Optimalisasi Pendapatan Daerah Dalam Peningkatan Kesejahteraan Masyarakat Jawa Barat

Abstract

This research aims to assess the impact of regional income on the welfare of the people of West Java. It employs panel data encompassing variables of regional income and welfare in the West Java Province and its Regency/City from 2019 to 2023. The regional income variable is represented by Regional Original Income (PAD), General Allocation Funds (DAU), and Special Allocation Funds (DAK). Conversely, the welfare variable is represented by economic growth, the unemployment rate, The Human Development Index (HDI), the poverty rate, and the percentage of households with access to adequate sanitation.

The findings of this research indicate that neither PAD, DAU, nor DAK affect economic growth and the unemployment rate in West Java. However, the results show that PAD has a significant positive effect on HDI, whereas DAU and DAK do not impact HDI. Regarding the poverty level, the findings reveal that DAU has a significant negative effect, while both PAD and DAK have a significant positive effect on poverty. Additionally, testing the percentage of households with access to adequate sanitation demonstrates that PAD has a significant positive effect, but DAU and DAK do not influence access to adequate sanitation.

It is hoped that the recommendations derived from this research will provide valuable insights for the West Java Regional Government in developing strategies to enhance community welfare.