Sustainability Strategy to Alleviate Poverty Through Education, Energy, GRDP, and Special Funds: Evidence from Indonesia

Abstract

This study discusses the approach to poverty alleviation that occurs in Indonesia, reviewed by using four variables that match the situation. The simulation based on our approach model applies an integrated and multidimensional approach that combines elements of various approaches to alleviating the poverty. This research uses cross-sectional data from 501 regencies and cities the Republic of Indonesia. The data is analyzed using OLS multiple regression with robustness. In addition, this study offers policies for the government to design, manage, and implement poverty alleviation programs. This study enriches the poverty alleviation literature in knowledge capture and sample adequacy. The findings of this study indicate that not all selected independent variables affect the poverty. There are four variables studied in this study, namely, literacy, electricity energy, and GDRP with oil. From the four variables, only three significantly affect the poverty as dependent variable. The most surprising thing is that the special allocation fund variable has an expected sign on its coefficient contrary to the hypothesis. Therefore, the special allocation fund does not support the poverty alleviation throughout the cities and districts in Indonesia. Findings of this study confirm, to some extent, the complementarity of the independent variable to the dependent variable and various approaches to poverty alleviation that need to be employed comprehensively.