Abstract
This study aimed to assess whether there is influence between HDI, GRDP, Unemployment, Investment and Dummy (mainstay and not mainstay areas) on Poverty in Central Java. Based on data from BPS, poverty in Central Java Province in 2013-2018 are in number 2 after DI Yogyakarta in Java. This research use panel data with a Fixed Effect Model (FEM) approach. Sources of data obtained from the Central Statistics Agency and the Directorate General of Indonesian Financial Balance. The results showed that the variable HDI, GRDP and investment had a negative and significant effect on poverty in Central Java Province. While the Unemployment and Dummy variables (mainstay and non-mainstay areas) have a negative and not significant effect on poverty in Central Java Province. Simultaneously, shows that the overall independent variable can show its effect on poverty. The coefficient of determination R2 of 0.9899 which means 98.99 percent of poverty can be explained by the independent variable. While the remaining 1.01 percent is explained by variables outside the model.
Highlights
The Government of Indonesia realizes that national development is one of the efforts to become the goal of a just and prosperous society
The results showed that the variable Human Development Index (HDI), Gross Regional Domestic Product (GRDP) and investment had a negative and significant effect on poverty in Central Java Province
Regional development is carried out in an integrated and sustainable manner according to the priorities and needs of each region with roots and national development targets that have been established through long-term and short-term development
Summary
The Government of Indonesia realizes that national development is one of the efforts to become the goal of a just and prosperous society. In line with this goal, various development activities have been directed towards regional development, especially regions that have relatively increased poverty from year to year. Regional development is carried out in an integrated and sustainable manner according to the priorities and needs of each region with roots and national development targets that have been established through long-term and short-term development. One of the main indicators of the success of national development is the rate of decline in the number of poor people. Poverty is one of the problems that always arises in people's lives. The implications of the problem of poverty can involve all aspects of human life, their presence is often not realized by the human being concerned (Ridzky, 2018)
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