MINAHASA – Investment in education has emerged as a key driver of
sustainable economic growth in Minahasa Regency, according to a study conducted
by Rini Cristie Lumantouw, Sjeddie R. Watung, Robert Winerungan, Jerry R.H.
Wuisang, and Listriyanti Palangda from the Faculty of Economics and Business at
Manado State University (UNIMA). Published in May 2026 in the Journal of
Educational Analytics (JEDA), the research found that increased investment
in education is positively associated with higher workforce productivity,
reduced poverty levels, and stronger regional economic development.
The findings are particularly significant because Minahasa has consistently
allocated a substantial portion of its regional budget to education, meeting
Indonesia’s constitutional mandate that at least 20 percent of government
expenditure be dedicated to the sector. Despite this commitment, improvements
in human resource quality and labor market outcomes have not always progressed
at the same pace, prompting questions about the effectiveness of educational
investment in supporting regional economic growth.
The researchers examined the relationship between educational investment and
economic development in Minahasa Regency using a qualitative case-study
approach. The analysis relied on secondary data from Statistics Indonesia
(BPS), local government reports, and other official documents to assess the
broader economic impact of education spending.
The study found that investment in education generates substantial benefits
for regional development. Beyond improving human capital, education contributes
to innovation, productivity growth, and institutional development, creating a
multiplier effect across the local economy.
Key findings of the study include:
- · Educational investment shows a positive correlation with economic growth in Minahasa Regency.
- · Increased education spending contributes to higher workforce productivity.
- · Educational investment supports poverty reduction efforts.
- · The development of educational institutions creates broader economic benefits through innovation and human capital development.
- · A mismatch between graduate competencies and labor market demands remains a significant challenge.
- · Equal access to quality education and the distribution of qualified teachers still require improvement.
The research also highlights the broader economic contribution of Manado
State University to the region. In addition to producing graduates and
strengthening human capital, university activities stimulate growth in service
industries, accommodation businesses, micro, small, and medium enterprises
(MSMEs), and other sectors that support local economic development.
According to Rini Cristie Lumantouw and her colleagues from Manado State
University, education should be viewed as a long-term investment in human
capital. Strong educational systems not only produce more productive workers
but also equip communities with the skills needed to adapt to economic changes
and technological advancement.
Despite the positive impact, the study identifies several challenges that
continue to limit the full benefits of educational investment. Uneven
distribution of qualified educators, gaps in educational infrastructure, and
the need for stronger alignment between graduate competencies and local labor
market requirements remain critical issues.
To address these challenges, the researchers recommend strengthening
partnerships between educational institutions and industry. Such collaboration
could help ensure that graduates possess skills that match workforce needs. The
study also encourages local governments to expand access to quality education,
improve digital infrastructure in schools, provide sustainable scholarship
programs, and maximize the role of universities as centers of innovation and
regional economic development.
The findings carry important implications for policymakers and regional
planners. Effective investment in education can serve as a powerful instrument
for improving regional competitiveness, enhancing human capital quality, and
promoting inclusive and sustainable economic growth. The study reinforces the
view that long-term economic development depends not only on physical
infrastructure but also on strategic investment in people through quality
education.
Author Profiles
- Rini
Cristie Lumantouw - Universitas
Negeri Manado
- Sjeddie R. Watung - Universitas
Negeri Manado
- Robert Winerungan - Universitas
Negeri Manado
- Jerry
R.H. Wuisang - Universitas
Negeri Manado
- Listriyanti Palangda - Universitas
Negeri Manado
Research Source
Lumantouw, R.C., Watung, S.R., Winerungan, R., Wuisang, J.R.H., &
Palangda, L. (2026). Analysis of Education Investment in Economic Growth in
Minahasa Regency. Journal of Educational Analytics (JEDA), Vol. 5
No. 2, May 2026, pp. 311–318.
DOI: https://doi.org/10.55927/jeda.v5i2.18
Journal Website: https://journaljeda.my.id/index.php/jeda
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