DETERMINANTS OF POVERTY IN THE JAVA-BALI REGION, 2017–2024

Abstrak

While the Java-Bali region serves as the epicenter of national economic growth, interprovincial poverty and inequality remain unresolved challenges. This study aims to analyze the impact of economic growth, the Gini index, HDI, and the ICT development index on poverty across seven provinces in the Java-Bali region, and to identify the variable with the most dominant influence. A quantitative approach with a causal analysis design was employed in this study. The research sample consists of 7 provinces in the Java-Bali region observed over the period of 2018–2024, generating a panel dataset. The secondary data were collected through documentation techniques from the official publications of Statistics Indonesia (BPS). The data analysis technique utilized panel data regression analysis with the Fixed Effect Model (FEM) framework. The results indicate that, collectively, all independent variables have a significant impact on poverty. Individually, economic growth has a significant negative effect and the Gini index has a significant positive effect, while HDI and the ICT development index do not exhibit a significant impact, with the Gini index emerging as the most dominant variable. Consequently, it can be concluded that efforts to alleviate poverty in the Java-Bali region would be more effective if focused on income redistribution policies to narrow the economic inequality gap.