The Realization of Village, Education, and Health Funds to Reduce Poverty in Eastern Indonesia
Abstract
Village funds are used to improve the welfare of rural communities and develop various regions in Indonesia, including the 3T (frontier, remote, and disadvantaged) areas in Eastern Indonesia. Therefore, this study uses the Panel Least Square method to see the consequence of village, education, and health funds on poverty levels, especially in 7 provinces in Eastern Indonesia using yearly data 2017-2022. The realization of village funds, education funds, and health funds are used as independent variables, while the percentage of poor people is used as a dependent variable. The study results show that village fund and health fund significantly reduce poverty rates in Eastern Indonesia. Meanwhile, the education fund did not significantly reduce poverty in Eastern Indonesia. Although village and health funds can reduce poverty in Eastern Indonesia, the government should prioritize improving the education level of the region's people to significantly alleviate poverty.
References
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Xie, Xiaowen, Saran Sarntisart, and Md. Nasir Uddin. 2023. “The Impact of Education Investment on Regional Poverty Alleviation, Dynamic Constraints, and Marginal Benefits: A Case Study of Yunnan’s Poor Counties.” Economies 11(2): 42. doi:10.3390/economies11020042.
Aurelya, Tasya, Nurhayati Nurhayati, and Samuel Fery Purba. 2022. “Pengaruh Kondisi Sektor Kesehatan Terhadap Pertumbuhan Ekonomi Di Indonesia.” Jurnal STEI Ekonomi 31(02): 83–92. doi:10.36406/jemi.v31i02.752.
Awan, Masood Sawar, Nouman Malik, Haroon Sawar, and Muhammad Waqas. 2011. “Impact of Education on Poverty Reduction.” International Journal of Academic Research 3(1): 659–64. https://www.researchgate.net/publication/215867059.
Bloom, David E, and David Canning. 2008. Population Health and Economic Growth Commission on Growth and Development. www.growthcommission.orgcontactinfo@growthcommission.org.
Dhiya, A., Kathya, K., & Mingshen, M. (2021). Endogenous Growth Theory: The Impact of government expenditures in education and health on the economy. Jurnal Keuangan dan Anggaran Negara Indonesia, 3(1), 20-38.
Directorate General of Financial Balance. 2018. 2 Buku Pintar Dana Desa: Dana Desa Untuk Kesejahteraan Rakyat.
Directorate of Primary Schools (Direktorat Sekolah Dasar). 2019. “Majalah Sekolah Dasar Cerdas Berkarakter: Rembuk Bersama Para Pemangku Kepentingan.” Direktorat Pembinaan Sekolah Dasar, Direktorat Jendral Dikdasmen Kemendikbud: 1–74.
Ernawati, Ernawati, Tajuddin Tajuddin, and Syamsir Nur. 2021. “Does Government Expenditure Affect Regional Inclusive Growth? An Experience of Implementing Village Fund Policy in Indonesia.” Economies 9(4). doi:10.3390/economies9040164.
Ghozali, Imam. 2018. Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25. Semarang: Badan Penerbit Universitas Diponegoro.
Haile, Fiseha, and Miguel Niño‐Zarazúa. 2018. “Does Social Spending Improve Welfare in Low‐income and Middle‐income Countries?” Journal of International Development 30(3): 367–98. doi:10.1002/jid.3326.
Handra, H. (2022). Analisis Kebijakan Dampak Dena Desa Terhadap Kemiskinan, Perekonomian, Pengangguran, dan Pelayanan Publik Periode 2015-2019. Jakarta: Kompak.
Madi, Haifa Husni, and Jaffar Syed Hussain. 2007. “The Role of Health Promotion in Poverty Reduction.” Eastern Mediterranean Health Journal 13(6): 1249–55.
Mahmud, Amir, Dedy Prayogo, Nurdian Susilowati, Bestari Dwi Handayani, and Mardi Mardi. 2023. “Analyzing the Effects of System Quality on the Net Benefits of the Village Financial System (Siskeudes): Information Quality and User Satisfaction as Mediating Variables.” MANAGEMENT AND ACCOUNTING REVIEW 22(1): 105–27.
Manurung, Elizabeth T., Sylvia F.E. Maratno, Paulina Permatasari, Arif B. Rahman, Reifa Qisthi, and Elvy M. Manurung. 2022. “Do Village Allocation Funds Contribute towards Alleviating Hunger among the Local Community (SDG#2)? An Insight from Indonesia.” Economies 10(7). doi:10.3390/economies10070155.
Nawawi, Juanda, Muhammad Tamar, and Sakaria Anwar. 2021. Analysis of The Utilization of Village Fund In Poverty Alleviation in Wajo Regency During The Covid-19 Pandemic.
Rammohan, Anu, and Achmad Tohari. 2023. “Rural Poverty and Labour Force Participation: Evidence from Indonesia’s Village Fund Program.” PLoS ONE 18(6). doi:10.1371/journal.pone.0283041.
Rangongo, Mamoloko F, and Collins C Ngwakwe. 2019. “Human Capital Investment and Economic Growth: A Test of Endogenous Growth Theory in Two Developing Countries.” Acta Universitatis Danubius.Oeconomica 15(1): 92–107.
Sandjaja, Ferensky Regina, Ferinda Nafisa, and Ita Nurmanti Manurung. 2020. “The Impact of Fiscal Decentralization on Welfare in Selected Provinces in Indonesia.” Jurnal Bina Praja 12(1): 21–31. doi:10.21787/jbp.12.2020.21-31.
Saragi, Novita Briliani, M.R. Muluk, and I Gede Eko Putra Sri Sentanu. 2021. “Indonesia’s Village Fund Program: Does It Contribute to Poverty Reduction?” Jurnal Bina Praja: 65–80. doi:10.21787/jpb.13.2021.65-80.
Sigit, Tri Angga, and Ahmad Kosasih. 2020. “Pengaruh Dana Desa Terhadap Kemiskinan: Studi Tingkat Kabupaten/Kota Di Indonesia.” Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik 5(2): 105–19.
Suharno, Suprih Handayani, and Lilis Siti Badriah. 2022. “The Effectiveness of Local Government Spending on Poverty Rate Reduction in Central Java, Indonesia.” EKO-REGIONAL 17(1): 1–8. doi:10.20884/1.erjpe.2022.17.1.1848.
Taruno, Hendrawan Toni. 2019. “Public Spending and Poverty Reduction in Indonesia: The Effects of Economic Growth and Public Spending on Poverty Reduction in Indonesia 2009-2018.” The Indonesian Journal of Planning and Development 4(2): 49–56. doi:10.14710/ijpd.4.2.49-56.
Xie, Xiaowen, Saran Sarntisart, and Md. Nasir Uddin. 2023. “The Impact of Education Investment on Regional Poverty Alleviation, Dynamic Constraints, and Marginal Benefits: A Case Study of Yunnan’s Poor Counties.” Economies 11(2): 42. doi:10.3390/economies11020042.
Published
2024-09-02
How to Cite
TAMBA, Helena Louisa Andriani et al.
The Realization of Village, Education, and Health Funds to Reduce Poverty in Eastern Indonesia.
Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah, [S.l.], v. 19, n. 2, p. 128 - 141, sep. 2024.
ISSN 2620-8849.
Available at: <https://jos.unsoed.ac.id/index.php/er/article/view/15032>. Date accessed: 07 apr. 2025.
Section
Articles
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