Simultaneous model on sustainable development indicators of Java Island 2017-2020

Simultaneous model is a model that states the occurrence of a two-way relationship between the independent and dependent variables. There are two approaches to estimate the parameter model simultaneously, namely the single equation method and the simultaneous method. It is known that economy, social, and environment are among sustainable development components which have simultaneous relationship. When those variables are observed as regional data, spatial interaction of those variables between regions will be observed. The objective of this study is to estimate a spatial simultaneous equation model for indicators of Java's sustainable development, based on data at provincial level (2017-2020). The estimation procedure is applied on the simultaneous equations, namely gross regional domestic product, human development index, and proportion of forest cover, each representing an economic equation, a social equation, and an environmental equation. The Two Stage Least Squares method is used. All three models refuse hypothesis zero meaning that all three models match used for state simultaneity between product domestic gross, index development humans, and cover forest. First model has coefficient determination by 50.67%, the second model have coefficient determination by 83.72%, and the third model have coefficient determination by 99.43%.