Infrastructure is one of the inputs that could affect the growth of a region. The difference in infrastructure development between regions is an obstacle for Indonesia in the rise of economic growth, directly proportional to the increase of inequality between regions. This study aims to determine the effect of infrastructure development carried out by the Government of Indonesia. In this study, infrastructure is divided into 2: hard infrastructures, where there are electrification variables, access to water and road access, and soft infrastructure, explained through variables of life expectancy, literacy rates, and school enrolment rates. This study is conducted using the Ordinary Least Square analysis techniques to explain the growth-inequality between regions using the Williamson Index. Principal Component Analysis (PCA) is applied in this study to define hard infrastructure variables and soft infrastructure. This study shows that the development of hard infrastructure and soft infrastructure in various regions in Indonesia has reduced inequality in various regions in Indonesia. This research is expected to provide information on the influence of hard infrastructure and soft infrastructure development on the imbalance of economic growth between regions in Indonesia.

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Siahaan, C. J., Taufiqurahman, M. K., Andrianto, B., & Iman, M. N. (2020). Unequal economic growth between regions in Indonesia: Hard infrastructure or soft infrastructure? International Journal of Business and Administrative Studies, 6(2), 97-110. doi: https://dx.doi.org/10.20469/ijbas.6.10004-2