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All Journal Jurnal Ilmiah Manajemen Kesatuan
Parera, Jolyne Myrell
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Economics, Econometrics & Finance Social Sciences

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The Role of Microloans, Informal Employment, and Income in Reducing Poverty in Eastern Indonesia Suratini; Parera, Jolyne Myrell; Nur, Imran Syafei M.; Gobay, Maria Yuvita
Jurnal Ilmiah Manajemen Kesatuan Vol. 13 No. 3 (2025): JIMKES Edisi Mei 2025
Publisher : LPPM Institut Bisnis dan Informatika Kesatuan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37641/jimkes.v13i3.3313

Abstract

This study analyzes the influence of microloans, the availability of informal employment, and income levels on poverty rates in the Eastern Indonesia region. Using panel data from 13 provinces over the 2020–2022 period and a Random Effect Model regression method, the results show that microloans and the availability of informal employment significantly contribute to reducing poverty, while income levels do not have a significant partial effect. However, collectively, the three variables have a significant impact on poverty rates. These findings highlight the importance of expanding access to microloans and improving the quality of informal employment to support poverty alleviation efforts. Microloans can help low-income individuals start or grow small businesses, while the informal sector provides job opportunities for those not absorbed into the formal labor market.
Co-Authors Gobay, Maria Yuvita Nur, Imran Syafei M. Suratini