Government Intervention Strategy in Poverty Reduction

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 intervent...

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Main Authors: Aln Pujo Priambodo, Mohammad Ahlis Djirimu
Format: Article
Language:English
Published: Bina Praja Press 2024-12-01
Series:Jurnal Bina Praja
Subjects:
Online Access:https://jurnal.kemendagri.go.id/index.php/jbp/article/view/2331
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author Aln Pujo Priambodo
Mohammad Ahlis Djirimu
author_facet Aln Pujo Priambodo
Mohammad Ahlis Djirimu
author_sort Aln Pujo Priambodo
collection DOAJ
description 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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language English
publishDate 2024-12-01
publisher Bina Praja Press
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series Jurnal Bina Praja
spelling doaj-art-7df9154283564eb8a168f186da06d7b52025-01-29T02:33:41ZengBina Praja PressJurnal Bina Praja2085-43232503-33602024-12-0116310.21787/jbp.16.2024.489-508Government Intervention Strategy in Poverty ReductionAln Pujo Priambodo0Mohammad Ahlis Djirimu1Regional Office of the Directorate General of Treasury of Central Sulawesi Province, Palu City, IndonesiaUniversitas Tadulako, Palu City, Indonesia 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. https://jurnal.kemendagri.go.id/index.php/jbp/article/view/2331Poverty ReductionK-Means ClusteringLocal Government ExpenditureGovernment Credit Program
spellingShingle Aln Pujo Priambodo
Mohammad Ahlis Djirimu
Government Intervention Strategy in Poverty Reduction
Jurnal Bina Praja
Poverty Reduction
K-Means Clustering
Local Government Expenditure
Government Credit Program
title Government Intervention Strategy in Poverty Reduction
title_full Government Intervention Strategy in Poverty Reduction
title_fullStr Government Intervention Strategy in Poverty Reduction
title_full_unstemmed Government Intervention Strategy in Poverty Reduction
title_short Government Intervention Strategy in Poverty Reduction
title_sort government intervention strategy in poverty reduction
topic Poverty Reduction
K-Means Clustering
Local Government Expenditure
Government Credit Program
url https://jurnal.kemendagri.go.id/index.php/jbp/article/view/2331
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