Abstract
One of the Central Java Provincial Government programs is to reduce the number of people living in poverty. The Central Java Provincial Government target in 2020 was to lower poverty rate to below ten percent. Therefore, it is necessary to determine factors affecting the poverty rate in Central Java. This study aimed to analyze the effect of the Human Development Index, total population, Gross Regional Domestic Product (GDRP), and the impact of the Covid-19 pandemic on the poverty rate in regencies/municipalities in Central Java. The study on the impact of the Covid-19 pandemic on the poverty rate in Central Java Province has never been carried out. This study was different from the previous studies. This study used panel data regression by using 2018-2020 data from Statistics Indonesia (BPS). In this study, the result of the best model selection was the random effect model. The result of this study indicated that Human Development Index (HDI) had a negative and significant effect, total population had a positive and insignificant, GRDP had a negative and significant effect, and the impact of Covid-19 pandemic had a positive and significant effect on the poverty rate. Keywords: Impact of Covid-19, Human Development Index, Population, Poverty Rate, Gross Regional Domestic Product.
Highlights
Poverty is a global issue facing various countries worldwide
The increase in poverty rate will undoubtedly be a serious concern for the government, especially the Central Java Provincial Government because one of the government’s programs is to reduce the poverty rate each year
Based on the results and discussion, this study comes to the following conclusions: (1) In 2020, the percentage of people living in poverty in Central Java increased by 0.61 percent compared to 2019
Summary
Poverty is a global issue facing various countries worldwide. They pay attention to the issue (Todaro et al, 2000). According to (Arsyad, 1999), poverty can be broadly classified into two aspects, namely primary aspects and secondary aspects. The primary aspects of poor are assets, socio-political organizations, knowledge, and skills. The secondary aspects of poor are social network, financial resources, and information. Poverty can be interpreted as an absolute or relative condition in an area where people cannot meet their basic needs according to the prevailing values or norms (Nugroho et al, 2012). Based on data from the Statistics Indonesia (BPS), Indonesia’s population in 2020 is 269.60 million people and ranks as the fourth most populous nation in the world
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