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Macroconomic Factors Affecting Life Expectancy and Life Expectancy Disparities in Indonesia

  • Jun 11, 2026
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Abstract Book of the 10th International Conference on Applied Research in Business, Management and Economics

Year: 2026

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Macroconomic Factors Affecting Life Expectancy and Life Expectancy Disparities in Indonesia

Dr. Kurniawan -, Made Kembar Sri Budhi, I Nyoman Mahaendra Yasa, Ni Made Tisnawati

ABSTRACT:

There are 25 out of 34 provinces in Indonesia that have a life expectancy below the national average. Provinces on the island of Java have a higher life expectancy than provinces outside the island of Java. This condition explains the disparity in life expectancy between provinces in Indonesia. This study investigates the influence of macroeconomic variables on life expectancy in Indonesia. The method chosen in this study is dynamic panel data regression. The data used in this study is sourced from the Indonesian central statistics agency in 2017-2025, with a spatial approach of 6 provinces on the island of Java, 28 provinces outside the island of Java, and 34 provinces in Indonesia. The results of the investigation explained that GDP growth per capita had a significant effect, but formal labor, drinking wage, and unemployment did not have a significant effect on life expectancy in provinces on the island of Java. Second, GDP growth per capita, formal labor, and drinking wages have a significant effect, unemployment does not have a significant effect on life expectancy in provinces outside Java. Third, GDP growth per capita, formal labor, and drinking wages have a significant effect, unemployment does not have a significant effect on life expectancy in Indonesia. There is a significant difference in the influence of formal labor and minimum wage between provinces on the island of Java and outside the island of Java. Macroeconomic interventions with a spatial approach have the potential to increase life expectancy and reduce life expectancy disparities in Indonesia.

Keywords: Formal Labor Force; GDP Per Capita; Life Expectancy; Minimum Wage; Unemployment