POVERTY REDUCTION IN INDONESIA: OBSTACLES AND SOLUTIONS

Abstract:

The poverty rate in Indonesia is diminishing by time, where the percentage continues to fall slowly from 2006 till 2014. In 2006 the poverty rate was in the range of 17.8% or a total of 39 million people, to the range of 11% or 28 million people in 2014. President Jokowi’s current government continues to promote poverty redduction programs which are divided into three clusters, namely family based social assistance programs, poverty reduction programs based on community empowerment and poverty reduction based on economic empowerment of small and micro enterprises. However, Indonesian poverty reduction programs still face a variety of obstacles so that the goals have not been achieved fully. This paper tries to give some suggestions regarding how to improve the poverty reduction programs to be more effective The suggestions are to standardize the definition and calculation of poverty, to focus on agriculture development, improving the distribution and dissemination of the “cards” used in poverty reduction programs and a strict control over the use of poverty reduction?s budget which is spread in the various Ministry and Institutions of Indonesia. +C37

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