PENGENTASAN KEMISKINAN DI INDONESIA: IMPIAN ATAU KENYATAAN?

Abstract

The Indonesian government has set itself the ambitious goal of becoming a Sovereign, Advanced and Sustainable Archipelago by 2045. This will be achieved, among other things, by reducing poverty to zero per cent and inequality. This is in line with the targets of the Sustainable Development Goals (SDGs), specifically Goal 1, which calls for the eradication of poverty in all forms by 2030, and Goal 3, which ensures healthy lives and improves well-being for all people at all ages. As indicated by the World Development Indicators (WDI), approximately one-third of the global incidence of extreme poverty is concentrated in 22 out of 218 countries, representing 7% of the global population that has not been able to achieve a level of income that would be considered above the poverty line. In Indonesia, the prevalence of poverty varies considerably across different regions, with many areas still below the desired target level. The present study focuses on the issue of poverty alleviation in Indonesia. The objective of this study is to investigate the factors that influence poverty alleviation. The results demonstrate that the education budget has a significant positive impact on P0, while its influence on P1 and P2 is inconclusive. The health budget displays ambiguity with regard to P0, but significantly reduces P1 and P2. The social protection budget has a significant negative impact on P0, but is insufficient to mitigate the observed increase in P1 and P2. The village fund budget has a significant negative impact on P0, but its effect on P1 and P2 is ambiguous. The distance of cities and districts to the provincial government centre was found to significantly reduce P0, yet contribute to the increase of P1 and P2. The data on the level of provinces, cities and districts in Indonesia from 2016 to 2022 were sourced from the Indonesian Ministry of Finance and BPS, while the GPS coordinate data were obtained from the Geocode for Sheets™ geocoding tool.