Issue

Vol. 13 No. 1 (2026): June

Date Log

Submitted
17 December 2025
Accepted
28 June 2026
Published
28 June 2026

Copyright (c) 2026 Teti Rohayati, Subagio Subagio, Lely Arrianie (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How Regional Human Resource Capabilities and Compensation Governance Shape Labor Productivity across Indonesian Provinces

https://doi.org/10.24252/minds.v13i1.63710
Teti Rohayati
Binus University, Indonesia
Subagio Subagio
Politeknik Keuangan Negara STAN, Indonesia
Lely Arrianie
LSPR Communication and Business Institute, Indonesia

Corresponding Author(s) : Teti Rohayati

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 13 No. 1 (2026): June

Abstract

Regional disparities in labor productivity across Indonesia reflect differences in how provincial systems build, mobilize, reward, and retain workforce capacity. This study examines labor productivity as an outcome of regional human resource architecture shaped by two managerial levers: capability formation and compensation design. Using publicly available 2024 data from Badan Pusat Statistik and the Ministry of Manpower for 38 Indonesian provinces, the study uses the Human Development Index as a proxy for workforce capability and the Provincial Minimum Wage as a proxy for compensation governance. Two ordinary least squares models, linear and log-linear, estimate their association with labor productivity. The indicators jointly explain 55.2% of cross-provincial variation, with both effects significant at p < 0.001. Robustness checks confirm that the findings are not driven by extreme cases. The study contributes a managerial typology of provincial productivity systems: dual deficit, untapped potential, compensation without depth, and integrated systems.

Keywords

Regional Human Resource Management Labor Productivity Human Development Index Compensation Governance Indonesia
Rohayati, T., Subagio, S., & Arrianie, L. (2026). How Regional Human Resource Capabilities and Compensation Governance Shape Labor Productivity across Indonesian Provinces. Jurnal Minds: Manajemen Ide Dan Inspirasi, 13(1), 361–374. https://doi.org/10.24252/minds.v13i1.63710
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Author Biography

Lely Arrianie, LSPR Communication and Business Institute

Communication Department

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