<![CDATA[Poverty in Indonesia remains a significant socio-economic challenge with notable regional disparities. The eastern provinces, particularly Papua, Maluku, and East Nusa Tenggara, experience persistently high poverty rates, suggesting a strong spatial influence. This study examines the spatial distribution of poverty using the Local Indicators of Spatial Association and the Spatial Error Model with 2024 data from the Indonesian Central Statistics Agency (BPS) for 38 provinces. The analysis employs a K-Nearest Neighbors weighting matrix (k = 10) for spatial dependencies. The LISA results identify High-High poverty clusters in Papua, Maluku, and East Nusa Tenggara. In contrast, Low-Low clusters are concentrated in Java and Bali, indicating a strong spatial pattern (Moran’s I = 0.4448). SEM findings reveal that the Gini index (β = 29.97) and population density (β = 0.016) significantly influence poverty, whereas inflation and total population do not. The model explains 76.1% of poverty variance (R² = 0.760966), highlighting its superiority over traditional regression models. These findings underscore the need for spatially adaptive policies to address poverty effectively. Policymakers should prioritize equitable economic development, regional investment, and infrastructure improvements, particularly in high-poverty clusters. Integrating spatial econometric models with KNN provides deeper insights into interregional disparities, supporting more precise and inclusive development strategies]]>
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