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The effect of rural development in reducing the poverty gap and economic growth has not been much analyzed in recent studies. This study examines the effects of rural development (as calculated by using the Village Development Index, VDI) on poverty and economic growth. Precisely, poverty is measured by the depth of poverty (as measured by Poverty Gap Index, P1) and poverty severity (as measured by Poverty Severity Index, P2) using the aggregate data at the district level in Indonesia. Understandably, many factors influence the effort to reduce the poverty gap in rural areas, and it can be started by improving rural economic development. The result of this study indicates that regions with the VDI categorized as “self-sufficient” and “developed” villages have the potential to reduce the depth of poverty and poverty severity in its areas and to increase economic growth. In contrast, underdeveloped and very underdeveloped regions in their VDI category experienced a more significant gap in the depth and severity of the poverty. This result implies that the Indonesian government must accelerate and improve the development of rural areas, especially in less developed regions. Thus, a better rural development status will attract more opportunities to grow rural economic activities and improve the community welfare.

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This research aims to assess the impact of conditional cash transfer (PKH) program on infant welfare. The poor people usually treated their babies inadequately due to of lack of resources. Government intervention by social protection program is expected to contribute to increase infant welfare. Infant welfare determines their quality of future life, and to some extent will determine the quality of human resources in a country. This research uses two micro data set which are Indonesia family life survey (IFLS) 4 and 5. The method is using econometrics with difference-in-differences (DiD) model to measure impact of the CCT program. Then, this research reveals that CCT (PKH) program is significantly positive affected to infant health status by 1.02% with OLS (2.39% using odered-probit and 4.38% using ordered-logit). However, the CCT program is insignificantly affected to increase infant weight. As a result, CCT program has just contributed to increase the infant welfare by increasing health status. By the result, the program should need to be improved and extended for beneficiaries in the future. By improving and extending program, the infant welfare will increase by health status indicator By this research, we can see how the significance of the program is contributed to the quality of Indonesia’s human resources by improving infant health status.Abstrak Penelitian ini bertujuan untuk mengukur dampak program keluarga harapan (CCT) terhadap kesejahteraan bayi. Masyarakat kurang mampu sering kali tidak mampu merawat bayinya dengan baik. Intervensi pemerintah melalui PKH/CCT diharapkan mampu meningkatkan kesejahteraan bayi. Kesejahteraan bayi menentukan kualitas hidupnya dimasa depan, dan akan menentukan kualitas sumber daya manusia pada suatu negara. Penelitian ini menggunakan dua periode data mikro Indonesia family life survey (IFLS) 4 dan 5. Metode penelitian yang digunakan dalam penelitian ini ialah dengan ekonometrika menggunakan model difference-in-differences untuk mengukur dampak program PKH. Berdasarkan hasil perhitungan, penelitian ini menunjukkan bahwa program PKH berdampak positif terhadap status kesehatan bayi sebesar 1,02% dengan OLS (2,39% dengan ordered-probit, dan 4,38% dengan ordered-logit). Namun, program PKH tidak signifikan memengaruhi berat badan bayi. Maka, program PKH telah mampu berdampak positif melalui peningkatan status kesehatan bayi. Berdasarkan hasil tersebut, keberadaan program PKH seharusnya perlu untuk ditingkatkan dan diperluas penerima manfaatnya. Melalui peningkatan dan perluasan manfaat, maka program akan secara langsung berdampak pada peningkatan status kesehatan bayi. Hasil penelitian ini juga menunjukkan bahwa kita dapat melihat bagaimana signifikasi dari program dalam berkontribusi meningkatkan kualitas sumber data manusia melalui peningkatan status kesejahteraan bayi.