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The dynamics of micro and small industries and poverty: A geographical perspective with panel data evidence Dinar Melani Hutajulu; Fera Febriana Sritutur; Maulia Siti Mukharohmah; Putri Nisrina Damayanti; Aini Fadhilah Dzakirah
Optimum: Jurnal Ekonomi dan Pembangunan Vol. 16 No. 1 (2026)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/optimum.v16i1.14925

Abstract

Despite government efforts, including initiatives like cash transfer programmes, food assistance schemes, and the existence of micro, small, and medium enterprises (MSMEs), poverty remains a persistent problem in Indonesia. Previous studies have yielded conflicting results on the extent to which MSMEs impact poverty reduction efforts. This study examines the effects of micro and small-scale industries on poverty levels in Indonesia, with a particular emphasis on regional disparities between Java and non-Java provinces, as well as between Western and Eastern regions. The analysis utilises panel data from 34 provinces spanning the period from 2017 to 2023, employing panel regression models. The findings indicate that growth in output and employment within small and micro industries is linked to higher poverty levels, suggesting that structural limitations, including low productivity, restricted access to capital, and the prevalence of enterprises focused on survival, hinder their effectiveness in reducing poverty. Research in the region shows that the negative consequence is more apparent in Java and Western Indonesia, primarily due to population pressures and existing wage systems. Unemployment has a significant impact on increasing poverty levels, whereas economic growth helps to decrease them. The Human Development Index (HDI) showed no statistically significant effect. In summary, the research indicates that micro and small enterprises have not yet demonstrated efficacy in poverty alleviation in Indonesia.
Empowering Trunan Village Youth Organization Through a Circular Economy Based Scrub Incinerator AINI FADHILAH DZAKIRAH; ADELYN; SIFA UDLMA FARRIH; WIDODO HANGGORO; DIMAS AHNAFI AFLAH; ADITYA KUMALA DEWI
Research Journal of Social Economics Empowerment Vol. 2 No. 2 (2026): Agustus 2026
Publisher : Universitas Tidar

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Abstract

Plastic waste residues remain a problem in Trunan Village, Magelang City, although the community already has community-based waste management activities. This community service program aimed to improve the capacity of the Trunan Village Youth Organization in managing plastic waste residues through the application of a Scrub Incinerator and the utilization of processing residues as prototypes of construction materials. The implementation methods included needs identification, socialization, pre-test and post-test as indicators of knowledge evaluation, technology demonstration, residue utilization practices, mentoring, and evaluation. The results showed that the Scrub Incinerator could be applied to process plastic waste residues, with the wet scrubber and chimney filtration media functioning during the demonstration based on visual observations. The effectiveness of pollutant reduction could not be quantitatively determined because emission measurements had not been conducted. The utilization of residues produced one Roster prototype and one Hebel prototype, although neither had undergone technical testing. The program also produced an operation manual, involved the handover of the equipment to the partner, and established cooperation with the Waste Bank as a supplier of plastic waste. Further mentoring is required to achieve the Youth Organization's operational independence, conduct technical testing, and develop product marketing.