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Poverty eradication programs in Indonesia: Progress, challenges and reforms

Author

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  • Nugroho, Anda
  • Amir, Hidayat
  • Maududy, Irsyan
  • Marlina, Irma

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.

Suggested Citation

  • Nugroho, Anda & Amir, Hidayat & Maududy, Irsyan & Marlina, Irma, 2021. "Poverty eradication programs in Indonesia: Progress, challenges and reforms," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1204-1224.
    • Handle: RePEc:eee:jpolmo:v:43:y:2021:i:6:p:1204-1224
    DOI: 10.1016/j.jpolmod.2021.05.002
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    Cited by:

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    2. Oliver, Xisco & Encabo, Isabel & Padilha, Giovanni & Piccoli, Luca, 2022. "Reducing the regressivity of indirect taxation in Brazil through a personalized value-added tax," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 903-919.
    3. Yan Miao & Zheng Li, 2023. "The poverty alleviation effect of transfer payments: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

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    More about this item

    Keywords

    Poverty program; Social assistance; Subsidy; Dynamic computable general equilibrium model;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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