ANALYZING THE IMPACT OF STATE AND REGIONAL SPENDING EFFICIENCY ON THE OPEN UNEMPLOYMENT RATE IN NORTH SULAWESI PROVINCE REGARDING PRESIDENTIAL INSTRUCTION NUMBER 1 OF 2025
ANALYZING THE IMPACT OF STATE AND REGIONAL SPENDING EFFICIENCY ON THE OPEN UNEMPLOYMENT RATE IN NORTH SULAWESI PROVINCE REGARDING PRESIDENTIAL INSTRUCTION NUMBER 1 OF 2025
DOI:
https://doi.org/10.36085/jamekis.v8i2.7838Abstract
This study aims to analyze the impact of national and regional government expenditure efficiency on the open unemployment rate in North Sulawesi Province after the issuance of Presidential Instruction No. 1 of 2025. The results of the study show that there is a significant negative relationship between government expenditure efficiency and unemployment rates, meaning that the more efficient the allocation of government expenditure, the lower the unemployment rate. With an R-squared value of 57.4%, the regression model used in this study explains that more than half of the variation in unemployment rates can be explained by national and regional government expenditure efficiency. This study also finds that national and regional government expenditure efficiency policies play a crucial role in reducing open unemployment rates in North Sulawesi, particularly through the tourism, fisheries, and export-based agriculture sectors. However, this study also finds that there are several challenges that need to be addressed in the implementation of government expenditure efficiency policies, such as bureaucratic inefficiencies, limited budget allocations in productive sectors, and resistance to tighter fiscal policies
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