The Effect of Human Development Index (HDI) and Open Unemployment Rate on Economic Growth in Indonesia in the Islamic Economic Perspective in 2015- 2025

Abstract

This study aims to analyze the effect of the Human Development Index (HDI) and Open Unemployment Rate on economic growth in Indonesia during 2015–2025 from the perspective of Islamic economics. The background highlights Indonesia’s relatively stable economic growth around 5% before the pandemic, the contraction in 2020, and challenges related to human resource quality and employment. The research employs a quantitative approach using secondary data from the Central Bureau of Statistics, analyzed through multiple linear regression with E-Views 10 software. The findings reveal that HDI has a negative effect on economic growth, while TPT has a negative and significant effect. Simultaneously, both variables significantly influence economic growth, with an F-statistic value of 8.54 greater than the F-table value of 4.46 at α = 0.05, and a probability of 0.022 < 0.05. The determination coefficient of 0.68 indicates that HDI and TPT explain 68% of the variation in economic growth. The study concludes that improving human development quality and controlling open unemployment are crucial factors in fostering sustainable economic growth in line with maqashid sharia principles.