Poverty eradication programs in Indonesia: Progress, challenges and reforms

Anda Nugroho (), Hidayat Amir, Irsyan Maududy and Irma Marlina

Journal of Policy Modeling, 2021, vol. 43, issue 6, 1204-1224

Abstract: This study explores the progress of and the challenges to poverty eradication programs in Indonesia by analyzing various social assistance programs and subsidies. Earlier poverty eradication programs such as food-based assistance and energy subsidies were only designed to increase households’ purchasing power. Later, the government also developed more advanced programs, such as conditional cash transfer, school assistance, and health insurance contribution assistance, to address long-run poverty by improving human capital quality. Common challenges of the existing programs remain, including inaccurate target the poor and lack of complementarity between programs. An exercise using a dynamic Computable General Equilibrium model shows that integrating programs into the conditional cash transfer reduces poverty further in rural and urban areas.

Keywords: Poverty program; Social assistance; Subsidy; Dynamic computable general equilibrium model (search for similar items in EconPapers)
JEL-codes: C68 H53 I38 O12 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:43:y:2021:i:6:p:1204-1224

DOI: 10.1016/j.jpolmod.2021.05.002

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