ROLE OF HUMAN CAPITAL AND SOCIAL CULTURE IN POVERTY REDUCTION IN ACEH PROVINCE, INDONESIA

Abstract

This study aims to examine the human capital factor in overcoming poverty in the people of Aceh Province and the role of socio-culture in overcoming poverty in Aceh Province. The poverty rate in Aceh province continues to increase while special autonomy and village funds are increasingly available; this is in contrast to the SDGs program. Quantitative research using panel data analysis with the FEM method as the best analysis tool. The Central Statistics Agency released the data used in the Aceh Province Village Potential in 2011, 2014, and 2018 with the number of observations in this study as many as 19,355 of 6505 villages in Aceh Province. Village-level poverty in Aceh Province can be assessed through human capital and socio-culture dimensions. The findings of the dimensions of human capital show that three variables have a significant effect: the number of private primary schools, private senior high schools, and distance to vocational schools. In comparison, the socio-cultural dimensions of variables that significantly affect cooperation are the availability of cinemas/pay-TV, karaoke/entertainment venues, and public spaces or fields. The quality of community welfare development must receive support from the government in providing facilities that support human capital activities and support from the surrounding community in creating a life based on solidarity or cooperation. Socio-cultural factors are an alternative strategy to poverty alleviation in the regions through a village-level approach.