Exploring the Drivers of Poverty: A Comprehensive Review of Influential Factors

Ni Nengah Yuni Widya Pratiwi (Program Studi Ilmu Ekonomi Studi Pembangunan, Fakultas Ekonomi dan Bisnis, Universitas Mataram, Indonesia)
Bala Ram Acharya (Ratnarajya Laxmi Campus, Tribhuvan University, Nepal)
Abdulbasit Kolapo Imam (Department of Politics and Governance, Faculty of Humanities, Management and Social Sciences, Kwara State University, Malete, Nigeria)
Tamara Franchuk (Department of Software Engineering and Cybersecurity of State University of Trade and Economics, Kyiv, Ukraine)
Ngwang Ngoongeh Norbert (Department of Agribusiness Technology, College of Technology, University of Bamenda, Bamenda, Cameroon)
Ranj Tahir Abdullah (6 International Commerce Department, College of Commerce, University of Sulaimani, Iraq)
Mugaahed Saleh (Department of Management Studies and Research, Kuvempu University, Shimoga, Karnataka, India)

Indonesian Development Economics and Localities
Vol. 1 No. 1 (2025): January-June

Poverty remains a complex and profound issue impacting both individual well-being and national economic development. In Indonesia, despite numerous initiatives by the government, academia, and non-governmental organizations, poverty persists at significant levels. This literature review aims to provide a comprehensive analysis of the factors influencing poverty rates in Indonesia. Key factors identified include population growth, education, and minimum wages. Population growth can exacerbate poverty if not matched by economic and social support. Education plays a crucial role in enhancing skills and employment opportunities, thereby alleviating poverty. Minimum wages are also pivotal in ensuring that workers can meet their basic needs. This review synthesizes findings from various studies to offer insights into how these factors interact and influence poverty levels. A thorough understanding of these dynamics is essential for developing more effective and sustainable poverty alleviation strategies. The methodology employed is a literature review, which systematically evaluates existing research to identify patterns, gaps, and potential solutions for addressing poverty in Indonesia.