<![CDATA[ABSTRACT Economic growth and poverty is an important indicator to see the success of a country's development. This study aims to determine and analyze the two-way influence  between  economic  growth  and  poverty  in  Indonesia:  (1)  The  effect  of unemployment,       poverty,  investments     and  economic    growth.    (2) The  effect  of investment,    life expectancy,    literacy,  and  length  of education,    and  economic growth  on  poverty.This  study  uses  panel  data  or  pooled  time-series  crossection using time series data from the years 2005-2009, and the crossection is that there are 33 provinces in  Indonesia. The method used is descriptive and econometric analysis    using  a  model   of  simultaneous     equations    (simultaneous     equations models)  with  two-stage  least  squares  method  (Two-Stage  Least  Square  2SLS) using Indirect Least Square (ILS). The  results  showed  that  there  is  a  two-way  interplay  between  economic growth and poverty. Significant effect on economic growth in poverty reduction, especially  in  rural  areas   there  are  many  pockets   of poverty.  the  opposite  of poverty is also a significant effect on economic growth. Through improved access to capital, quality of education (literacy and increased length of education) and health (increased life  expectancy) of the poor can increase their productivity in the attempt during the period 2000-2009. The unemployment rate, and significant investment     on  economic    growth.    Furthermore,     investments    in  domestic   and foreign investments, life expectancy, literacy and school longer a significant effect on the number of poor. Based    on these  findings   the policy  the government     should   do  is spur economic  growth  through  the  expansion  of  investment  especially  in  agriculture (agribusiness     and   agro-industries)    in rural   areas  where    many   poor   people depend.  Recommended  to  the  government  in  order  to  spur  economic  growth  in urban areas in order to prioritize employment in which informal sector in general the  poor  do  business.   Whereas    in rural  areas  run projects   that are  capital - intensive   investment    to open   up  employment     opportunities,    especially   in the agricultural sector. Furthermore, it also advised the government both at central and  regional  levels  through  the  state  budget  and  regional  budgets  in  order  to further enhance the percentage of budget allocation on health and education to improve  the  quality  of  human  resources  of  Indonesia's  population.  In  order  to improve     the  quality  of  human    resources    in  Indonesia    suggested    that  the government should also continue to run the program compulsory 9 (nine) years, and scholarships for children from poor families to achieve to improve the quality of their children. Keyword: Economic growth, poverty, unemployment, and investments]]>
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