Analysis of the Impact of Human Capital and Local Government Budget (Social Assistance) on Poverty Levels in Indonesia from 2013 to 2023

Sonia Br Ginting; M. Taufiq; Wirya Wardaya

doi:10.47134/jmsd.v3i1.860

Authors

Sonia Br Ginting Universitas Pembangunan Nasional “Veteran” Jawa Timur
M. Taufiq Universitas Pembangunan Nasional “Veteran” Jawa Timur
Wirya Wardaya Universitas Pembangunan Nasional “Veteran” Jawa Timur

DOI:

https://doi.org/10.47134/jmsd.v3i1.860

Keywords:

Human Capital, Poverty Rate, Average Years of Schooling, Life Expectancy, APBD

Abstract

This study aims to analyze the effect of human capital and APBD (social assistance) on poverty levels in Indonesia during the period 2013–2023. Human capital is measured through three main variables: average years of schooling, life expectancy, and social assistance spending in the Regional Government Budget (APBD). This research uses a quantitative approach with panel data regression, analyzing 10 provinces with the highest poverty rates. The results show that average years of schooling and life expectancy have a negative and significant effect on poverty, indicating that improvements in education and health contribute to reducing poverty levels. Meanwhile, social assistance spending through APBD does not have a significant effect on poverty. This suggests that social spending has not been effective in reducing poverty, possibly due to ineffective targeting. These findings emphasize the importance of improving human capital and evaluating the effectiveness of social assistance programs.

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