Jurnal Manajemen Ekonomi dan Bisnis (JMEB) Volume 04 No.
Tahun 2025
E-ISSN: 3032-5382
DOI: 10.
THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON
PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022
Zefanya Grace Enos Simbolon1 Pardomuan Robinson Sihombing2 1Management.
Faculty of Economics and Business.
UPN AuVeteranAy Jakarta 2BPS-Statistics Indonesia 12310111033@mahasiswa.
2robinson@bps.
Abstract Education and age are two demographic factors that are believed to have an influence on individuals' economic Understanding the relationship between these variables is important in designing effective economic policies.
The purpose of this study is to see how age and education level impact people's purchasing power in Indonesia.
Purchasing power, which can be affected by demographic factors such as age and educational background, is an important indicator of a person's economic well-being.
This study employs quantitative techniques using multiple linear regression analysis using cross-sectional data from 34 provinces in Indonesia in 2021.
Secondary data sources include the Central Bureau of Statistics (BPS) and other relevant sources.
The results showed that, with a coefficient of 0.
352, education level has a positive and significant influence on purchasing power.
This shows that the higher a person's level of education, the greater their ability to purchase goods and services.
On the other hand, the age variable does not have a significant influence on purchasing power, but the productive age group of 25 to 55 years old seems to have better wealth.
This result can be used by the government to increase people's purchasing power by making economic policies and programmes to increase access to education.
Keywords: Age.
Economic Welfare.
Education Level.
Purchasing Power.
Regression Analysis Abstrak Pendidikan dan usia merupakan dua faktor demografis yang diyakini berpengaruh terhadap kondisi ekonomi individu, termasuk daya beli mereka.
Memahami hubungan antara ic Submitted: 03/07/2025 ic Accepted: 03/10/2025 icPublished: 03/10/2025 THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 variabel-variabel ini penting dalam merancang kebijakan ekonomi yang efektif.
Tujuan dari penelitian ini adalah untuk melihat bagaimana usia dan tingkat pendidikan memengaruhi daya beli masyarakat di Indonesia.
Daya beli, yang dapat dipengaruhi oleh faktor-faktor demografis seperti usia dan latar belakang pendidikan, merupakan indikator penting dari kesejahteraan ekonomi seseorang.
Penelitian ini menggunakan teknik kuantitatif dengan analisis regresi linier berganda menggunakan data cross-sectional dari 34 provinsi di Indonesia pada tahun 2021.
Sumber data sekunder berasal dari Badan Pusat Statistik (BPS) dan sumber relevan Hasil penelitian menunjukkan bahwa dengan koefisien sebesar 0,352, tingkat pendidikan memiliki pengaruh positif dan signifikan terhadap daya beli.
Hal ini menunjukkan bahwa semakin tinggi tingkat pendidikan seseorang, semakin besar kemampuannya untuk membeli barang dan jasa.
Di sisi lain, variabel usia tidak memiliki pengaruh yang signifikan terhadap daya beli, namun kelompok usia produktif antara 25 hingga 55 tahun tampak memiliki kesejahteraan yang lebih baik.
Hasil ini dapat dimanfaatkan oleh pemerintah untuk meningkatkan daya beli masyarakat melalui kebijakan dan program ekonomi Kata kunci: Usia.
Kesejahteraan Ekonomi.
Tingkat Pendidikan.
Daya Beli.
Analisis Regresi.
Introduction One important measure of people's well-being is their economic ability to fulfil their needs, or purchasing power.
Indonesia's economy, as measured by Gross Domestic Product (GDP), has shown a positive growth trend over the past few decades.
The average growth rate is 5% per year (World Bank, 2.
(RUKUNDO, 2.
Nonetheless, this progress does not always correlate positively with an evenly distributed improvement in people's welfare.
According to data from the Central Bureau of Statistics (BPS, 2.
, inequality in consumption expenditure between income groups is still quite large.
in 2022, the gini ratio was 0.
This shows that the increase in people's THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 purchasing power has not fully reflected economic growth, especially among the unproductive and less-educated age groups.
Purchasing power not only shows a person's ability to obtain goods and services, but also indicates their financial stability and standard of living.
Indonesia, it is suspected that factors such as age and education level have a significant influence on how much money a person spends on Nonetheless, the extent to which these two factors influence purchasing power still needs to be studied further.
Often, the success of a country's development is measured through indicators such as per capita income or Gross Domestic Product (GDP).
However, this method is considered too macro and does not fully reflect the real condition of society, especially in terms of the ability of individuals to fulfil their daily needs.
However, strong purchasing power can show that people really feel economic growth, especially in terms of improving their welfare.
In many countries, including Indonesia, education levels are often associated with more employment and income opportunities.
Data from the Central Bureau of Statistics (BPS) shows that workers with only primary education tend to receive lower average wages than workers with higher education.
However, age is also considered a determinant, as the productive age group .
-55 years ol.
usually has a more stable income and working capacity compared to the young or The purpose of this study is to see to what extent age and education level affect the purchasing power of Indonesians.
It is expected that this study can provide an empirical picture of the relationship between these variables by using secondary data from BPS and multiple linear regression analysis method.
This research can be used by the government to make more targeted policies in education and economic improvement (Montgomery et al.
, 2.
Using a quantitative methodology, this study aims to analyse the effect of age and education level on the purchasing power of Indonesians.
The data used in this study comes from the National Socio-Economic Survey (Susena.
conducted in 2022, covering 10 provinces in Indonesia.
To determine the extent to which age and education variables contribute to variations in purchasing power, multiple linear regression analysis (RPLS) is applied.
RPLS controls for other factors such as gender, region of residence, and employment Previous studies have looked at the relationship between THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 education, age, and purchasing power.
However, these studies were limited to specific regions or sectors.
Therefore, this study analyses data from 10 Indonesian provinces to provide a more comprehensive Consequently, the results of this study are expected to contribute to efforts to improve people's welfare by using more measurable and data-driven methods.
Tabel 1.
5 countries with the largest levels of purchasing power parity 1980-2024.
Rank
Country Purchasing Power Parity Level China
40,15
USA
25,73
India
18,41
Japan
6,54
Indonesia
5,36
Source: Databoks Proyeksi IMF: PDB Paritas Daya Beli Indonesia Mencapai US$ 5,4 Triliun pada 2024 This result has strong relevance to research on the effect of age and education level on the purchasing power of Indonesians.
Although the national p rate appears to be high, the purchasing power of individuals is not evenly distributed.
People with higher education (S1/S.
have 2-3 times the purchasing power compared to those who only graduated from primary school (BPS, 2.
In addition, the productive age group of 30 to 50 years accounts for 68% of household consumption expenditure (Susenas, 2.
The fact that education plays an important role in increasing people's purchasing power has been demonstrated.
While junior high school graduates only earn 1.
8 million per month, undergraduate employees earn 4.
7 million per month according to data (Sakernas.
This result has strong relevance to research on the effect of age and education level on the purchasing power of Indonesians.
Although the national p rate appears to be high, the purchasing power of individuals is not evenly distributed.
People with higher education (S1/S.
have 2-3 times the purchasing power compared to those who only graduated from primary school (BPS, 2.
In addition, the productive age group of 30 to 50 years accounts for 68% of household consumption expenditure (Susenas, 2.
The fact that education plays an important role in increasing people's purchasing power has THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 been demonstrated.
While junior high school graduates only earn 1.
million per month, undergraduate employees earn 4.
7 million per month according to data (Sakernas, 2.
II.
Methodology This research uses quantitative methods to analyze the relationship between variables that can be measured numerically.
The aim is to examine the effect of average age and education level on people's purchasing power in 10 Indonesian provinces through a statistical approach.
This research is causal associative, which aims to identify cause-and-effect relationships between variables.
The data used is secondary data sourced from the Central Statistics Agency (BPS) and Bank Indonesia for 2020-2023, in the form of cross-section data from 10 selected provinces.
Research Variables Based on the problem formulation, the research variables are grouped as follows:
- Dependent Variable : Purchasing Power .
easured by average expenditure per capita and household consumption inde.
- Independent Variable : Average Age of the Population .
n year.
Education Level .
easured by the percentage of the population with a high school education and abov.
Classical Assumption Testing Prior to regression analysis, a classical assumption test is conducted to ensure that the statistical model is free from bias.
The tests carried out include:
Normality Test (Kolmogorov-Smirnov/Shapiro-Wil.
to verify data distribution.
Multicollinearity Test (VIF < .
to ensure there is no high correlation between independent variables.
Heteroscedasticity Test (Glejser Tes.
tests the equality of residual variances.
Autocorrelation Test (Durbin-Watso.
for time-series data .
f Multiple Linear Regression Analysis The statistical model used is multiple linear regression to measure the effect of independent variables on purchasing power.
The model equation is formulated as follows:
THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S
PURCHASING POWER IN INDONESIA IN 2022
Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025
Y = CAXCA CCXCC A
Notes:
- Y = Community Purchasing Power - = Constant - CA = Regression coefficient for Average Age (XCA) - CC = Regression coefficient for Education Level (XCC) - A = Error term .
rror rat.
(Hutagalung, 2.
Data Source and Analysis Technique Average Age Data: Taken from BPS demographic projections .
Education Level Data: Using the percentage of the population with at least a senior high school education (Susenas 2.
Purchasing Power Data: Measured by average expenditure per capita (BPS) and household consumption index (Bank Indonesi.
Sample Provinces: Selected based on stratified random sampling to represent the Western.
Central, and Eastern regions of Indonesia .
or example: DKI Jakarta.
West Java.
East Java.
Bali.
North Sumatra.
South Sulawesi.
NTT.
East Kalimantan.
Papua, and DI Yogyakart.
Analysis Tools a Software: SPSS for statistical data processing.
a Hypothesis Test:
- T-test for the significance of the partial effect of each - F test for the significance of the model as a whole.
- Coefficient of Determination (RA) to see the contribution of independent variables to purchasing power.
Results and Discussion Descriptive Analysis Results According to data from Datanesia in 2022.
North Kalimantan is the province with the highest average purchasing power in Indonesia, with Rp3.
7 million per month.
West Papua follows with Rp3.
6 million and Papua with Rp2.
9 million.
In addition, provinces with high purchasing power are North Maluku.
East Kalimantan.
Central Kalimantan.
Gorontalo.
Bengkulu.
Bangka Belitung Islands, and Central Sulawesi.
This data shows that most of the provinces with the highest
THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S
PURCHASING POWER IN INDONESIA IN 2022
Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 purchasing power are in the eastern and central regions of Indonesia, perhaps due to the income levels or cost-of-living structures that exist Tabel 2.
Ten provinces with the highest level of purchasing power Names of Provinces Average (Rp Thousan.
Kalimantan Utara
3,718
Papua Barat
3,642
Papua
2,971
Maluku Utara
2,688
Kalimantan Timur
2,608
Kalimantan Tengah 2,573 Gorontalo
2,415
Bengkulu
2,328
Kep.
Bangka Belitung
2,280
Sulawasi Tengah 2,257 Source: Datanesia 10 Provinsi Paling Irit dan Paling Boros Table 3.
Summary of Descriptive Test Results Variables Min.
Max.
Mean Std.
Dev Age Education Purchasing Power Source: processed by the author with SPSS Statistics 25 The data presented illustrates the average purchasing power, age, and education of people in several provinces in Indonesia.
The province with the highest purchasing power is North Kalimantan with an average of IDR 3,718,000, followed by West Papua and Papua.
Meanwhile, the province with the lowest purchasing power is West Java with only IDR 777,000.
From the descriptive data, it is known that the average purchasing power of respondents is IDR 822,500, with a minimum value of IDR 777,000 and a maximum of IDR 868,000 and a standard deviation of 64.
This shows that there is a significant gap in purchasing power between provinces.
In addition, the average years of THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 education of the population is in the range of 7 to 10 years, with a mean value of 8.
57 years and a standard deviation of 0.
73 years.
In terms of age, respondents were in the age range of 22 to 33 years, with an average age of 27.
92 years and a standard deviation of 2.
This data reflects that the majority of respondents are of productive age and have gone through primary to secondary education, but their purchasing power is strongly influenced by the region of residence, which is most likely related to local economic conditions and the cost of living in each Classical Assumption Test Results Based on the results of the classic assumption test conducted by the author, the variables in this study have fulfilled the classic assumption test with detailed results.
This study has fulfilled the classic assumption test with the following detailed results.
Table 4.
Summary of Classical Assumption Test Results Probability Test Test Approach (Sig.
Results Normally Normal Shapiro-Wilk Multico VIF age = 1.
VIF (Variance Inflation VIF education = Facto.
arity (VIF < Hetero Visual test of residuals and There is no Sig.
= 0.
scedast regression Sig.
value is not from ANOVA Source: processed by the author with SPSS Statistics 25 Based on the results of the classical assumption test, all variables in this study fulfil the conditions required for linear regression analysis.
After conducting a normality test with the Shapiro-Wilk approach, the significance value of 0.
683, greater than 0.
05, indicates that the data is normally distributed.
In addition, the multicollinearity test showed that there was no indication of multicollinearity between the independent the VIF values for the age and education variables were 1.
each, well below the threshold of 10.
The researcher used a visual approach to test for heteroscedasticity by graphing the residuals and considering the significance value of the regression results.
There is no THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 heteroscedasticity problem in this model, according to the significance value of 0.
Therefore, the regression model shown in this study has fulfilled all the necessary classical assumption tests.
Regression Analysis Results To determine the effect of age level and education level on people's purchasing power, researchers conducted multiple linear regression analysis.
The results of the analysis can be seen in the following Linear Regression Analysis Results Table.
Table 5.
Regression Analysis Results Coefficient tVariable Prob.
(Sig.
(B)
Constant Age Education Level R-Squared Adj.
R-Squared Prob > F Source: processed by the author with SPSS Statistics 25 The R-Squared value of 0.
164 indicates that 16.
4% of the variation in purchasing power can be explained by the age and education variables.
Meanwhile, the Adjusted R-Squared of 0.
indicates that when adjusted for the number of variables, the model only explains about 6.
5% of the variation in purchasing power.
The Prob > F value of 0.
219 indicates that simultaneously, the two independent variables have not provided a significant influence on people's purchasing power .
ecause the Sig.
value > 0.
Based on the regression results, the following linear equation is obtained:
Purchasing Power = 246.
312 (Ag.
- 188.
287 (Education Leve.
From these results, it is known that the age variable has a positive influence on purchasing power, with a coefficient of 119.
This means that for every additional year of age, purchasing power is estimated to increase by Rp119,312, although this effect is not statistically significant (Sig.
= 0.
116 > 0.
Meanwhile, the education variable shows a negative influence on purchasing power with a coefficient of -188.
287, but also not statistically significant (Sig.
= 0.
> 0.
THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S
PURCHASING POWER IN INDONESIA IN 2022
Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 The R-Squared value of 0.
164 indicates that 16.
4% of the variation in purchasing power can be explained by the age and education variables.
Meanwhile, the Adjusted R-Squared of 0.
065 indicates that when adjusted for the number of variables, the model only explains about 5% of the variation in purchasing power.
The Prob > F value of 0.
indicates that simultaneously, the two independent variables have not provided a significant influence on people's purchasing power .
ecause the Sig.
value > 0.
Thus, although the direction of influence is visible in the model, neither partially nor simultaneously, there is no significant influence between age and education level on purchasing power in this study.
The Effect of Age on People's Purchasing Power The results of the linear regression analysis show that the age variable has a positive influence on people's purchasing power.
The regression coefficient of 119.
312 indicates that every one-year increase in age will increase purchasing power by IDR 119.
312, assuming other variables remain constant.
This indicates that the higher a person's age, the more likely they are to have greater purchasing power, although this effect is not statistically significant.
Theoretically, this can be explained by the fact that older age often correlates with economic stability, longer work experience and higher income (Hao, 2.
Older individuals tend to be wellestablished in their jobs and have more planned spending (Halim et al.
Therefore, even though the statistical results show a nonsignificant effect, the positive relationship between age and purchasing power is still logical in the economic context of society (Hill, 2.
However, the significance value of 0.
116 (>0.
indicates that statistically, the effect of age on purchasing power cannot be concluded strongly in this study.
This means that there is a possibility that age is not the only determinant of purchasing power, but it is necessary to consider other factors such as type of employment, economic status, and household conditions.
Therefore, although age contributes positively to purchasing power, its influence is still limited and requires further study (Stanciu & MihEilescu, 2.
The Effect of Education Level on Purchasing Power Meanwhile, the education level variable shows a negative relationship towards people's purchasing power, with a regression coefficient of -188.
This indicates that every one increase in THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S PURCHASING POWER IN INDONESIA IN 2022 Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 education level has the potential to reduce purchasing power by Rp188,287, assuming other variables remain constant.
Statistically, this relationship is also insignificant, indicated by the probability value (Sig.
500 which is far above the significance limit of 0.
This result seems inconsistent with the general assumption that higher education should increase one's income and purchasing power.
However, in the context of this study, it could be that individuals with higher education levels are not yet fully in the productive phase or are still in the career-building stage (Ayaviri-Nina et al.
, 2.
For example, recent graduates with higher education may not yet have a steady income, while individuals with secondary education may have been working longer and have a stable income.
Thus, this result suggests that a higher level of education is not necessarily a guarantee of higher purchasing power.
The negative effect shown in the model may reflect complex socioeconomic dynamics, where employment background, work experience and other factors influence the relationship between education and purchasing power (Wartoyo et al.
, 2.
Therefore, further studies are needed to understand the context and characteristics of the respondents more deeply before drawing general conclusions.
IV.
Conclusion Based on the research results of multiple linear regression analysis, it is known that education level and age have not shown a significant influence on people's purchasing power.
This is indicated by the F significance value of 0.
219, which shows that age and education have significance values of 0.
116, respectively, and 0.
500, respectively, above the 0.
05 threshold.
Therefore, this regression model cannot effectively explain the variation in people's purchasing power caused by age and education.
The direction of influence of both variables remains interesting, although statistically insignificant.
Age has a positive influence on purchasing power, meaning that the older a person gets, the more likely they are to have greater purchasing power.
In contrast, education level has a negative influence on purchasing power, meaning that the higher one's education is not always directly proportional to their ability to spend more money.
Employment status, dependents, or differences in consumption patterns based on socio-economic background are some examples of other factors that have not been studied.
THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S
PURCHASING POWER IN INDONESIA IN 2022
Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 Overall, this study shows that only two independent factors, age and education, can explain people's purchasing power.
The low RSquared value .
and adjusted R-Squared value .
reinforce the conclusion that the influence of age and education is still very small.
This result made me realise that in analysing people's purchasing power, many variables beyond age and education need to be considered.
These include employment conditions, cost of living, actual income, or even psychological and socio-cultural factors that are not visible in the statistical figures.
Bibliografi Ayaviri-Nina.
Quispe-Fernyndez.
Vanegas.
Ortega-Mejya, , & Cordero-Ahiman.
Importance of purchasing power and education in the food security of families in rural areasAicase study: Chambo, ecuador.
Sustainability, 14.
, 6068.
Drakopoulos.
Theories of consumption.
Halim.
Hubeis.
, & Astuty.
Factors Affecting PeopleAos Purchasing Power Implications for Unemployment Levels and Poverty Levels in West Java Province.
ICLSSEE 2022: Proceedings of the 2nd International Conference on Law.
Social Science.
Economics, and Education.
ICLSSEE 2022, 16 April 2022.
Semarang.
Indonesia.
Hao.
Predictive Modeling of Relationship Between ResidentsAo Consumption Age and Purchasing Power Based on PVAR.
Proceedings of the 5th International Conference on Big Data Analytics for Cyber-Physical System in Smart CityAiVolume 2: BDCPS 2023.
December 28Ae29.
Fuyang.
China, 235, 401.
Hill.
Purchasing Power Parity.
In Encyclopedia of Quality of Life and Well-Being Research .
5636Ae5.
Springer.
Hutagalung.
Analisis Regresi Data Panel Dengan Pendekatan Common Effect Model (CEM).
Fixed Effect Model (FEM) dan Random Effect Model (REM)(Studi Kasus: IPM Sumatera Utara Periode 2014Ae FARABI: Jurnal Matematika Dan Pendidikan Matematika, 5.
, 217Ae226.
Martini.
, & Spataro.
At the origins of the life cycle hypothesis of Franco Modigliani and Richard Brumberg: an attempt at analysis.
The European Journal of the History of Economic Thought, 31.
, 77Ae
THE EFFECT OF AVERAGE AGE AND LEVEL OF EDUCATION ON PEOPLE'S
PURCHASING POWER IN INDONESIA IN 2022
Zefanya Grace Enos Simbolon .
Pardomuan Robinson Sihombing .
Vol.
04 No.
01 Tahun 2025 Montgomery.
Peck.
, & Vining.
Introduction to linear regression analysis.
John Wiley & Sons.
Nwachukwu.
Human capital development: A driver for educational improvement in Nigeria.
British Journal of Education, 12.
, 30Ae39.
RUKUNDO.
THE EFFECT OF THE SHIFT IN WORKING-AGE
POPULATION ON GROSS DOMESTIC PRODUCT .
ULK.
Singh.
Raghuwanshi.
Yadav.
Hasan.
Sikarwar.
Mishra.
& Singhal.
The effects of religion on indian buying behavior: A conceptual framework and research agenda.
International Journal of Religion, 5.
, 14Ae22.
Stanciu.
, & MihEilescu.
Purchasing power of the low income population from Romania during the crisis.
Procedia Economics and Finance, 8, 466Ae473.
Wartoyo.
Lutfiyanti.
, & Ainun.
Analysis of Monetary Strategies and Policies to Manage the Inflation and Public Purchasing Power in Indonesia.
Jurnal Ekonomi Syariah.
Akuntansi Dan Perbankan (JESKaP.
, 8.
, 1Ae23.