THE EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT INDEX, FOREIGN DIRECT INVESTMENT, AND HUMAN DEVELOPMENT INDEX ON POVERTY IN JAVA ISLAND

Abstract

Poverty in Java Island remains a significant socio-economic challenge, despite its role as Indonesia's economic center. Although provinces such as DKI Jakarta and East Java have shown improvements in infrastructure, education, and industrial development, income inequality and urban-rural disparities persist. This study aims to analyze the influence of the information and communication technology development index, foreign investment, and the human development index on poverty in Java Island. Data analysis uses multiple linear regression analysis techniques. This data uses panel data processed with E-Views 12 software. This study uses secondary data with six research objects: DKI Jakarta Province, West Java Province, East Java Province, Banten Province, DI Yogyakarta Province, and Central Java Province for 13 years from 2012 to 2024, with data sources originating from the Central Statistics Agency and the Investment Coordinating Board of the Ministry of Investment and Downstreaming. Based on the study findings, poverty is negatively and significantly affected by the information and communication technology development index. In addition, foreign investment also negatively and insignificantly affects poverty. However, the human development index also negatively and significantly influences poverty. Simultaneously, all independent variables influence the dependent variable in this study.