<![CDATA[The primary purpose of countries, particularly emerging countries, is economic development. Equal economic development in each region of a country is both an aspiration and a problem. Unequal economic development, often known as regional inequality, is an issue in achieving social wellbeing. This research can be used to improve understanding of the factors that drive regional inequality in Indonesia, as well as to develop policy recommendations that the government can apply to minimize inequality in Indonesia. This study employs dynamic panel regression with a cross-section of 33 provinces in Indonesia and a time series of 2012-2022. The method utilized is the Generalized Method of Moment (GMM), which includes the First Different GMM (FD-GMM) and System GMM (SYS-GMM) model approaches, parameter significance tests, model specification tests, bias tests, and model selection. According to the findings of this study, an increase in domestic investment will increase regional inequality by 0.147 percent, reduce regional inequality by 0.775 percent, increase the Human Development Index (HDI) by 0.284 percent, increase agglomeration by 2.602 percent, and increase poverty by 0.146 percent. When all independent factors are held constant, regional inequality decreases by 18.104 percent. Furthermore, the results of this study reveal that all independent variables have a significant impact on regional inequality in Indonesia.]]>
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