Email this article Does Risk Management Catalyze The Impact of Government Spending on Human Development Quality? Evidence From Indonesia
Abstract
This study examines whether risk management catalyzes the impact of local government spending on human development quality in Indonesia, while analyzing spatial disparities between Western and Eastern Indonesia. We utilize a set of unbalanced panel data from all Indonesian district/cities local governments during 2021-2023 with a total of 1,444 observations. We discover that human development quality in Indonesia still experiences significant diparities between west and east Indonesia region. The empirical findings demonstrate that government education and economic expenditures, along with risk management deliver positive impact on human development quality. However, government healthcare spending does not exhibit any significant impact. Moreover, we also reveal that risk management exhibits no significant moderating role in the relationship between government spending and human development quality in Indonesia, suggesting that risk frameworks currently operate in bureaucratic compliance rather than as strategic catalyst. This study concludes that expanding fiscal volume alone is insufficient to elevate human development. The government pay more attention to value-for-money governance in realizing government spending, not merely focused on volume-based mandatory spending framework.
Penelitian ini menguji apakah manajemen risiko mengatalisasi pengaruh belanja pemerintah daerah terhadap kualitas pembangunan manusia di Indonesia, sekaligus menganalisis ketimpangan spasial antara Indonesia Bagian Barat dan Bagian Timur. Penelitian ini menggunakan data panel dari seluruh pemerintah daerah kabupaten/kota di Indonesia selama periode 2021-2023 dengan total 1.444 observasi. Penelitian ini menemukan bahwa kualitas pembangunan manusia di Indonesia masih mengalami ketimpangan yang signifikan antara wilayah Indonesia Barat dan Timur. Temuan empiris menunjukkan bahwa belanja pemerintah di bidang pendidikan dan ekonomi, serta manajemen risiko, memberikan dampak positif terhadap kualitas pembangunan manusia. Namun, belanja pemerintah di bidang kesehatan tidak menunjukkan pengaruh yang signifikan. Selain itu, penelitian ini juga mengungkapkan bahwa manajemen risiko tidak menunjukkan peran moderasi yang signifikan dalam hubungan antara belanja pemerintah dan kualitas pembangunan manusia di Indonesia. Hal ini mengindikasikan bahwa kerangka kerja risiko saat ini baru beroperasi sebatas kepatuhan birokrasi, bukan sebagai katalis strategis. Penelitian ini menyimpulkan bahwa memperbesar volume fiskal saja tidak cukup untuk meningkatkan pembangunan manusia. Pemerintah harus memberikan perhatian lebih pada tata kelola value-for-money dalam realisasi belanja pemerintah, dan tidak hanya berfokus pada kerangka kerja mandatory spending yang berbasis proporsi.
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DOI: http://dx.doi.org/10.20961/jab.v26i1.1814
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