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All Journal Jurnal Litbang Sukowati : Media Penelitian dan Pengembangan ECOPLAN : JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES IDEI: Jurnal Ekonomi & Bisnis Ekopem: Jurnal Ekonomi Pembangunan Journal of Economics Research and Policy Studies WELFARE Jurnal Ilmu Ekonomi Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi) Jurnal Ekonomi Pembangunan, Manajemen & Bisnis, Akuntansi Optimum: Jurnal Ekonomi dan Pembangunan Jurnal Riset Daerah
Maulia Siti Mukharohmah
Unknown Affiliation
Agriculture, Biological Sciences & Forestry Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Environmental Science Public Health Social Sciences Other

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The dynamics of micro and small industries and poverty: A geographical perspective with panel data evidence Hutajulu, Dinar Melani; Sritutur, Fera Febriana; Mukharohmah, Maulia Siti; Damayanti, Putri Nisrina; Dzakirah, Aini Fadhilah
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.
Co-Authors Aeni, Amalia Nur Alifah Kusumaningrum Anandira, Luna Mayang Annisa Nur Rahmawati Utomo Arwansa, Damai Damayanti, Putri Nisrina Dinar Melani Hutajulu Dwi Ringga Edwid Dian Negara Dzakirah, Aini Fadhilah Hanif Afif Naufal Izzah Mariatul Maslakhah Kartika Supriyaningsih Krishnaprabhacitta, Lintang Maulana, Winda Nurul Fadhilah Prayogi, Arif Putri, Jasmine Ahmadya Rahmanella, Khaylila Rahmatillah, Agisva Elvatikha Salsabila , ‘Ainun Hanum Saroh, Hikma May Septiani, Yustirania Sipayung, Ade Sulastri Sritutur, Fera Febriana Tri Mulyaningsih Wicaksono, Rayhan Arya Wiyono, Vincentius Hadi Wulandari, Meisyaroh Catur Yeti Lastuti Yustirania Septiani