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Macroeconomic Factors Affecting Poverty in Central Java (2018–2023): Post-Pandemic Challenges and Inclusive Growth Perspective Muhammad, Tiara Rizky Zein; Widyawati, Retno Febriyastuti
Pattimura Proceeding 2026: Proceeding of the 3rd International Conference of International Conference on Business and Eco
Publisher : Pattimura University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/pcst.2026.iconbe.p100-109

Abstract

This study analyzes the influence of macroeconomic variables on poverty levels in Central Java Province during the 2018–2023 period, which captures the pre-pandemic, pandemic, and post-pandemic phases. Using panel data from 34 regencies/cities and employing a Fixed Effect Model (FEM), this research examines the effects of the open unemployment rate (TPT), minimum wage, Human Development Index (HDI), and Gross Regional Domestic Product (GRDP) on poverty. The results show that TPT does not have a significant effect on poverty, while minimum wage has a positive and significant effect, and HDI and GRDP have significant negative effects on poverty. These findings indicate that improvements in human development and inclusive economic growth are crucial for poverty reduction, while minimum wage policies may generate unintended short-term effects, particularly in regions dominated by informal employment. This study contributes by highlighting post-pandemic regional dynamics and the importance of inclusive development strategies in addressing poverty under conditions of economic uncertainty.
The Influence of Economic Growth, Unemployment, and Capital Expenditure in East Nusa Tenggara Province Hartania, Najma Afifa; Widyawati, Retno Febriyastuti
Pattimura Proceeding 2026: Proceeding of the 3rd International Conference of International Conference on Business and Eco
Publisher : Pattimura University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/pcst.2026.iconbe.p56-64

Abstract

East Nusa Tenggara Province is the third poorest province in Indonesia. This study aims to analyze the effect of macroeconomic variables on the poverty rate in East Nusa Tenggara Province for the period 2017- 2023. East Nusa Tenggara Province is the third poorest province in Indonesia. Gross Regional Domestic Product (GRDP) per capita, open unemployment rate, and capital expenditure are the independent variables used in this study. This study uses panel data regression analysis using a random effects model (REM) with secondary data from 22 Districts/Cities in East Nusa Tenggara Province obtained from the Central Statistics Agency (BPS). According to this study, GRDP per capita has a significant negative effect, the Open Unemployment Rate variable has a positive and significant effect, while the capital expenditure variable has a positive and insignificant effect. Policy makers can learn a lot from this study, such as the importance of increasing economic growth and improving the quality of human resources, as well as how to optimize the capital expenditure budget for public investment in order to combat poverty effectively