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Original Research Article Open Access SINTA 2 Accredited

Government Intervention Strategy in Poverty Reduction

Study on the District and City in Indonesia Across 2016-2023

Authors

  • Aln Pujo Priambodo 1* Corresponding author
  • Mohammad Ahlis Djirimu 2
  • 1 Regional Office of the Directorate General of Treasury of Central Sulawesi Province, Palu City, Indonesia
  • 2 Universitas Tadulako, Palu City, Indonesia
  • *Corresponding author
DOI
10.21787/jbp.16.2024.489-508
Published & Pages
31 December 2024 · pp. 489-508
Manuscript History
Received22 Oct 2024 Published31 Dec 2024
License
CC Attribution-NonCommercial-ShareAlike 4.0
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Abstract

Poverty remains a significant challenge in Indonesia, with a national rate of around 9.36% in 2023 and 16 provinces exceeding this poverty level. This study aims to analyze poverty patterns across districts and cities by using K-Means Clustering and examine the effectiveness of government interventions in poverty reduction through panel data regression with the Fixed Effect Model (FEM). Results indicate that higher-poverty areas benefit most from social assistance, village funds, credit schemes, and GRDP, while capital spending exacerbates poverty. On the other hand, lower-poverty areas achieve reductions through capital spending, village funds, and GRDP, with minimal impact from social assistance and credit schemes. Also, these results emphasize the need for targeted interventions, such as optimizing social assistance and credit access programs in higher-poverty areas and implementing growth-focused strategies, including physical infrastructure development, in lower-poverty regions.

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Author Biographies

  • Mohammad Ahlis Djirimu · Universitas Tadulako, Palu City, Indonesia

    Head Lector in Faculty of Economic and Business

Copyright & Open Access License

Copyright (c) 2024 Author(s). This article is licensed under CC Attribution-NonCommercial-ShareAlike 4.0.

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