The Impact Of The KartuPrakerja Program On Unemployment Using Geographically Weighted Panel Regression (GWPR) In Indonesia

Abstract

Various efforts and programs are being implemented by the government to continue to reduce unemployment rates and the proportion of young people who are not working, not pursuing education, or training. The pre-employment card is a training cost assistance for the Indonesian people who want to acquire or enhance their skills. According to regulations, all individuals aged 18 and above who are not currently attending school/college can enroll in this program. Furthermore, the program also focuses on job seekers, workers who have been laid off, workers who need competency enhancement (including those who have been furloughed and micro & small business owners). From May 2020 to April 2023, this program has been conducted in 51 waves with a total of 14.9 million participants. As for 2023, the government has allocated a budget of Rp4.37 trillion with a target of 1 million recipients. This study aims to examine the impact of the pre-employment card program and other macroeconomic variables such as HDI, minimum wage, inflation, and economic growth using Geographically Weighted Regression (GWR) model. The resulting model shows a determination coefficient of 87.04%, with the factors most influencing the decrease in unemployment rates in Indonesia being HDI, job market size, and minimum wage. Additionally, the pre-employment card program is only effective in reducing unemployment rates in 7 provinces in Indonesia, namely Riau Island, Riau, Jambi, DKI Jakarta, Central Java, Yogyakarta, and East Nusa Tenggara