The Effect of Rural Development on Poverty Gap, Poverty Severity and Local Economic Growth in Indonesia

Handoyo, Felix Wisnu; Hidayatina, Achsanah; purwanto, purwanto

doi:10.21787/jbp.13.2021.369-381

Cited by 13 publications

(15 citation statements)

References 27 publications

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“…This increase could be used more for economic recovery, which still requires a lot of financial support through the Village BLT program, or maybe it can also be used to increase infrastructure development because most of these areas are located in the eastern part of Indonesia, which still lags behind other regions. Increasing the development of rural areas, especially in disadvantaged areas, must be accelerated to reduce the depth and severity of poverty in the region (Handoyo et al, 2021).…”

Section: Resultsmentioning

confidence: 99%

The Relationship of Village Funds With Village Economic Development: A Village Level Study in Indonesia

Yusuf

Khoirunurrofik

2022

J. Bina Praja

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The Village Fund Program is a manifestation of fiscal decentralization in Indonesia, which is intended to support equitable development and increase community welfare. The village government has the authority to plan the use of the Village Fund and to spend it concerning regulations from the central government. The use of the Village Fund needs to be evaluated to determine whether the funds have been spent properly and to support the village's economic development. This study aims to identify Village Fund program activities that can affect village economic development and determine regional priorities in utilizing Village Funds for village development in the economic field. The analysis was conducted using a qualitative approach by mapping and tagging Village Fund expenditures. The mapping and tagging aim to ensure that Village Fund spending follows the mandate and to know the composition of the share of economic spending in each region. The results showed that: (1) the utilization of the Village Fund was following the applicable priority guidelines for the use of the Village Fund; (2) the share of economic spending in the eastern part of Indonesia is lower than in other regions, but the trend is constantly rising, while the share of economic spending in the islands of Java and Bali shows a higher number. Based on the research results, this study suggests that villages in disadvantaged areas prioritize Village Fund spending for infrastructure improvement and regional openness to increase village progress or independence.

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Section: Resultsmentioning

confidence: 99%

The Relationship of Village Funds With Village Economic Development: A Village Level Study in Indonesia

Yusuf

Khoirunurrofik

2022

J. Bina Praja

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“…So, Pangkalpinang City Government needs to conduct a study to increase the contribution of Regional Revenue to the Regional Budget. Research results (Handoyo et al, 2021) found that regions with higher self-reliance will find it easier to overcome and reduce poverty levels. Therefore, the Pangkal Pinang City Government needs to increase its independence in financing the Regional Budget because it has a broad impact (Tan, 2020).…”

Section: Introductionmentioning

confidence: 95%

The Mapping of Regional Tax and Levy in Pangkalpinang

et al. 2022

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Regional autonomy provides opportunities and challenges for Regional Governments to manage and explore sources of Regional Revenue. As the Capital of the Province, Pangkalpinang still relies on transfers, fund and yet their regional revenue is very low. This study tries to identify and map tax and levy revenues in Pangkalpinang and then formulate strategic recommendations that the Government may consider increasing regional revenue. This study analyzes the effectiveness, contribution, and growth of regional tax and retribution revenue in Pangkalpinang between 2016 and 2020. The contribution and growth analysis results are the basis for the Klassen analysis. This study's results indicate that tax revenue's effectiveness in the Pangkalpinang rate is 114.54%, while the effectiveness of retribution is 96.61%. The regional tax revenue with the largest contribution is street lighting tax, which contributes 36.49%. In contrast, the largest contribution of retribution is the revenue from the use of regional wealth, which is 25.05%. Based on Klassen's analysis, knowing that four sectors are in the developing category, four sectors are in the advanced but depressed category, five sectors are in the potential category, and the remaining nineteen sectors are in the lagging category. Therefore, the researcher suggests that the Government focus on developing and developing depressed sectors if they want to increase local tax and retribution revenues in the short term. However, they must focus on developing potential sectors if they're going to increase regional tax and levy revenues long-term.

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“…This finding follows Kakwani and Son (2003), who state that poverty reduction can be achieved by increasing economic activity. It is more due to increasing the involvement of the poor in economic act (Handoyo et al, 2021).…”

Section: B the Nexus Between Village Funds And Other Variables Toward...mentioning

confidence: 99%

Village Funds and Resilience in Rural Areas: Evidence from Indonesia Post-Covid Pandemic

Imam¹,

Januari²

2022

JEFMS

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This research strives to prove whether village funds can effectively increase resilience in rural areas in the post-pandemic period, especially in alleviating rural poverty. There are two objectives in this study, namely: (i) to estimate the impact of village funds on poverty levels in rural areas; and (ii) to identify factors that influence growth. The Year 2021 is assumed to be the post-pandemic period because of improvement in economic growth. The analytical model applied in this research is three-stage least squares (3sls). This study has two endogenous variables: economic growth and poverty in rural areas. The results showed no effect of village funds on rural poverty. In addition, village funds have also not affected economic growth. The policy of refocusing the use of village funds in overcoming the covid pandemic is thought to be the most potent cause of the absence of village funds on poverty and economic growth.

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The Effect of Rural Development on Poverty Gap, Poverty Severity and Local Economic Growth in Indonesia

Cited by 13 publications

References 27 publications

The Relationship of Village Funds With Village Economic Development: A Village Level Study in Indonesia

The Relationship of Village Funds With Village Economic Development: A Village Level Study in Indonesia

The Mapping of Regional Tax and Levy in Pangkalpinang

Village Funds and Resilience in Rural Areas: Evidence from Indonesia Post-Covid Pandemic

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