Sr No:
Page No:
5-8
Language:
English
Authors:
Ysma Soleha*, Hady Sutjipto & Agus Salim
Received:
2026-04-16
Accepted:
2026-05-20
Published Date:
2026-06-06
Abstract:
This study aims to analyze the effect of public infrastructure on income inequality in Indonesia. The public infrastructure variables employed in this study include road infrastructure, electricity infrastructure, bridges, and information and communication technology (ICT), while income inequality is measured using the Gini Ratio. This research applies a quantitative approach using panel data regression analysis. The data used are secondary data obtained from the Central Bureau of Statistics (BPS) and related institutions covering 34 provinces in Indonesia. The analysis includes stationarity testing, multicollinearity testing, Common Effect Model (OLS), Fixed Effect Model (FEM), and Random Effect Model (REM). The findings reveal that the ICT variable has a negative and significant effect on income inequality, indicating that improved access to information and communication technology contributes to reducing the Gini Ratio. Meanwhile, the electricity variable demonstrates a positive and significant effect in the OLS and REM models, suggesting that the expansion of electricity infrastructure has not been fully accompanied by an equitable distribution of economic benefits and therefore tends to increase income inequality. In contrast, road and bridge infrastructure variables do not show a significant effect on income inequality in Indonesia. Overall, the results confirm that public infrastructure development has not yet fully generated equitable income distribution. Therefore, more inclusive and regionally balanced infrastructure development policies are required, particularly in the information and communication technology sector.
Keywords:
Public infrastructure, income inequality, Gini Ratio, ICT, panel data regression.