The Socioeconomic Determinants of Poverty Dynamics in Indonesia

Abstract

The poverty rate is one of the indicators of national development. The poverty rate of Indonesia has not decreased in the period 2015-2020. It indicates that the existing policies that aim to alleviate poverty are not effective. The purpose of this study is to examine the socio-economic determinants that affect poverty levels and to formulate strategies to alleviate them. The study uses secondary data which is panel data and analyzes it using regression. The data is obtained from the Central Bureau Statistic. This research shows there are socioeconomic determinants that significantly affect the poverty level, i.e. the mean years of schooling (average number of completed years of education of a country’s population aged more than 15 years old), the percentage of smokers, the formal employees, life expectancy at birth, and Gini ratio. The strategy formulation for alleviating poverty in Indonesia, i.e. enhancement of infrastructure development and sustainable development that takes into account economic, social, cultural and environmental aspects to create a better civilization ecosystem.