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All Journal MEDIA KONSERVASI Ekonomikawan : Jurnal Ilmu Ekonomi dan Studi Pembangunan Journal of Economic, Bussines and Accounting (COSTING) Martabe : Jurnal Pengabdian Kepada Masyarakat EKO-REGIONAL JURNAL PENGEMBANGAN EKONOMI WILAYAH Journal on Education International Journal of Economics, Business and Accounting Research (IJEBAR) eCo-Buss Jurnal Ekonomi Pembangunan Jurnal EK dan BI Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences Journal Corner of Education, Linguistics, and Literature International Journal of Social Science, Education, Communication and Economics Economic Reviews Journal PERADABAN JOURNAL of ECONOMIC and BUSINESS E-journal Field of Economics, Business and Entrepreneurship (EFEBE) Journal of Scientific Research, Education, and Technology Jurnal Sosial dan Sains Journal Research of Social Science, Economics, and Management Innovative: Journal Of Social Science Research Priviet Social Sciences Journal International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC) BULLET : Jurnal Multidisiplin Ilmu Al-Zayn: Jurnal Ilmu Sosial & Hukum Jurnal Pengabdian Masyarakat dan Riset Pendidikan Nemui Nyimah Global Academy of Business Studies Jurnal Simki Economic
Toto Gunarto
Fakultas Ekonomi Dan Bisnis, Universitas Lampung
Religion Agriculture, Biological Sciences & Forestry Arts Humanities Astronomy Computer Science & IT Decision Sciences, Operations Research & Management Earth & Planetary Sciences Economics, Econometrics & Finance Education Engineering Environmental Science Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Library & Information Science Mathematics Medicine & Pharmacology Nursing Physics Public Health Social Sciences Other

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The effect of financial inclusion on poverty rate in Sumatra Island Imron Rosyadi; Toto Gunarto; Deddy Yuliawan
Global Academy of Business Studies Vol. 2 No. 1 (2025): July
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/gabs.v2i1.3585

Abstract

Purpose: This study examines the effects of financial inclusion and inflation on poverty reduction across ten provinces on the island of Sumatra, Indonesia, from 2017 to 2023. Despite Indonesia’s significant economic progress in recent decades, poverty and inequality remain persistent challenges, particularly in Sumatra, where disparities in access to resources and opportunities continue to exist. Research Methodology: A quantitative approach was employed using panel data from ten provinces in Sumatra. Regression analysis was conducted to evaluate the relationship between the Financial Inclusion Index (IKK), inflation, and poverty rate. Results: The findings reveal that the Financial Inclusion Index (IKK) has a significant negative effect on poverty, indicating that increased access to financial services helps reduce poverty levels. Inflation also shows a significant negative effect, suggesting that controlled inflation within a stable range may strengthen household purchasing power and mitigate poverty. Conclusions: Enhanced financial inclusion effectively reduces poverty by facilitating access to credit, savings, and other financial services that empower local communities. Stable inflation management contributes to a predictable economic environment conducive to poverty alleviation. Limitations: This study is limited to Sumatra and excludes other socioeconomic factors such as education, employment, and government assistance programs that may influence poverty levels. Contribution: The study provides empirical evidence of the regional effects of financial inclusion and inflation on poverty, emphasizing the importance of localized economic policy and consistent monitoring to achieve inclusive and sustainable growth.
Co-Authors Agus Priyono Kartono Ahmad Archiko pailendra Ahmad Rowatul Irham Anggi Rosalia Putri Annisa Femiya Arivin Ratih Arivina Ratih Yulihar Taher Asih Murwiati Asih Murwiati Ayunda Rahmanita Ahmad Bima Prasetya Kumara Chairunnisa Chairunnisa Ciptawaty, Ukhti Deddy Yuliawan Dedy Yuliawan Dedy Yuliawan Derry Putro Adji Desliyani Tri Wandita Deswira Aulia Dhea Fathyarani Zasmasya Dian Fajarini Emi Maimunah Emi Maimunah Esha Galang Gati Mahendra Fauzi Nur Kholis Febiola Putri Giska Mutiara Ferdi Septiawan Perdana Feri Hardani Feri Hardani Galang Samudra Hardiansyah Batubara, Masma Noor Hendra Prasetya I Wayan Suparta I Wayan Suparta . Imam Awaluddin Imron Rosyadi Irma Febriana MK Lailatul Nasih M Husaini Marselina Marselina Marselina Megeas Deselpan Moniyana, Resha Muhamad Aziz Raynaldi Muhammad Husaini Muhiddin Sirat Musfik Amrullah Nabila Assyifa Neli Aida Nisa Aprilliani Nugroho Adhi Puspito Nurbetty Herlina Sitorus Nurfadhilah Finanda Nurike Fransiska Nurlaila Indah Sari Prapti Lestari Reza Aulia Rily Yunita Rini Aprilia Aprilia Rizky Rafliansyah RR Erlina Salsadilla Charisa Putri Siti Badriyah Rushayati Sony Pramaningtyas Syarifah Aini Tria Ratna Wulandari Umar Wafa Al-Haiban Vitriyani Tri Purwaningsih Wibowo, Hendy Wulan Kurniasari Yeni Mulyani Yudastio Zainul hamzah Zulfa Emalia Zulfa Emalia