Village funds and poverty reduction in South Sumatra: A geographically weighted regression analysis

Sukanto Sukanto (Department of Economic Development, Faculty of Economics, Universitas Sriwijaya)
Suwardi Suwardi (South Sumatra Regional Office of the Directorate General of Treasury, Ministry of Finance, Indonesia)
Muhammad Ferdy Oktavianto (South Sumatra Regional Office of the Directorate General of Treasury, Ministry of Finance, Indonesia)

Optimum: Jurnal Ekonomi dan Pembangunan
Vol. 16 No. 2 (2026)

Poverty alleviation is the main agenda of development programs in Indonesia. Most of the implemented programs are non-spatial in nature and thus not yet optimal. This study looks into spatial patterns and area-based approaches to reducing poverty in South Sumatra Province. The geographically weighted regression (GWR) method using poverty data from 2022-2024 was employed in this study. The study finds an assembled spatial poverty pattern where areas (sub-districts) with high poverty levels are surrounded by regions with high poverty levels. Therefore, the poverty alleviation strategy of each region is aligned with each influencing factor.