Abstract
This study aims to analyze rural and urban poverty on Sumatra Island, Indonesia, and its determinants. The variables tested in the model are HDI (Human Development Index), GRDP (Gross Regional Domestic Product), and per capita expenditure. The data used is panel data for the provinces on Sumatra Island in the period 2011 - 2019. The analysis tool uses a panel data regression model. The study results found that during the 2011 - 2019 period, the rural poverty rate on Sumatra Island was 11.68 percent, relatively higher than in urban areas, 9.22 percent. The poverty gap index and poverty severity index in rural areas are also relatively higher than in urban areas. The research results also found that the poverty level in rural areas is significantly affected by HDI, while the GRDP and per capita expenditure does not significantly affect.
Highlights
Sumatra Island is one of the large islands with the largest number of provinces in Indonesia
This study aims to analyze poverty models in rural and urban areas in Sumatra Island
Poverty on Sumatra Island, both in urban and rural areas, is significantly affected by HDI. These results are in line with poverty models from various previous research results such as Zuhdiyati & Kaluge (2017) in their research on 33 provinces in Indonesia, Andykha et al (2018) in Central Java Province, and Susanti (2013) in West Java Provincie
Summary
Sumatra Island is one of the large islands with the largest number of provinces in Indonesia. There are 10 provinces on Sumatra Island, namely the provinces of Aceh, North Sumatra, West Sumatra, Riau, Jambi, Bengkulu, South Sumatra, Bangka Belitung, Riau Islands and Lampung. With the largest area and number of provinces, Sumatra Island has a significant role in improving the Indonesian economy. Various development efforts have been carried out intensively in the provinces on the island of Sumatra. The facts show that the development carried out on Sumatra Island has not improved the welfare of the people optimally. In 2019, the average poverty rate for the provinces on Sumatra Island reached 9.81 percent, above the national average of 9.22 percent
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