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All Journal Return : Study of Management, Economic and Bussines Inkubis: Jurnal Ekonomi dan Bisnis
Syaiful Syaiful
Universitas Borobudur
Economics, Econometrics & Finance

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Heterogeneity of Rural Poverty in Indonesia: An Analysis Using the Moment Panel Quantile Approach Syaiful Syaiful; Muhamad Halilintar
Inkubis : Jurnal Ekonomi dan Bisnis Vol. 8 No. 1 (2026): INKUBIS Jurnal Ekonomi Dan Bisnis
Publisher : Politeknik Siber Cerdika Internasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59261/inkubis.v8i1.177

Abstract

Background: Rural poverty in Indonesia remains consistently higher than urban poverty; mean-based regression methods are heavily used but conceal strong spatial and distributional heterogeneity across provinces. A methodological gap exists in understanding how provinces experience the effects of policy variables across different points in the poverty distribution. Objective: This study employs a quantile-sensitive approach to investigate the heterogeneous determinants of rural poverty growth in 33 Indonesian provinces from 2015 to 2023. Methods: Data from 33 provinces (2015–2023, n = 297 observations) are analyzed using the Method of Moments Quantile Regression (MMQR) with fixed effects, following cross-sectional dependence (CSD) and CIPS panel unit root tests. Results: The effects of development variables on rural poverty vary considerably across quantiles. The capitalization of village funds appears to correlate negatively with rural poverty prevalence in provinces experiencing extreme deprivation and positively elsewhere, suggesting there is inefficiency and/or misallocation at play. Land use change can alleviate poverty in semi-urbanizing regions but harms deeply agrarian, poor communities. Migration tends to reduce poverty only in wealthier areas. Agricultural growth reduces rural poverty mainly in middle-quantile regions, while unemployment consistently exacerbates poverty across all quantiles. Conclusion: The study contributes novel heterogeneity evidence to the rural poverty literature and recommends quantile-differentiated policy targeting for Indonesian rural development.
Inequality of Economic Development Between Regions: A Case Study of Eastern and Western Indonesia Hapsari Widayani; Syaiful Syaiful
Return : Study of Management, Economic and Bussines Vol. 5 No. 6 (2026): Return: Study of Management, Economic and Business
Publisher : PT. Publikasiku Academic Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57096/return.v5i6.473

Abstract

Indonesia faces persistent disparities in economic development between its western and eastern regions, a structural issue rooted in historical concentration of growth and investment.  This study aims to analyze the magnitude and trends of economic development disparities between Eastern and Western Indonesia, identify the main factors causing these inequalities, and evaluate the impact of such disparities on regional welfare. The research employed a quantitative approach with secondary data from 2015-2023. Indicators include Gross Regional Domestic Product (GRDP), Human Development Index (HDI), poverty rate, and investment. Results show significant gaps where Western Indonesia's average GRDP per capita reaches Rp 65.4 million while Eastern Indonesia only Rp 38.7 million. Western Indonesia's HDI reaches 72.8 while Eastern Indonesia reaches 68.3. Eastern Indonesia's poverty rate 11.8% is higher than Western Indonesia's 8.2%. Main factors include investment concentration, limited infrastructure, and primary sector dependence. In conclusion, these disparities are widening over time and have negative impacts on social welfare and national integration. The study recommends investment redistribution, infrastructure development acceleration, and economic diversification to reduce disparities.
Co-Authors Hapsari Widayani Muhamad Halilintar