Women's empowerment and economic growth in Indonesia

Research and corporate initiatives in Indonesia highlight the complex relationship between women's empowerment and economic development. A study conducted in North Sumatra covering the period from 2019 to 2024 analyzed various gender metrics against regional economic growth. The findings indicated that while female life expectancy has a positive and significant impact on growth, the Gender Empowerment Index showed a negative and significant correlation, and the Gender Development Index and average years of schooling for women did not show significant influence.

In a separate practical application, PT Permodalan Nasional Madani (PNM) is utilizing microfinance to support female entrepreneurs. In Yogyakarta, the empowerment of micro-business owners like bamboo crafter Sulastri demonstrates how increasing women's economic capacity can improve family stability and support children's education. To further this impact, PNM has provided assistance for school facility repairs to support the educational environments of children within these micro-entrepreneur families.