Poverty Reduction in Regencies/Municipalities in South Sumatra Province
Society Volume 8 Issue 2#2020
PDF (English)
PDF (Bahasa Indonesia)

Keywords

Capital Expenditure;
Local Government;
Local Revenue;
Poverty Reduction;
Social Assistance Expenditure

View Counter


  • Abstract viewed - 152 times
  • PDF (English) downloaded - 110 times
  • PDF (Bahasa Indonesia) downloaded - 59 times

Search in:

| |

How to Cite

Rohima, S., Liliana, L., & Putri, A. (2020). Poverty Reduction in Regencies/Municipalities in South Sumatra Province. Society, 8(2), 581-595. https://doi.org/10.33019/society.v8i2.215
Received 2020-07-27
Accepted 2020-10-12
Published 2020-12-30

Funding data

  • Universitas Sriwijaya
    Grant numbers 3263/UN9.FE/TU.SK/2019. Competitive Grant Research funded by the Faculty of Economics, Universitas Sriwijaya through the 2019 Non-Tax State Revenue Fund based on the Decree of the Dean of the Faculty of Economics, Universitas Sriwijaya

Abstract

Local Government expenditure is budgeting for all government needs and activities and managed under the authority of provinces, regencies, and municipalities through their respective regional heads. Well-targeted Local Government expenditure optimization has a significant impact on the regional economy. This research aims to determine poverty reduction in regencies/municipalities in South Sumatra Province, Indonesia, by examining the variable’s impact of social assistance expenditure, capital expenditure, and local revenue on poverty. The data used are primary and secondary data obtained from 15 regencies/municipalities in South Sumatra Province during the 2010-2018 periods. The analysis technique uses in this research were Poverty Mapping with Klassen Typology and Multiple Linear Regression (MLR). Using the Klassen typology for poverty mapping in South Sumatra Province obtained four regional classifications (quadrant) based on poverty and economic growth: quadrant I (developed and fast-growing region), quadrant II (developed but depressed region), quadrant III (developing region), and quadrant IV (less developed region). The Klassen typology classification results: quadrant I include Palembang City, quadrant II includes Musi Banyuasin Regency, Muara Enim Regency, Ogan Komering Ilir Regency, and Banyuasin Regency. Quadrant III includes Ogan Komering Ulu Regency, Prabumulih City, and Lubuk Linggau City. Also, quadrant IV includes Lahat Regency, Musi Rawas Regency, Ogan Ilir Regency, Ogan Komering Ulu Timur Regency, Ogan Komering Ulu Selatan Regency, Empat Lawang Regency, and Pagar Alam City. The t-test regression results showed that Social assistance expenditure and local revenue affect poverty reduction, while capital expenditure does not significantly affect poverty reduction. The F-test regression results showed that poverty reduction was affected simultaneously by social assistance expenditure, capital expenditure, and local revenue. Policies in social assistance expenditure and capital expenditure were not well-targeted. The policies expected to reduce poverty are to provide well-targeted social assistance expenditure and capital expenditure.

DOI : https://doi.org/10.33019/society.v8i2.215
PDF (English)
PDF (Bahasa Indonesia)

References

Adiguno, R., Sihombing, L., & Hutajulu, A. T. (2014). Analisis Akses Pangan di Provinsi Sumatera Utara. Journal of Agriculture and Agribusiness Socioeconomics, 3(6). Retrieved from https://jurnal.usu.ac.id/index.php/ceress/article/view/8217

Akhmad, Alyas, & Amir. (2018). The Effect of Economic Growth and Income Inequality on Poverty in Indonesia. IOSR Journal of Economics and Finance, 9(4), 20–26. Retrieved from http://www.iosrjournals.org/iosr-jef/papers/Vol9-Issue4/Version-2/D0904022026.pdf

Anita, N., & Aprilianto, R. A. (2017). Analysis of Effect of Local Own Source Revenue and Government Spending on Economic Development in the Tegal Regency. Governance Theory and Practices in Asia Pasific (International Conference on Public Organization VII 2017), 1080–1095. Sumedang, Indonesia. Retrieved from http://apspa.org/wp-content/uploads/2018/02/Proceeding-ICONPO-VII-2017.pdf

Anwar, A. (2017). Peran Modal Manusia Terhadap Pertumbuhan Ekonomi Regional Di Jawa. Jurnal Economia, 13(1), 79–94. https://doi.org/10.21831/economia.v13i1.13323

Arndt, C., & Tarp, F. (2016). Measuring Poverty and Wellbeing in Developing Countries. Oxford, United Kingdom: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780198744801.001.0001

Azwar, A. (2016). Peran Alokatif Pemerintah melalui Pengadaan Barang/Jasa dan Pengaruhnya Terhadap Perekonomian Indonesia. Kajian Ekonomi dan Keuangan, 20(2), 149-167. Retrieved from https://fiskal.kemenkeu.go.id/ejournal/index.php/kek/article/view/186

Badan Pusat Statistik Provinsi Sumatera Selatan. (2016, July). Provinsi Sumatera Selatan Dalam Angka 2016 (Nomor Publikasi 16560.1601). Retrieved from https://sumsel.bps.go.id/publication/2016/07/15/9a08ff7c004f9d0aed0f9243/provinsi-sumatera-selatan-dalam-angka-2016.html

Badan Pusat Statistik Provinsi Sumatera Selatan. (2019, August). Provinsi Sumatera Selatan Dalam Angka 2018 (Nomor Publikasi 16560.1901). Retrieved from https://sumsel.bps.go.id/publication/2019/08/16/2538e50f10441c67e0860a73/provinsi-sumatera-selatan-dalam-angka-2019.html

Badrudin, R., & Kuncorojati, I. (2017). The effect of district own-source revenue and balance funds on public welfare by capital expenditure and economic growth as an intervening variable in Special District of Yogyakarta. Jurnal Manajemen Dan Kewirausahaan, 19(1), 54–59. https://doi.org/10.9744/jmk.19.1.54-59

Bisnis.com. (2019, February 6). Pertumbuhan Ekonomi Sumsel 2018 6,04% Masih di Atas Nasional. Retrieved from https://sumatra.bisnis.com/read/20190206/534/885932/pertumbuhan-ekonomi-sumsel-2018-604-masih-di-atas-nasional

Darmawan, M. J., & Tukiman, T. (2020). Analisis Dimensi Ketimpangan Pembangunan Antar Wilayah Di Provinsi Jawa Timur Tahun 2014-2018. Dinamika Governance: Jurnal Ilmu Administrasi Negara, 10(1), 41-53. Retrieved from http://www.ejournal.upnjatim.ac.id/index.php/jdg/article/view/2045

Das, S., Mourmouras, A., & Rangazas, P. (2018). Economic Growth and Development: A Dynamic Dual Economy Approach (2nd ed. 2018 ed.). Cham, Switzerland: Springer. https://doi.org/10.1007/978-3-319-89755-4

Delen, D., Pudjiharjo, P., & Susilo, S. (2019). Has Fiscal Decentralization Succeeded in Increasing Quality Economic Growth in East Java? Jurnal Bina Praja, 11(1), 15–29. https://doi.org/10.21787/jbp.11.2019.15-29

Felix, O. (2011). Analysis of the effectiveness of capital expenditure budgeting in the local government system of Ondo State, Nigeria. Journal of Accounting and Taxation, 4(1), 1-6. Retrieved from https://academicjournals.org/journal/JAT/article-abstract/2F1A0E41096

Idris, I., Fajrillah, N., Yasin, H., Harahap, A. K., Rahmat, J. S., Susanti, M., & Dania, I. A. (2019). Analysis of Performance Realization of Government Regional Income and Expenditure Budget in Medan City. Middle-East Journal of Scientific Research, 27(2), 101-105. Retrieved from https://www.idosi.org/mejsr/mejsr27(2)19/3.pdf

Ismail, A., & Hakim, A. (2014). Peran Dana Perimbangan Terhadap Kemiskinan Di Provinsi Bali. Jurnal Aplikasi Bisnis, 16(9), 2168–2186. https://doi.org/10.20885/jabis.vol16.iss9.art8

Junita, A., Abubakar, E., & Abdullah, S. (2018). The Effect of Budget Variances on the Local Government Budget Changes with Legislature Size as Moderator. Academic Journal of Economic Studies, 4(1), 162–173.

Katadata.co.id. (2019, July 29). Inilah Provinsi dengan PDRB per Kapita Tertinggi di Sumatera. Retrieved from https://databoks.katadata.co.id/datapublish/2019/07/29/inilah-provinsi-dengan-pdrb- per-kapita-tertinggi-di-sumatera

Kementerian Keuangan Republik Indonesia. (2014, October 15). Budget in Brief APBN 2015. Retrieved from http://www.anggaran-old.kemenkeu.go.id/dja/acontent/bibfin.pdf

Korompot, R., & Warongan, J. (2017). Analysis of Financial Performance in the Government of North Sulawesi. Jurnal Accountability, 6(2), 9–19. https://doi.org/10.32400/ja.17755.6.2.2017.9-19

Kuncoro, M. (2018). Perencanaan Pembangunan Daerah: Teori dan Aplikasi. Jakarta, Indonesia: Gramedia Pustaka Utama.

Lestari, S., & Utama, M. S. (2019). The Effect of Local Government Own Revenue and Revenue Sharing Funds on Economic Performance and Community Welfare Through Capital Expenditure of Regency/City in Bali Province, Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 91(7), 67–87. https://doi.org/10.18551/rjoas.2019-07.08

Ludi, E., & Bird, K. (2007). Understanding Poverty (Brief No 1). Swiss Agency for Development and Cooperation. Retrieved from https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/5678.pdf

Mun’im, A. (2012). Analisis Pengaruh Faktor Ketersediaan, Akses, dan Penyerapan Pangan Terhadap Ketahanan Pangan di Kabupaten Surplus Pangan: Pendekatan Partial Least Square Path Modeling. Jurnal Agro Ekonomi, 30(1), 41–58. https://doi.org/10.21082/jae.v30n1.2012.41-58

Nasution, A. (2017). The government decentralization program in Indonesia. In N. Yoshino & P. J. Morgan (Eds.), Central and Local Government Relations in Asia: Achieving Fiscal Sustainability (ADBI Series on Asian Economic Integration and Cooperation ed., pp. 276–305). Cheltenham, United Kingdom: Edward Elgar Publishing. https://doi.org/10.4337/9781786436870.00017

Nilawati, E. (2019). Analisis dan Strategi Peningkatan Pendapatan Asli Daerah (PAD) di Kabupaten Gunungkidul. Jurnal Maksipreneur: Manajemen, Koperasi, Dan Entrepreneurship, 9(1), 41–60. https://doi.org/10.30588/jmp.v9i1.469

Omodero, C. O. (2019). Government Sectoral Expenditure and Poverty Alleviation in Nigeria. Research in World Economy, 10(1), 80–90. https://doi.org/10.5430/rwe.v10n1p80

Rohima, S. (2018). Development Inequality of District/City in South Sumatra (2008-2015). AFEBI Economic and Finance Review, 3(01), 42–55. https://doi.org/10.47312/aefr.v3i01.146

Sasti, I. A. T. P., & Latrini, M. Y. (2019). Pengaruh Alokasi Belanja Operasi dan Belanja Modal pada Indeks Pembangunan Manusia. E-Jurnal Akuntansi, 26(2), 1632-1659. https://doi.org/10.24843/eja.2019.v26.i02.p29

Sijabat, R. (2017). Do Productive Government Expenditures Affect Economic Growth? Evidence from Provincial Governments across Indonesia. Journal of Government and Politics, 8(1), 1–47. https://doi.org/10.18196/jgp.8149

Sjafrizal. (2012). Ekonomi Wilayah dan Perkotaan. Jakarta, Indonesia: PT Rajagrafindo Persada.

Suratno, & Ardita. (2018). Effect of Government Investment and Capital Participation on Local Own-Source Revenue: The Case of Indonesia. European Research Studies Journal, 21(4), 368–377. https://doi.org/10.35808/ersj/1127

Susetyo, D., Zunaidah, Z., Rohima, S., Valeriani, D., & Bashir, A. (2018). Impact of Capital Expenditure and Public Utility Customers to Economic Development of District-City in Sumatra-Indonesia. International Journal of Economics and Financial Issues, 8(1), 126-135. Retrieved from https://econjournals.com/index.php/ijefi/article/view/5768

Syari, D. D., Syamsurijal, S., & Robiani, B. (2017). The Effect of Fiscal Decentralization to Gross Domestic Regional Product of District/City in South Sumatra Province. Sriwijaya International Journal of Dynamic Economics and Business, 1(2), 181–202. https://doi.org/10.29259/sijdeb.v1i2.181-202

Todaro, M. P., & Smith, S. C. (2015). Economic Development (12th ed.). Hallbergmoos, Germany: Pearson.

Triyanto, D., Wahyudi, S. T., & Ananda, C. F. (2017). The Effect of Capital Expenditure on Local Revenue: Study In East Java Indonesia. Jurnal Ekonomi Kuantitatif Terapan, 10(2), 137–144. https://doi.org/10.24843/jekt.2017.v10.i02.p04

United Nations Human Settlements Programme (UN-HABITAT). (2015). The Challenge of Local Government Financing in Ceveloping Countries. Retrieved from https://sustainabledevelopment.un.org/content/documents/1732The%20Challenge%20of%20Local%20Government%20Financing%20in%20Developing%20Countries%20_3.pdf

Wakarmamu, T., & Indrayono, Y. (2019). Spending and development in Papua province of Indonesia. Management Science Letters, 9(12), 2131–2142. https://doi.org/10.5267/j.msl.2019.6.021

Widianto, A., Sari, Y. P., & Hetika. (2015). Pengaruh Pendapatan Asli Daerah Terhadap Belanja Modal , Pertumbuhan Ekonomi dan Kemiskinan Kabupaten/Kota Di Daerah Istimewa Yogyakarta. JURNAL EKBIS (Ekonomi dan Bisnis), 3(1), 1-12.

Wulandari, E., Wahyudi, M., & Rani, U. (2018). Effect of Original Local Government Revenues, General Allocation Funds, Special Allocation Funds, Share Funds, Other Legal Revenues, Budget Surplus/Deficit to Human Development Index Through Capital Expenditures: Case Study of Regencies/Municipalities in Indonesia. Review of Integrative Business and Economics Research, 7(2), 125-137. Retrieved from http://buscompress.com/uploads/3/4/9/8/34980536/riber_7-s2_h17-129_125-137.pdf

Yuliansyah, R., Susanti, E. I., & Yanti, A. (2020). The Effect of Regional Original Revenue, Balance Funds, and Capital Expenditures on the Financial Performance of District Governments in West Java Province in 2013–2017. Proceedings of the Annual International Conference on Accounting Research (AICAR 2019), 152-156. Jakarta, Indonesia: Sekolah Tinggi Ilmu Ekonomi Indonesia. https://doi.org/10.2991/aebmr.k.200309.034

Copyright (c) 2020 Owned by the Author(s), published by Society

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Downloads

Download data is not yet available.