Indonesian Provinces SDGs Composite Index: Lampung Province Analysis

Reny Andriati and Arief Yusuf
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Reny Andriati: BPS-Statistics Indonesia

Economics and Finance in Indonesia, 2021, vol. 67, 1-18

Abstract: Publications of Sustainable Development Goals (SDGs) have mainly been conducted at a national level and separately for each goal. No prior research has been done on SDGs composite index at a provincial level in Indonesia. It is necessary to create a composite index that presents a single value at the provincial level to enable regional evaluation. The Indonesia Province SDGs composite index is developed from indicators based on Statistics Indonesia gathered from several publications. The data sources are the National Socio-Economic Survey (Susenas) and the Basic Health Research (Riskesdas) which were linked surveys held in 2018. Principal Component Analysis and Factor Analysis are used as the methods to select the indicators of the SDGs. Those selected indicators are then normalized using the min-max method and subsequently weighted using factor loading derived from the principal component analysis. Finally, the indicators are aggregated using an arithmetic mean to determine the composite index. The Indonesia Province SDGs composite index is an approach to measure achievement of SDGs agenda. In addition, each goal achievement is summarized as a goal index. The SDGs composite index for Lampung Province is 52.2%, meaning that Lampung Province is 52.2% of the way to fully achieving the SDGs, according to the measures used to calculate this index. The findings on goal index suggest that development is highly requested on public services such as housing and water supply.

Keywords: SDGs; composite index; principal component analysis; factor analysis (search for similar items in EconPapers)
JEL-codes: C38 C43 Q01 (search for similar items in EconPapers)
Date: 2021
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