Poverty Determinant Analysis and Poverty Reduction Strategy in Aceh Province

Oct 13, 2025 by leolavanderia.com.br 118 views

Poverty Determinant Analysis and Poverty Reduction Strategy in Aceh Province

Introduction

Poverty remains a significant challenge in many parts of the world, including Indonesia's Aceh Province. The province has made significant progress in recent years, but poverty rates remain high, particularly in rural areas. Understanding the determinants of poverty and developing effective poverty reduction strategies are crucial for addressing this issue. This study aims to provide empirical evidence of the effect of direct expenditure, economic growth, open unemployment rates, per capita expenditure, and Human Development Index (HDI) on the number of poor people in Aceh Province. We also examine the poverty reduction strategies that can be implemented in the province.

Literature Review

Poverty is a complex and multifaceted issue that is influenced by various economic and social factors. Research has shown that poverty is often linked to low levels of education, limited access to healthcare, and unemployment (World Bank, 2019). In the context of Aceh Province, poverty is also influenced by the province's history of conflict and natural disasters, which have had a significant impact on the local economy and infrastructure.

Methodology

This study uses a combination of secondary and primary data to examine the determinants of poverty in Aceh Province. Secondary data was obtained from the Central Statistics Agency (BPS) and the Directorate General of Budget of the Ministry of Finance for the period 2010-2022. Primary data was collected through a survey of 1000 households in Aceh Province. The analytical method used to test poverty determinants is data panel data regression analysis, while SWOT analysis is applied to evaluate poverty reduction strategies.

Research Result

Based on the results of the model selection test using the Chow Test and the Hausman test, it is determined that the fixed effect model (FEM) is the most appropriate model for this research. The findings of the effect model still show that:

Direct expenditure has a significant negative effect on the number of poor people. This suggests that increasing direct expenditure can help reduce poverty in Aceh Province.
Economic growth has a significant positive effect on poverty reduction. This indicates that economic growth can help reduce poverty in the province.
Open unemployment rate provides a significant positive contribution to the increase in the number of poor people. This suggests that high unemployment rates can exacerbate poverty in Aceh Province.
Expenditures per capita have a significant negative impact on poverty. This indicates that increasing per capita expenditure can help reduce poverty in the province.
Human Development Index (HDI) also has a significant negative effect on the number of poor people. This suggests that improving HDI can help reduce poverty in Aceh Province.

Simultaneous test (F-test) shows that these variables jointly affect the number of poor people in Aceh Province.

SWOT Analysis and Poverty Reduction Strategy

In SWOT analysis, it was found that the poor in Aceh Province were in quadrant 1, with an internal factor value of 0.05 and external factors of 0.10. This indicates that the main challenge in poverty reduction in Aceh lies in the internal factors that must be strengthened.

The necessary strategies are S-O Strategy (Strengths-Opportunities), which means strengthening internal aspects is the most appropriate choice in poverty reduction efforts in Aceh Province. Strengthening internal factors such as improving the quality of education, access to health services, and the development of community skills, can be a strategic step to reduce poverty. Thus, collaboration between the government, the private sector, and the community is very important to create programs that touch the roots of problems and empower local communities.

Conclusion

This study shows that the determinant of poverty in Aceh Province is strongly influenced by various economic and social factors. To achieve significant poverty reduction, a strategy is needed that focuses on strengthening internal aspects that are able to support economic growth and community welfare. It also shows that the right intervention can bring positive changes in the economic and social conditions of the Acehnese people.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should prioritize improving the quality of education and access to health services in Aceh Province.
The private sector should collaborate with the government and community to develop programs that empower local communities.
The community should be involved in poverty reduction efforts through participatory approaches.
The government should implement policies that support economic growth and job creation in Aceh Province.

Limitations

This study has several limitations. Firstly, the data used in this study is limited to the period 2010-2022, which may not reflect the current situation in Aceh Province. Secondly, the study only examines the determinants of poverty and does not provide a comprehensive analysis of the poverty reduction strategies that can be implemented in the province.

Future Research Directions

Future research should focus on examining the effectiveness of poverty reduction strategies in Aceh Province. This can be done through a longitudinal study that examines the impact of poverty reduction programs on poverty rates in the province. Additionally, future research should also examine the role of external factors such as climate change and natural disasters in exacerbating poverty in Aceh Province.

References

World Bank. (2019). Poverty and Shared Prosperity 2019: Reversals of Fortune. World Bank Publications.

Appendices

Appendix 1: List of variables used in the study

Appendix 2: Description of the data collection process

Appendix 3: Results of the model selection test using the Chow Test and the Hausman test

Appendix 4: Results of the SWOT analysis

Appendix 5: List of recommendations for poverty reduction in Aceh Province
Frequently Asked Questions (FAQs) on Poverty Determinant Analysis and Poverty Reduction Strategy in Aceh Province

Q: What is the main objective of this study?

A: The main objective of this study is to provide empirical evidence of the effect of direct expenditure, economic growth, open unemployment rates, per capita expenditure, and Human Development Index (HDI) on the number of poor people in Aceh Province.

Q: What is the significance of this study?

A: This study is significant because it provides a comprehensive analysis of the determinants of poverty in Aceh Province, which can inform poverty reduction strategies in the province.

Q: What are the key findings of this study?

A: The key findings of this study are:

Direct expenditure has a significant negative effect on the number of poor people.
Economic growth has a significant positive effect on poverty reduction.
Open unemployment rate provides a significant positive contribution to the increase in the number of poor people.
Expenditures per capita have a significant negative impact on poverty.
Human Development Index (HDI) also has a significant negative effect on the number of poor people.

Q: What are the implications of this study?

A: The implications of this study are that poverty reduction in Aceh Province requires a multi-faceted approach that addresses both internal and external factors. Strengthening internal factors such as improving the quality of education, access to health services, and the development of community skills can be a strategic step to reduce poverty.

Q: What are the limitations of this study?

A: The limitations of this study are:

The data used in this study is limited to the period 2010-2022, which may not reflect the current situation in Aceh Province.
The study only examines the determinants of poverty and does not provide a comprehensive analysis of the poverty reduction strategies that can be implemented in the province.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

The government should prioritize improving the quality of education and access to health services in Aceh Province.
The private sector should collaborate with the government and community to develop programs that empower local communities.
The community should be involved in poverty reduction efforts through participatory approaches.
The government should implement policies that support economic growth and job creation in Aceh Province.

Q: What are the future research directions?

A: Future research should focus on examining the effectiveness of poverty reduction strategies in Aceh Province. This can be done through a longitudinal study that examines the impact of poverty reduction programs on poverty rates in the province. Additionally, future research should also examine the role of external factors such as climate change and natural disasters in exacerbating poverty in Aceh Province.

Q: What are the policy implications of this study?

A: The policy implications of this study are that poverty reduction in Aceh Province requires a multi-faceted approach that addresses both internal and external factors. The government should prioritize improving the quality of education and access to health services in Aceh Province, and implement policies that support economic growth and job creation in the province.

Q: What are the implications for the community?

A: The implications for the community are that they should be involved in poverty reduction efforts through participatory approaches, and that they should be empowered to develop their own programs and solutions to address poverty in their communities.

Q: What are the implications for the private sector?

A: The implications for the private sector are that they should collaborate with the government and community to develop programs that empower local communities, and that they should prioritize investing in poverty reduction initiatives in Aceh Province.

Q: What are the implications for the government?

A: The implications for the government are that they should prioritize improving the quality of education and access to health services in Aceh Province, and that they should implement policies that support economic growth and job creation in the province.

Q: What are the implications for poverty reduction in Aceh Province?

A: The implications for poverty reduction in Aceh Province are that a multi-faceted approach that addresses both internal and external factors is required. Strengthening internal factors such as improving the quality of education, access to health services, and the development of community skills can be a strategic step to reduce poverty.