Analysis of the Impact of PIP Education Subsidies on School Participation in Central Java Province in 2023

Nayla Azzahra Wirataman; Laksmi Yustika Devi; Ahmad Faris Maula Haq; Na,ila Nurul Minan; Widya Arnas Nur Azizah; Farah Dhiba Khaira

doi:10.37034/infeb.v8i3.1465

Analysis of the Impact of PIP Education Subsidies on School Participation in Central Java Province in 2023

Nayla Azzahra Wirataman Departemen Ekonomika dan Bisnis, Sekolah Vokasi, Universitas Gadjah Mada Laksmi Yustika Devi Departemen Ekonomika dan Bisnis, Sekolah Vokasi, Universitas Gadjah Mada Ahmad Faris Maula Haq Departemen Ekonomika dan Bisnis, Sekolah Vokasi, Universitas Gadjah Mada Na,ila Nurul Minan Departemen Ekonomika dan Bisnis, Sekolah Vokasi, Universitas Gadjah Mada Widya Arnas Nur Azizah Departemen Ekonomika dan Bisnis, Sekolah Vokasi, Universitas Gadjah Mada Farah Dhiba Khaira Departemen Ekonomika dan Bisnis, Sekolah Vokasi, Universitas Gadjah Mada DOI: https://doi.org/10.37034/infeb.v8i3.1465 Keywords: Program Indonesia Pintar, School Participation, Propensity Score Matching, Educational Subsidy, Central Java Abstract Education is an important factor in human development and long-term economic growth through improving human resource quality. However, low school enrollment, particularly among disadvantaged groups, remains a challenge requiring appropriate policy intervention. Through the Program Indonesia Pintar, the Indonesian government provides educational subsidies to increase access and school participation for students from low-income families. This study aims to analyze the impact of PIP on school participation among children aged 6–21 years in Central Java Province in 2023. The study uses secondary data from the March 2023 National Socio-Economic Survey Core Module with a sample of 22,286 individuals. The analysis applies Propensity Score Matching to address selection bias between PIP recipients and non-recipients. The analysis includes propensity score estimation using logistic regression, common support testing, covariate balance testing, and estimation of the Average Treatment Effect on the Treated. The covariates include home ownership status, floor quality, sanitation, access to adequate drinking water, household size, gender, and age. The results show that the matching process successfully balanced the characteristics of recipient and non-recipient groups. The ATET estimation produces a coefficient of 0.0375, significant at the 5 percent level, indicating that PIP recipients have a 3.75 percent higher probability of school participation than non-recipients. These findings demonstrate that PIP is effective in improving school participation and should be strengthened as a policy instrument to promote equal access to education, particularly for disadvantaged children. Downloads Download data is not yet available. References Hanushek, E. A., & Woessmann, L. (2008, September). The Role of Cognitive Skills In Economic Development. Journal of Economic Literature. DOI: https://doi.org/10.1257/jel.46.3.607 . Devi Palaka, C., & Prasad, S. V. V. D. M. B. (2025). 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Download Published 2026-09-30 Issue Vol. 8, No. 3 (September 2026) Section Articles How to Cite Wirataman, N. A., Devi, L. Y., Haq, A. F. M., Minan, N. N., Azizah, W. A. N., & Khaira, F. D. (2026). Analysis of the Impact of PIP Education Subsidies on School Participation in Central Java Province in 2023. Jurnal Informatika Ekonomi Bisnis, 8(3), 680-686. https://doi.org/10.37034/infeb.v8i3.1465 ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX This work is licensed under a Creative Commons Attribution 4.0 International License.