Poverty Reduction In Indonesia Research Articles

The Role of Sharia Economy in Poverty Reduction in Indonesia

This research aims to analyze the role of Sharia economics in alleviating poverty in Indonesia. The method used in this research is a literature study, which is a series of activities relating to methods of collecting library data, reading and taking notes, as well as processing reading material into research data. Some of the literature that researchers use as data sources are books, journal articles, and news related to the role of Sharia economics in reducing poverty rates in Indonesia. One of the goals of religion is to encourage people from being left behind economically. Poverty is a serious problem that must be sought immediately for a solution because it can have very dangerous impacts, including disturbing one’s faith or it could even disappear and that person becomes a disbeliever. The potential for ziswaf in Indonesia is extraordinary. If it can be managed professionally, it will have an impact on the welfare of society. How to overcome poverty can be done with various steps and strategies. The thing that must be done from the start to overcome the poverty that grips our society is to create an economic order that allows for a fair distribution system to be born, encouraging the birth of concern from people who have (aghniya’) toward the needy, poor, dhu’afa’ and mustard ’affine. One form of concern for Aghniya’ is his willingness to pay zakat and issue sadaqah. Keywords: ZISWAF, poverty alleviation, economic Sharia

Assessing the Effectiveness of Social Assistance Programs to Alleviating Poverty in Indonesia

Poverty in Indonesia is a fundamental problem that needs special attention. The government is trying to alleviate poverty by introducting various programs to people who are below the poverty line. One of these programs is the Social Assistance Program. This research aims to determine the extent of the impact of social assistance programs on poverty reduction in Indonesia. The method used is a quantitative method with analytical tools, namely R, to carry out regression analysis on the data. The data used include (1) data on poverty levels in Indonesia, (2) demographic data on the Indonesian population, (3) data on social assistance programs organized by the government or other institutions, (4) data on household or individual income, and (5) data related to the socio-economic conditions of social assistance recipients. The research results show that social assistance programs influence poverty reduction. Influence can be increased by (1) providing clear regulations and rules in implementing aid, (2) cross-checking target recipients of aid, and (3) carrying out regular monitoring and evaluation of aid program implementation.
 Keywords: policy evaluation, social assistance program, poverty, Indonesia

The Effect of Islamic Financial Inclusion, Urbanization, Inflation, and GDP on Poverty in Indonesia

This research aims to assess the influence of Islamic financial inclusion, urbanization, inflation, and GDP on the alleviation of poverty in Indonesia. The methodology employed is quantitative, utilizing secondary data in a panel data format spanning the period from 2018 to 2022. A total of 165 samples were gathered, and the data underwent processing through Eviews 10. The findings indicate that individually, the Sharia Financial Inclusion Index (IIKS), inflation, and GDP do not exhibit a significant impact on poverty reduction in Indonesia. Conversely, urbanization has a noteworthy and negative effect on poverty reduction in Indonesia. When considered collectively, the IIKS, urbanization, inflation, and GDP variables jointly exert a substantial influence on poverty reduction in Indonesia, reflected in an Adjusted R-squared value of 98%, while the remaining 2% is attributed to other unexplored factors in this study. For future research endeavors, it is advisable to introduce additional variables for a more comprehensive and profound exploration of this subject.

Leveraging Islamic Economic To Alleviate Poverty In Indonesia : A Promising Pathway

This empirical study explores the relationship between Islamic banking development, social justice promotion, and poverty reduction in Indonesia, using annual time series data from 1991 to 2021.. Methodology/approach The analysis encompasses unit root tests, Johansen cointegration tests, and Vector Error Correction Models (VECM) to assess short and long-term causality among the variables. The results provide robust evidence that expanding Islamic financial institutions and increasing spending on Islamic philanthropy significantly contribute to reducing national poverty levels over both the short and long-run. Islamic finance, characterized by equity-based principles, facilitates financial access for marginalized groups, while instruments of Islamic philanthropy such as zakat and sadaqah directly assist the disadvantaged, enabling pathways out of poverty. Findings – The findings underscore the potential of Islamic economics to foster equitable, inclusive, and sustainable growth, validating the need for policy support to harness its impact

Reducing the provincial poverty rate in Indonesia: The impact of local government expenditure

This study seeks to examine the effect of local government expenditure on the improvement of provincial welfare in Indonesia. It is necessary to increase public capital such as basic infrastructure and public facilities, as well as to improve public services such as health, education, and social protection. Based on previous studies, research on government spending on poverty has a significant effect on poverty reduction, but some other studies are not the case, namely government spending has not been significant in reducing poverty and improving welfare. The data used in government expenditure is expenditure based on functions, particularly health, education, and social protection functions in the province, both district/city and provincial government expenditures obtained from the Directorate General of Financial Balance (DJPK), while the provincial poverty rate serves as a proxy for regional welfare. Over the period 2015-2021, the Fixed Effect model using the Generalized Least Square Estimation (GLSE) approach is used to estimate outcomes for 34 provinces in Indonesia. The results indicated that government expenditure on the health sector and education sector had a negative significant influence on reducing the poverty rate, whereas government expenditure on social protection did not. The control factors, such as economic growth, had a negative effect on poverty reduction in Indonesia, whereas the unemployment rate and informal labor in the agricultural sector had positive and significant effects. Government policies, especially government spending, have contributed well to reducing poverty, but the government should pay attention to the integration of spending programs with other programs.

Does Financial Development Alleviate Poverty? Empirical Evidence from Indonesia

This study examines the contribution of financial development to poverty reduction in Indonesia using the autoregressive distributed lag (ARDL) bound testing approach to the cointegration framework. It also employs annual data of several financial development measures such as domestic credit, broad money, and financial development indexes from 1986 to 2018. Our findings suggest that financial development and poverty reduction have a cointegration relationship, regardless of the financial development indicators used. Furthermore, we find that domestic credit, broad money, financial institution depth, financial market depth, financial market access, and financial market efficiency reduced poverty. It suggests that financial development reduced poverty through its indirect channel, i.e., the economic growth effect.

Zakat as an instrument of poverty reduction in Indonesia

PurposeThis study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.Design/methodology/approachThis study used a qualitative method based on library research sourced from books, financial reports and another previous research.FindingsThe results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.Research limitations/implicationsThis study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.Originality/valueGiven the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

Reliable Electricity Access, Micro and Small Enterprises, and Poverty Reduction in Indonesia

While subsidising electricity tariffs, the Indonesian government has launched a massive electrification campaign to improve the quality of life of Indonesians. However, whether these efforts have increased access to energy for all and whether this access reduces poverty is unclear. We empirically test the causal effects of electricity access on poverty reduction. We also investigate the potential role of micro and small enterprises (MSEs) as the transmission channel for poverty reduction. To isolate any endogeneity, we use the instrumental variable approach. We exploit the village’s proximity to the nearest power plant in 1985 as the exogenous variation of the historical least-cost distance by the state-owned electricity company, PLN, to instrument the endogenous nature of current-time electricity access. Our results show that expanding reliable electricity services contributes significantly to poverty reduction. Nevertheless, we find no evidence that the development of MSEs has an influential mediating role in the poverty reduction effects.

Do Financial Deepening, Government Spending, and Unemployment Benefit Poverty Reduction in Indonesia?

Poverty is classic problem faced in anycountry, various policies are carried out to reduce poverty to prosper the community. This study aims to analyze the effect of financial deepening, government spending, and unemployment on poverty in Indonesia. Observations were made in 33 provinces in Indonesia during the period 2012-2020. The model used is a panel data regression with fixed effect model. The results of this study indicate the financial deepening has a negative and significant effect on poverty, government spending has a negative and significant effect on poverty, and unemployment has a positive and significant effect on poverty. The implication is necessary to increase the role of the financial sector in every province in Indonesia, especially areas that are still low in financial deepening, optimize and increase government spending so that it can create new jobs and reduce the unemployment rate and poverty.

Poverty reduction in Indonesia through utilization of social security fund application

The purpose of this study is to examine poverty reduction through the utilization of social security fund applications. The social security fund application is named SIKS-NG. This is an application that aims to collect data on social security funds. In distributing social security funds (bansos), it is necessary to have data on the recipient of the social security fund (bansos). The data must be accurate so that the social security fund (bansos) will be on target. This study uses a descriptive method with a qualitative approach. The study results show that SIKS-NG is a solution for integrated, effective, and efficient management of poverty data. It contributes to the reduction of poverty. This follows the Sustainable Development Goals (SDGs), ending poverty everywhere and in various forms. SIKS-NG implements appropriate social protection systems and measures for all levels of society in Indonesia.

The Effectiveness of the Implementation of the Hope Family Program in Poverty Reduction in Indonesia

The objectives to be achieved in this study are to determine the effectiveness of the Family Hope Program (PKH) in alleviating poverty and to understand the inhibiting and supporting factors for the implementation of the Family Hope Program (PKH) in Indonesia. The research method used is observation, namely making observations on the object to be studied, while interviews are conducted on informants to obtain data or information related to the problem under study, then documentation is needed to find documents that support the policy of the Family Hope Program (PKH). The results show that the effectiveness of the Family Hope Program (PKH) in overcoming poverty has been running in accordance with the procedures and provisions of the government, but in its implementation there are still some indicators that are not satisfactory to the community regarding the data on recipients of assistance that do not match the data in the field. The inhibiting factor is that the list of beneficiaries from the integrated data agency does not meet the requirements to receive assistance, because it does not include the criteria for poor or underprivileged people. While the supporting factor is the Family Hope Program (PKH) which is very supportive of improving the welfare of families classified as underprivileged or poor, especially in improving the education and health of poor families, so this program needs to be continued and improved in the future.

Pengaruh Pembangunan Desa terhadap Penanggulangan Kemiskinan di Indonesia

Poverty harms development, so we must address it immediately. The poor in Indonesia are more distributed in rural areas than urban areas, so they must pursue rural development to alleviate poverty. This study aims to analyze the impact of rural development on poverty alleviation in Indonesia. In this study, the Village Development Index (IPD) consists of five dimensions, namely essential services, infrastructure conditions, accessibility, publik services, and governance. The research method uses regression analysis with unit analysis for 434 provinces/cities in Indonesia. The results show that two dimensions, i.e. essential services and publik services have a negatif and significant impact on poverty in Indonesia. Other variables that have a significant impact on poverty reduction in Indonesia are economic growth and the Human Development Index.

The Influence of Micro and Small Enterprises (MSEs) on Poverty Reduction in Indonesia 2015-2019

One approach in poverty reduction is through microfinance, as a flexible financing. The small people's economy which is synonymous with Micro and Small Enterprises (MSEs) is a big influence on economic growth in Indonesia. MSESs contribute greatly to employment in Indonesia by 97% of the total workforce and the largest contributor to GDP at 61.97% or equivalent to8,573.89 trillion rupiah.This study uses secondary data from 34 provinces using the following methods: 2 PLS regression which is a linear regression technique between the predictor variable X which is multivariate and the response variable Y to see the effect of MSEs and GDP on poverty and the effect of Poverty and MSEs on GDP per capita in Indonesia. . The end of this study in order to see the effect on the existence of GDP in Indonesia which is influenced by the number of MSESs on the current level of poverty, using the Granger method to look at 2 directions from the study

Islamic Philanthropy and Poverty Reduction in Indonesia: The Role of Integrated Islamic Social and Commercial Finance Institutions

The recent studies about the role of Islamic philanthropy in addressing socio-economic problems have been growing and confirming its significant role in overcoming the problem. This is in line with the existence of regulations that support the effectiveness of its role in poverty reduction in Indonesia, such as Law No. 23 of 2011 on Zakat Management and Law No. 41 of 2004 on Waqf. This study has two objectives. First, to analyze the impact of Islamic philanthropy on poverty reduction as the socio-economic problems in Indonesia in the short and long run. Second, to analyze the effectiveness of integrated Islamic commercial and social-economic or finance to address the poverty compared to unintegrated one. This study used Auto-Regressive Distributed Lag (ARDL) approach to analyze annual data for the period of 2002-2019 while investigating the long and short-run relationships among variables. It found that Islamic philanthropy reduces poverty both in the short and long run, particularly in the integration of Islamic social and commercial finance in a single model. The government should therefore include Islamic philanthropy or other Islamic social finances as a fundamental strategy for building financial stability and sustainable development. (Menjamurnya studi-studi terbaru terkait peran filantropi Islam dalam mengatasi masalah sosial-ekonomi telah mengkonfirmasi peran pentingnya dalam mengatasi masalah ini. Hal ini sejalan dengan adanya regulasi yang mendukung efektivitas perannya dalam pengentasan kemiskinan di Indonesia, seperti Undang-Undang Nomor 23 Tahun 2011 tentang Pengelolaan Zakat dan Undang-Undang Nomor 41 Tahun 2004 tentang Wakaf. Penelitian ini memiliki dua tujuan. Pertama, untuk menganalisis dampak filantropi Islam terhadap penurunan tingkat kemiskinan sebagai sebuah permasalahan sosial-ekonomi di Indonesia, baik dalam jangka pendek maupun jangka panjang. Kedua, untuk menganalisis efektifitas integrasi atau antara filantropi dan komersial dalam kerangka ekonomi Islam dalam mengatasi permasalahan kemiskinan. Penelitian ini menggunakan pendekatan Auto-Regressive Distributed Lag (ARDL) untuk menginvestigasi hubungan jangka pendek dan jangka panjang antara filantropi Islam dan tingkat kemiskinan selama periode tahun 2002-2019. Penelitian ini menemukan bahwa filantropi Islam dapat menurunkan tingkat kemiskinan baik dalam jangka pendek maupun jangka panjang. Penelitian ini juga menemukan bahwa ketika filantropi dan komersial dalam kerangka ekonomi Islam diintegrasikan, tingkat kemiskinan dapat diturunkan baik dalam jangka pendek maupun jangka panjang. Pemerintah seyogiyanya menempatkan filantropi Islam sebagai kebijakan dan strategi fundamental dalam rangka mewujudkan stabilitas keuangan dan pembangunan berkelanjutan.)

DINAMIKA PELAKSANAAN KEBIJAKAN PEMERINTAH DALAM PENANGGULANGAN KEMISKINAN DI INDONESIA

Poverty Reduction Policies here have a very strategic role in efforts to increase poverty reduction in Indonesia. Various programs have been created and run by the government in various forms over a long period of time. However, in the implementation phase of the policy, it turns out that there are still many obstacles and obstacles. The distribution of social assistance that has not been properly targeted (distribution bias) is one of the main problems that must be immediately found the best solution. This distribution bias is caused by the discretion of the program implementing officers in the field (street level bureaucracy). This condition has had an impact on the achievement of the poverty reduction target which has not been optimal.

The impact of fiscal efficiency on poverty reduction in Indonesia: institutional factor and geographical differences

The impact of fiscal efficiency on poverty reduction in Indonesia: institutional factor and geographical differences

ANALISIS PENGARUH VARIABEL EKONOMI MAKRO TERHADAP BESARNYA JUMLAH PENERIMAAN ZAKAT DI BADAN AMIL ZAKAT NASIONAL (BAZNAS) PUSAT TAHUN 2014 – 2018

Indonesia actually has very big zakat potensial reaching 217 trilion rupiah. This huge potential is equivalent to 3.4% of Indonesia’s GDP in 2010. The large potential of zakat can be a solution to overcome poverty in Indonesia. One of the factors that influence zakat receipt in indonesia is the macroeconomic factor. However, this potential still tends not to have a positive impact on the macro economy and overall poverty reduction in Indonesia. This study aims to examine the impact of macroeconomic factors in the form of inflation, BI-Rate, Profit sharing ratio,exchange rate and the amount of money in circulation against zakat receipts in the Central national amil zakat agency (BAZNAS). This research is quantitative using secondary data. The data used are sourced from BAZNAS, Bank Indonesia and the Financial Services Authority (OJK) from 2014-2018. Data were analyzed using multiple linear regression. The result of this study indicate that simultaneously, inflation, BI Rate, profit sharing ratio, exchange rate and the amount of money in circulation (M2) have an effect on the amount of zakat receipts in Indonesia. But partially, the ratio for the result is not affects the amount of zakat receipts in Indonesia. In contras to inflamation, the BI-Rate and exchanged rate has a negative and significant effect. Meanwhile, the amount of money in circulation has a positive and significant effect on zakat aceptance in the central national amil zakat agency (BAZNAS) 2014-2018.

The Role of Education and Technology Adaptation in Poverty Reduction in Indonesia

This study examines the role of education in improving technology adoption as reflected in technology inclusion, poverty alleviation and efforts to increase community income which is reflected in economic growth. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We found that education investment and technology inclusion were positively related to economic growth. And,negatively related to probability. This indicates that education plays a role in encouraging technological inclusion which reflects technological adaptation and encourages economic growth which is an indicator of the prosperity of the people in Indonesia which is strengthened by a negative relationship with poverty which indicates that education plays an important role in poverty alleviation

Analisis Variabel Sosial Ekonomi Terhadap Kemiskinan di Indonesia

Indonesia's poverty condition in March 2019 recorded at 9.41 percent. Supposedly, Indonesia reaches the RPJMN target where the poverty level is planned at a 7-8 percent level. The High levels of rural poverty compared to urban areas exceeded the percentage of national poverty. Low wages are also an indication that the problem of poverty occurs continuously. The purpose of this research is to know how socio-economic variables such as human development, unemployment, wage, and inequality can affect poverty reduction in Indonesia. This research uses secondary data obtained from the website of Statistics Indonesia (BPS) and the Databoks Katadata website. This study uses cross-section data with 34 provincial observations in the year 2019. This research used econometric methodologies with the regression of Ordinary Least Square as an analysis tool. This research show that poverty in Indonesia is still very dominant in the island of Papua, in the provinces of Papua and West Papua and in the island of Nusa Tenggara, in the provinces of West Nusa Tenggara and East Nusa Tenggara. Human development has a negative effect where every human development increase by 1 percent will reduce poverty in Indonesia by 5.69 percent. The declining unemployment rate has contributed to poverty reduction in Indonesia by 0.34 percent. Wages, in this case, can reduce poverty. Increasing wages by 1 percent can reduce poverty by 1.08 percent and vice versa. Reducing inequality by 1 percent can reduce poverty by up to 1.88 percent.Keywords: poverty, HDI, unemployment, wage, inequality

Price rationing in Islamic Cooperatives Institutions (challenges and solutions to poverty reduction in Indonesia)

A primary focus of this study is to highlight the suggested solutions from Islamic cooperatives practitioners to overcome the challenges in the practice of price rationing assessment in three Bottom of the Economic Pyramid (BOP) regions, namely Daerah Istimewa (DI) Yogyakarta, Nusa Tenggara Barat (NTB) and Makassar, Indonesia. A total of 26 Islamic cooperatives Institutions (MFIs) in Indonesia were chosen based on purposive sampling methods. An in-depth interview was developed to profile the data related to the suggested solution. This study found evidence that Baitul Maal Wa Tamwil (BMT) has a higher margin than commercial and rural banks. The problem of higher margin is fixed through reducing margin (giving special margin for loyal consumers, seeking a channelling bank with lower margin, giving an option of margin negotiation and increasing financing distribution) and giving rationalization to customers of the benefit associated with a high margin (giving value to the product, increasing the level of sharia understanding and good communication of margin).