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Emmilya Umma Azizah Gaffar
Development Economics Study Program, Universitas Mulawarman, Indonesia
Economics, Econometrics & Finance Education

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Regional Fiscal Policy and The Phenomenon of Poverty in Indonesia Yesi Aprianti; Hotsawadi; Emmilya Umma Azizah Gaffar; Muliati
Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB) Vol. 13 No. 01 (2025): Jurnal Pendidikan Ekonomi & Bisnis (DOAJ & SINTA 2 Indexed)
Publisher : Faculty of Economics, Universitas Negeri Indonesia,Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21009/JPEB.013.1.4

Abstract

The poor population in Indonesia is unevenly distributed across districts and cities. This research aims to measure the impact of regional fiscal policy on reducing poverty levels. Regional financial transfers (TKD) serve as an instrument for central government intervention. The study also focuses on the classification of regional government spending and its relationship to poverty levels. Data were collected from 2016 to 2022 across Indonesian districts and cities, excluding regions with divergent data trends. The hypothesis posits that the impact of expenditure allocation across sectors varies in its effectiveness in alleviating poverty. To test this, the study employs a panel ARDL analysis to capture potential lag effects in the predictors. The main finding reveals the consistent influence of regional income on poverty reduction in both the short and long term. Meanwhile, TKD has a positive impact, as part of its fiscal gap component targets assistance to areas with high poverty levels. However, regional spending from various sources also shows a positive correlation with poverty rates, although with relatively low coefficient values. This suggests that poverty reduction is not yet a central focus of regional government spending
Co-Authors Hotsawadi Muliati Yesi Aprianti