International Journal of Economics and Financial Issues Policies to Eliminate Poverty Rate in Indonesia (original) (raw)
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Policies to Eliminate Poverty Rate in Indonesia
This study aims to analyze the factors that influence the poverty rate in Indonesia in the period of 1981-2013. This research uses Error Correction Model (ECM) to estimate the empirical poverty model. The findings may be explained as follows: Economic growth does not influence the poverty reduction; meanwhile inflation has a significant positive effect on the poverty level. Foreign direct investment (FDI) as an indicator of economy openness has a negative impact on the poverty. In addition, Gini ratio as an income equality measurement has no significant influence on the poverty level. These findings show that the poverty level depends on macroeconomic instability especially price level. Higher inflation rate leads to higher rate of poverty in the country. Furthermore, the central government should keep the monetary sector using tight monetary policy to eliminate the poverty level.
Poverty in Indonesia: An Application of Error Correction Model (ECM) Approach
International Journal of Advances in Social Sciences and Humanities
Poverty is one of the biggest concerns of the Indonesian government currently towards achieving social welfare. Indonesia's poverty tends to experience a downward trend but has not yet reached its target. This study analyses the long-term and short-term effects of unemployment, household per capita expenditure and ICT on poverty. This study uses panel data with the ECM approach in 34 provinces in Indonesia from 2015 to 2021. The result indicated that unemployment does not affect poverty in the long and short term. Meanwhile, per capita, household spending, and ICT negatively affect poverty in Indonesia. The government's efforts to overcome unemployment have been reasonable because unemployment does not affect poverty. The government can control household per capita expenditure through socialization or household education to prioritise basic needs first to achieve prosperity. Increasing the reach of ICT development in Eastern Indonesia and areas where ICT facilities are inade...
DETERMINANTS OF POVERTY LEVEL IN INDONESIA
Jurnal Ekonomi , 2022
This study observes that there is a slowdown in poverty reduction in Indonesia, so that in order to realize the achievement of no poverty in 2030 it is necessary to carry out further research related to the determinants of poverty in Indonesia. Researchers used panel data from 34 provinces in Indonesia for the 2015-2020 period. The model used is panel data regression using panel data regression analysis. The results of the study are that government spending directly has a significant effect on poverty and indirectly through unemployment has a significant effect but government spending does not have a significant effect on poverty through economic growth, investment has a significant effect on poverty but indirectly boththrough growth and unemployment have no significant effect.
Poverty Analysis and Factors Which Affects Indonesia
Proceedings of the 1st International Seminar on Teacher Training and Education, ISTED 2021, 17-18 July 2021, Purwokerto, Indonesia, 2021
Poverty is one of the problems that humans always face. Poverty is as old as humanity itself, and the implications of the problem can involve all aspects of human life. This study aims to determine and analyze the effect of people's business credit (KUR), Provincial Minimum Wages (UMP), and PMDN investment on Poverty in Indonesia. The data used in this study are secondary in the 2016-2020 period. The method used is multiple linear regression with a panel data approach with Eviews. The regression output with the fixed-effect model shows that the KUR, UMP, and PMDN variables hurt the poverty level in Indonesia. The UMP variable significantly affects the poverty level, while the KUR and PMDN variables have no significant effect on the poverty level. This finding implies that the government can provide business capital, increase wages and provide vast opportunities for investors, which will reduce Poverty in Indonesia
The Effect Of Economic Growth And Income Inequality On Poverty In Indonesia
The purpose of national development is to realize a just, competitive, progressive, and prosperous Indonesian society of the Republic of Indonesia. This study aims to determine the economic growth, inequality of development and its effect on poverty reduction in Indonesia by using 33 provincial panel data from 2009 until 2015. It analyzed by using descriptive and multiple linear regression analysis.The research found that the poverty rate in Indonesia has decreased in line with the improvement in economic conditions which is marked by an average economic growth above 5 percent per year. The result of regression analysis found that there is thepositive and significant effect of Gini index variable to the increase of poverty. It means that any increase in income inequality (Gini index) occurring in Indonesia, could lead to the rise in debt in Indonesia. The human development index variables affect negative and real to poverty. Meanwhile, the growth of Gross Regional Domestic Product (PDRB) has a negative but not real impact on poverty reduction. It shows that every increase of Human Development Index and GDP growth can reduce thepoverty rate in Indonesia. Jel. Classification: E64, O11
MONETARY EFFECT ON POVERTY RATE IN INDONESIA
IJARW, 2022
The issue of poverty is still one that many emerging nations, including Indonesia, are keen to discuss. Policies for reducing poverty can be implemented on a financial level. This study examines how foreign investment, debt, and the money supply affect poverty directly and indirectly by generating job opportunities. According to the study, only the foreign debt variable negatively impacts job chances. The money supply does not significantly impact when the three factors are focused on poverty. Therefore, poverty alleviation is more successful if the three factors focus on employment creation.
https://www.ijrrjournal.com/IJRR\_Vol.6\_Issue.1\_Jan2019/Abstract\_IJRR0016.html, 2019
This research aims to analyze the influence of population growth rate, economic growth, human development index, income distribution, and unemployment rate toward poverty in all provinces in Indonesia. This research used multiple linear regression model which processed with SPSS. All variables, such as population growth rate, economic growth, human development index, income distribution, and unemployment rate are in form of secondary data, which further proxied with Gini Ratio and unemployment rate in all provinces in Indonesia within 2016. The included data are in form of cross section data. The results show that population growth rate (0,015), economic growth (0,00), human development index (0,035), income distribution (0,01), and unemployment rate (0,00) are simultaneously influencing the poverty in all provinces in Indonesia, significantly
Determinant of Poverty in Indonesia
Economics Development Analysis Journal
This research aims at knowing the relationship between the labor force participation level, the average of expenditure per capita, the literacy level, and the capital investment and the poverty level in Indonesia at 2014. The secondary data in this research were obtained from the Central Bureau of Statistics (BPS) and the National Population and Family Planning Bureau (BKKBN) in 32 provinces in Indonesia (cross section). The method of research used is Ordinary Least Square Method with level of confidence of 95%. The research result shows that the average of expenditure per capita and the capital lending have a significant influence on the poverty level in 2014, while the labor force participation level and the literacy level have no significant influence on the poverty.
The Impact of Macroeconomic Effect and Fiscal Policy on Poverty in Indonesia
Jurnal Ekonomi dan Studi Pembangunan
Poverty is a problem that must be overcome immediately by a developing country. Therefore, various efforts were made to find factors that significantly affect poverty in order to design an alleviation strategy. This study aims to determine the impact of macroeconomic effect and fiscal policy on poverty poverty in all the Indonesian provinces from 2018 to 2020. The macroeconomic effect proxied by unemployment, Human Development Index (HDI), investment, and economic growth. Besides that, the fiscal policy proxied by social assistance. The data analysis used in this study is panel data. The time-series data used are from 2018 to 2020, and the cross-section data used is from 34 provinces in Indonesia. The model selected in this study is the Fixed Effect Model (FEM). This study found that unemployment had a significant positive effect, and HDI had a significant negative impact on poverty in Indonesia. In contrast, social assistance did not have a significant impact. Simultaneously, unemp...