IIJSE
Vol 9 No 2 (2026): Sharia Economics

Analysis of the Effectiveness of Government Social Programs in Reducing Poverty in Central Java During the 2021–2023 Period

Rettya Ayu Amanda (Universitas Muhammadiyah Surakarta, Surakarta, Indonesia)
Yuni Prihadi Utomo (Universitas Muhammadiyah Surakarta, Surakarta, Indonesia)



Article Info

Publish Date
03 Oct 2026

Abstract

Using panel observations from 35 regencies and municipalities across Central Java, this quantitative investigation evaluates whether major public social assistance initiatives contributed to poverty alleviation between 2021 and 2023. The assessment encompasses Program Keluarga Harapan (PKH), BPJS, Program Indonesia Pintar (PIP), Bantuan Pangan Non-Tunai (BPNT), together with Kartu Keluarga Sejahtera (KKS). Empirical estimation relies exclusively on secondary datasets compiled by Statistics Indonesia (BPS) and the Ministry of Primary and Secondary Education. Three alternative panel regression specifications Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM) are estimated before statistical model selection is determined through the Chow, Hausman, and Lagrange Multiplier procedures. Comparative testing ultimately identifies the Fixed Effect Model (FEM) as the specification providing the most appropriate representation. The findings show that PKH, BPJS, and PIP have a negative and statistically significant effect on poverty, indicating that these programs effectively reduce poverty levels. In contrast, BPNT and KKS do not show a significant effect on poverty reduction. Overall, the results suggest that social assistance programs focused on education and health are more effective in alleviating poverty compared to consumption-based assistance programs.

Copyrights © 2026






Journal Info

Abbrev

iijse

Publisher

Subject

Economics, Econometrics & Finance

Description

The Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) is Sharia Economics Journal published by Sharia Economics Department Institut Pesantren KH. Abdul Chalim, Mojokerto. The Journal focuses on the issues of Sharia Economics, the History of Islamic Economic Thought, Islamic Law, Local ...