THE EFFECT OF INFLATION, POVERTY, AND INVESTMENT ON SUSTAINABLE DEVELOPMENT IN WEST KALIMANTANPROVINCE

The purpose of this study is to examine how big the effect of Inflation, Poverty, and Investment have on Sustainable Development in West Kalimantan Province, partially or simultaneously. Sustainable Development in this study was measured using the Human Development Index (HDI) indicator. This research was conducted because the development of West Kalimantan HDI, when compared to other provinces in Kalimantan, still occupies the lowest position. This research was a quantitative descriptive and used secondary data, the West Kalimantan Financial Report and inflation data. The data used in this study was the annual time series data from 2007-2016. The analysis technique used in this study was Multiple Linear Regression by using SPSS version 25. The partial test results showed that Inflation and Investment had no effect on Sustainable Development in West Kalimantan Province, while Poverty had an effect on Sustainable Development in West Kalimantan Province. Based on the results of the F Test, it showed that Inflation, Poverty and Investment simultaneously had effects on Sustainable Development in the province of West Kalimantan.


INTRODUCTION
Sustainable Development Goals (SDGs) are proposed to be a development of sustainability and equality that is able to face new challenges that will benefit future generations. Sustainable Development not only concentrates on environmental issues but is broader than that which includes economic development and social development. Fauzi (2009) explains that the concept of sustainability is a simple, yet complex concept hence the notion of sustainability is very multidimensional and multi-interpreted. The concept of SDGs has 17 goals including a number of targets related to human development, namely the third, fourth and eighth goals. The third goal is to guarantee a healthy life and improve the welfare of the population at all ages. The fourth goal is to guarantee the quality of education that is fair and inclusive and increase the opportunity for life-long learning for all, while the eighth goal is to promote inclusive and sustainable economic growth, full and productive employment opportunities, and decent work for all (Human Development Index, 2: 2017).

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Based on the Human Development Report (HDR)

Source: Central Statistics Agency
The HDI of West Kalimantan from 2007-2016 shows that the province's HDI has increased. Although the increase is below 0.5% per year, the trend continues to improve. HDI in West Kalimantan Province is still in the status of "medium" and based on the obtained data, West Kalimantan is in a ranking of 10 provinces with the lowest HDI.
Many factors can affect sustainable development, for example, inflation, poverty and investment. Based on previous studies, research on Sustainable Development is still rarely conducted, but the HDI indicators have been included in many previous studies but with different variables and there are still differences in research results so researchers want to reexamine the research with different samples. Manik's research (2013) shows that the Inflation variable does not affect the HDI, while poverty affects the HDI.Zainudin (2015) and Rohmah (2017) research shows that there is an effect of inflation on the Human Development Index. Fatimah's research (2018) states that poverty has no significant effect on HDI while Dewi (2017) states that poverty has a significant effect on HDI. Royan's research (2015) states that investment affects the Human Development Index.

LITERATURE REVIEW
According to Madura (2007), inflation is an increase on the level of prices of goods & services in general over a certain period of time. The inflation rate can be estimated by measuring the percentage change in the consumer price index, which indicates the price of a large number of consumer products. Factors that can cause an inflation include costs and demand, a situation where higher prices are imposed by companies as a result of higher production costs due to high demand or in this case it is called demand pull inflation. A situationin which prices of products and services are pulled up due to strong consumer demand.
Jeff Madura also explained that inflation consists of 4 types, such as:  Creeping inflation is an inflation that is easy to control and has not disrupted a country's economy. An increase in prices of goods / services in general, which is under 10% per year and can be controlled.
 Walking inflation is an inflation that can reduce the level of prosperity of the middleincome people, but it does not endanger the economic activities of a country. This inflation is in the range of 10% -30% per year.
 Galloping inflation is an inflation which results in economic chaos in a country. In this condition, people generally prefer to save goods instead of money because the interest is much lower than the value of inflation. This inflation is in the range of 30% -100% per year.
 Hyperinflationis an inflation that has messed up a country's economy and is very difficult to control despite monetary and fiscal policies. This inflation is in the range of 100% and above per year. According to Husnan (2017), investment is a delay of current consumption to be put into productive assets for a certain period of time. Investment in earning assets can be in the form of real assets (houses, land and gold) or in the form of financial assets (securities) that are traded among investors. Investors make investments to improve their utility in the form of financial welfare. Investments in financial assets can be in the form of direct investments and indirect investments. Direct investment can be done by buying financial assets that can be traded on the money market or capital market while indirect investment is done by buying securities from investment companies. It is said that multicollinearity occurs if the tolerance value is less than 0.10 or the VIF value is greater than 10.

c. Heteroscedasticity Test
A good regression model is a regression model that has homoscedasticity data or there is no heteroscedasticity occurred.

d. Autocorrelation Test
A good regression model is a regression that is free from autocorrelation so it can be more efficient. To detect the presence or absence of autocorrelation problems is conducted through testing the Durbin-Watson value (DW Test). The coefficient of determination test is carried out to find out the level of accuracy in regression analysis, this is indicated by the magnitude of the coefficient of determination (R 2 adjusted) between zero and one or 0 <R 2 <1.

Classical Assumption Test
To conduct test using multiple linear regression it is required to conduct the Classical Assumption Test first and the result of this test is presented in a Based on the table, it shows that the DW value of 2.534. This value will be compared with the Durbin Watson table with a significance value of 5%. The amount of data in this study is 10 and the independent variable was 3 (k = 3), from the DW table, the value of d u is 2.0163. So, it can be stated that there is no autocorrelation problem in the regression model in this study, because the DW value is higher than the value of D u which is 2.534 > 2.0163, so it already meets the requirements to be tested with multiple linear regression.

Multiple Linear Regression Analysis
Multiple Linear Regression Analysis was done by processing data using SPSS version 25 which is formulated as follows:  If the inflation and investment value is fixed and poverty is increased by 1 unit, then Sustainable Development will decrease by 0.018.  If the inflation and poverty value are fixed and investment is increased by 1 unit, then Sustainable Development will increase by 0.005. a. Partial Test (t Test) From the results of the partial analysis above, it appears that investment has an important role in the growth of Sustainable Development or the Human Development Index because out of the three independent variables, only investment has a significant and positive effect, which means that: when the investment climate in West Kalimantan increases, it will have an impact on improving the Sustainable Development index.
b. Simultaneous Significance Test (F Test)