Poverty in the Indonesia-Malaysia border province (case study in West Kalimantan Province)

Pramushinta Arum Pynanjung,Rusli Burhansyah,Edy Agustinus,Junaidi Junaidi,Shenny Oktoriana

doi:10.22437/ppd.v9i5.12760

Abstract

This study aims to analyze the factors determining poverty in the Indonesia-Malaysia border province of West Kalimantan. Data were obtained from Statistics Indonesia (BPS) of West Kalimantan Province. From 2010 to 2019, panel data of regencies/cities in West Kalimantan were analyzed quantitatively. The results showed that the Random Equation Model (REM) using the GLS method was more appropriate for examining the impact of poverty in West Kalimantan. The study result found that Gross Regional Domestic Product, unemployment rate, and population density significantly affect poverty.

Highlights

Poverty is an economic circumstance in which one cannot fulfill their basic needs for food and non-food items
The problem of poverty must still be controlled to reduce the social inequality of the people in the Indonesia-Malaysia border areas
Several variables can serve as benchmarks in controlling West Kalimantan's poverty rate, Human Development Index (HDI), economic growth rate, Gross Regional Domestic Product (GRDP), unemployment rate, and population density

Summary

Introduction

Poverty is an economic circumstance in which one cannot fulfill their basic needs for food and non-food items. The poverty line is determined by the amount of money (in rupiah) spent per month on food needs (2100 kcal/capita/day) and non-food needs (housing, goods, and services, clothing, durable goods such as brooms and scissors, taxes and insurance, as well as party and ceremonial expenditures) (Badan Pusat Statistik Provinsi Kalimantan Barat, 2020). According to World Data Lab (2018), Indonesia ranked second-highest, with a 5.1% extreme poverty rate. In contrast to Malaysia, which came in second last with a 0% extreme poverty rate. It may undoubtedly be one of the triggers of socioeconomic inequality, notably among those residing in areas bordering Malaysia, such as provinces on the Borneo island

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