Ekonomi Bisnis
Vol 16, No 1 (2011)

THE EFFECT OF DIRECT CASH AID (BLT) DISTRIBUTION TOWARD INCOME AND POVERTY LEVEL IN INDONESIA

Indra Maipita (Faculty of Economic, State University of Medan)

Article Info

Publish Date
03 Apr 2012

Abstract

This study is purposed to analyze the impact of fuel subsidy reduction policy followed by the award of compensation in the form of BLT to the poor on income distribution and poverty. Computable General Equilibrium (CGE), Foster-Greer-Thorbecke (FGT index) and betha density distribution function model analysis was used to achieve the goal. The results showed that the reduction in fuel subsidies, followed by the compensation of direct cash aid (BLT) to the poor households have an impact on increasing poverty, income inequality and poverty severity. In other words, the impact of direct cash aid (BLT) to the poor households is unable to offset the impact caused by the reduction in fuel subsidies.   Keywords: Subsidies, Direct Cash Aid (BLT), Income and Poverty

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Journal Info
Ekonomi Bisnis
Website

Abbrev

ekbis

Publisher

Universitas Gunadarma

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Jurnal Ilmiah Ekonomi Bisnis is a journal through a peer-review process. Jurnal Ilmiah Ekonomi Bisnis is intended for academics and researchers to publish their articles which is an original text that has not been published in another journal. The focus and scope are in the fields of management, ...