JRSSEM 2022, Vol. 02 No. 4, 533 – 543

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

10.36418/jrssem.v2i04.307 https://jrssem.publikasiindonesia.id/index.php/jrssem

DETERMINANTS OF POVERTY RATE IN EAST JAVA

PROVINCE IN 2018-2020

Rahma Ika Fitriana

Abstract: This study aims to determine the magnitude of the determinant effect of the poverty rate

in East Java in 2018-2020. This research is a study that uses secondary data obtained from the

Central Statistics Agency (BPS) published results. The data used includes Gross Regional Domestic

Product (GRDP), Open Unemployment Rate (TPT), population, and per capita income. The method

of data collection carried out is the study of documents. The document study itself has various

kinds of documents, one of which is a secondary document. Where in this document is taken from

INTRODUCTION

who are unaware of the poverty in their

environment. The argument is that the

people whose residences are in their rural

areas are poor compared to those in cities.

However, many people do not realize that

of the poor. As one of the magnitudes of

poverty is that it occurs a lot in urban areas.

Because if in urban areas, many people do

not have a place to live. For example, there

are many who still live in the river. Most of

them are people who do not have close

family and are confused if they want to ask

sispa for help. If it is in the countryside,

there are so many families or relatives who

Central Statistics Agency (BPS), we can find

out the percentage of poverty that exists in

all provinces of Indonesia. However, in the

data presented in the BPS, the poverty

percentage categories presented are only

by province while in an effort to eradicate

existing poverty, the government needs to

know which areas have high, medium, or

low poverty levels so that the government

can set a priority scale to overcome

poverty, because so far poverty alleviation

carried out by the government has not

been implemented optimally, because

there are still many poor empowerment

programs that have not been on target.

Development policies and various poverty

investment invested by both local and

foreign countries, at this time, cannot be

relied on to absorb labor. This is because

there is a use of sophisticated machines so

that it only slightly absorbs manpower. The

investment made will be better if it is labor-

intensive, so that it will increase job

opportunities for the population. Limited

job opportunities are one of the causes of

a person becoming poor because the

jobs, lack of social security and protection

for families, strengthening the flow of

urbanization, and worse, poverty has

caused millions of people to meet limited

food, clothing and shelter needs. Poverty,

causes people to be willing to sacrifice

anything for the safety of life, and receive

wages that are not commensurate with the

labor costs incurred.

East Java. One of them is the Gross Regional

Domestic Product. If the GRDP decreases, it

will affect the poverty rate, this is because

the amount of final added value of goods

and services will decrease. So the decrease

in the number of goods and services affects

the level of poverty.

unemployment rate, the number of

the economic process. This illustrates that

the dynamics of the development process

must be able to involve the entire labor

force then a large number of the labor force

it can be a burden for economic

development (Muslim, 2014).

in Indonesia are the level of urbanization,

the level of industrialization, the proportion

of the high school labor force and the

concept of forecasting.

economy shrinks. The coronavirus crisis has

strategies. In fact, many people have lost

their jobs due to covid-19. So that many

people build their own businesses and can

be successful in the present day.

The third factor is that a large

population if followed by adequate quality

is a reliable development capital, but if the

quality is low, it will actually become a

burden on development. Meanwhile, the

increasing number of people affects many

generation. The soaring burden of

financing the government budget will

obviously reduce the possibility and ability

of the government to improve the living

standards of generations and encourage

the transfer of poverty to future

generations who come from lower-middle-

income families (M Kumalasari, 2011).

The number of people here can be

interpreted as the densely populated area

again. So it is restricted to pregnant

programs so that the human population in

the region does not soar and the country

remains stable. If the population is stable

from income in a given year divided by the

number of inhabitants of a State in that

year. If people have high incomes or

salaries, people can support their lives and

save for their future costs. If people's

income decreases, it is difficult for that

community to make ends meet (EW Azizah,

2018).

namely the difficulty of finances of an area

or region. So they lack to support from their

families and cannot meet basic needs such

as clothing, food, and shelter. So people

must be able to process and manage their

income in order to get benefits in old age

and even arguably for the future.

MATERIALS AND METHODS

1. Data

find out how large the percentage

of the population is still below the

million rupiah).

data used to measure how many

unemployed people are

unemployed in East Java province

(in percentage terms).

income is according to the

2020 using the eviews 10 programs. The

districts in East Java province. In using this

panel data, there are many advantages

obtained in order to maximize the results of

the data obtained. One of them is being

able to know more information and be

more efficient. In the panel data, there are

several tests, namely the chow test and the

thirst test. Where in this test there are three

approaches, namely the common effect

model, fixed effect model, and random

whether a common effect or fixed effect

model is good is used. If common effects

are selected then it does not have to

proceed to the hausman test. But on the

contrary, if the selected model is fixed in

effect, it must conduct a hausman test.

Where in the hausman test is carried out to

find out whether a fixed effect model or a

good random effect method is used.

conclusion is that H0 is rejected, so the

test as follows:

10.36418/jrssem.v2i04.307 https://jrssem.publikasiindonesia.id/index.php/jrssem

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Panel Least Square (PLS) regression

equation is that the value of the constant

probability value (0.0694) is greater than

the alpha value of 0.05, so it is not

significant. Then for the value of the gross

regional domestic product coefficient

(GRDP) = -1.211040 which means that the

significant to the poverty rate. Then for the

value of the coefficient of the population

(PG) = 0.349996 which means that the

variable number of inhabitants (PG) the

probability value (0.2403) is greater than

the alpha value of 0.05, it is not significant

to the poverty level. Then for the value of

the coefficient of per capita income (PP) =

-0.021472 which means that the variable

per capita income (PP) probability value

upper Probability value is 0.0001 and the

coefficient is -1.211040 which shows that

the GRDP variable has a negative and

significant effect on the poverty rate in East

Java province because the Probability value

is smaller than alpha 0.05. So it can be

concluded that gross regional domestic

product or GRDP affects the poverty rate in

East Java province.

It can be known that this gross regional

domestic product affects the poverty rate

number of goods and services affects the

level of poverty.

Based on the value of GRDP in East

Java province, it can be evaluated that

GRDP is able to reduce the poverty rate

because if the GRDP value increases every

period, it will have a good impact on all

groups including the poor in East Java

province so as to reduce the poverty rate in

East Java province.

significant effect on the poverty rate in east

Java province because the Probability value

is smaller than alpha 0.05. So it can be

concluded that the Open Unemployment

Rate (TPT) affects the poverty rate in East

Java province.

an insurance guarantee then they will feel

protected in their lives.

the unemployed do not have guarantees

and insurance or social security. So that

unemployed person they will be willing to

do any job in order to live a decent life. So

an unemployed person is able to work for

just a few hours a week to fulfill his life.

the other is not working (unemployed) but

they have more income to support their

lives.

Effect of Population (PG) on Poverty Rate

upper Probability value is 0.2403 and the

coefficient is 0.349996 which shows that

the population variable (PG) has a positive

and insignificant effect on the poverty rate

does not affect the large level of poverty in

East Java. Due to the success of the family

planning (KB) program, it began to appear

or develop. So that the distribution of the

the poverty level in East Java province.

At this time the age of productive age

is considered ideal by most observers of

the social economy. Because this

productive age it is very dominating many

provide jobs in order to encourage

economic development in the province of

East Java. It is considered that at a

productive age they can develop their ideas

and be able to analyze and try new things.

the per capita income (PP) variable has a

negative and insignificant effect on the

poverty rate in East Java province because

the Probability value is greater than alpha

0.05. So it can be concluded that per capita

income (PP) does not affect the poverty

rate in East Java province.

Based on the results of this study, per

capita income is not significant or does not

affect the poverty rate in the province of

determining a society's prosperity. Where

this per capita income is derived from the

opinion of tons in a given year divided by

the number of inhabitants of a country in

provide for their lives.

income is used to measure indicators of the

level of progress or the level of well-being

of the population of a region.

CONCLUSIONS

carried out, the following conclusions can

be drawn: