DETERMINANTS OF POVERTY IN THE FORMER KEDU RESIDENCY IN 2010-2022

Abstract

Poverty is a critical issue faced by the Indonesian government, including the Provincial Government of Central Java. The former Kedu Residency has been prioritized by Ganjar Pranowo, the Governor of Central Java, in the poverty alleviation program within the province. This prioritization stems from the Kedu region's significant contribution to the severity of poverty in Central Java. The objective of this study is to analyze the impact of economic growth, population size, education, and unemployment on poverty in the former Kedu Residency from 2010 to 2022. This study employs secondary data from the Central Statistics Agency (BPS) of Central Java Province, utilizing panel data regression as the analytical tool. The panel data processing in this study was conducted using Eviews 9 software. The findings of this study indicate that economic growth and population size have a positive and significant effect on poverty in the former Kedu Residency during the period of 2010-2022. Education has a negative and significant effect on poverty in the former Kedu Residency from 2010-2022, whereas unemployment does not have a significant effect on poverty in the former Kedu Residency during the same period. The implications of these findings suggest that the government should aim to enhance economic growth through policies that promote production and investment, manage population growth rates by optimizing family planning programs, ensure equitable access to education, particularly in remote areas, and reduce unemployment through skills training, the development of labor-intensive industries, and the promotion of entrepreneurial interest among residents in the former Kedu Residency.