Calculation of the Equal Education Cost Index in Indonesia:  Using the Relative Importance Regression and Winsorization Approach

Ferdi  Widiputera; Wardani  Rahayu; Suryadi  Suryadi; Rumtini  Rumtini

doi:10.36941/jesr-2024-0162

Authors

Ferdi Widiputera Ministry of Education and Culture, Research and Technology, The Republic of Indonesia; State University of Jakarta, Indonesia; *Corresponding Author
Wardani Rahayu State University of Jakarta, Indonesia
Suryadi Suryadi State University of Jakarta, Indonesia
Rumtini Rumtini Universitas Terbuka Jakarta, Indonesia

DOI:

https://doi.org/10.36941/jesr-2024-0162

Keywords:

Calculation, Composite Index, Non-Formal Education

Abstract

This study examines index calculations in determining the unit costs of equivalent education using an empirical approach. The composite index used in this study compares the Construction Cost Index (CCI) to Purchasing Power Parity (PPP). The current empirical literature requires further development on calculation and comparison methods for these two indices. The study employed data from the Indonesian Central Statistics Agency (CSA), including the Construction Cost Index (CCI) and Purchasing Power Parity (PPP) data from 2021, as well as data on the allocation of School Operational Assistance (SOA) funds for non-formal education in 2022. The results indicate that the weight value of CCI is more substantial than that of PPP. The multiple regression analysis conducted with a relative importance approach reveals a favourable correlation between CCI and PPP, indicating a strong interrelationship.

Received: 2 August 2024 / Accepted: 30 October 2024 / Published: 05 November 2024