The Impact of Domestic Investment, Human Development Index (HDI), and TPT on Poverty in Riau Islands Province in 2017-2024

Authors

Marsella Br Tambunan State University of Surabaya
Aprillia Nilasari State University of Surabaya

DOI:

https://doi.org/10.55927/ijsmr.v4i3.13

Keywords:

Domestic Investment, Human Development Index, Open Unemployment Rate, Poverty Line, Island Regions

Abstract

This study aims to analyze the influence of Domestic Investment (PMDN), Human Development Index (HDI), and Open Unemployment Rate (TPT) on the poverty line in the Riau Islands Province during the 2017-2024 period. This research employs a quantitative approach with panel data regression analysis using EViews 12, covering seven districts/cities with secondary data from BPS and BKPM. The results show that partially, PMDN and HDI have a positive and significant effect on the poverty line, while TPT has no significant effect. Simultaneously, all three variables have a significant effect with a determination coefficient of 95.97%. These findings indicate that capital-intensive investment concentrated in Batam has not reached marine-based productive sectors in the hinterland, while HDI improvement is enjoyed more by urban communities. This study implies the need for equitable investment distribution policies and strengthening the marine economic value chain to effectively reduce poverty in coastal communities.

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