The Relationship of Indonesia’s Poverty Rate Based on Economic Growth, Health, and Education

Abstract

Poverty is one of the most common problems in each country. This poverty phenomenon occurs in all countries that are not divided into developed countries in the world. This poverty occurs due to several factors, such as the low level of economic growth, health, and education of a country. This study aims to analyze Indonesia's poverty level seen through economic growth, health, and education from 2004-2017. This research is a quantitative study using secondary data obtained from Badan Pusat Statistik (BPS) Indonesia and Statistik Ekonomi dan Keuangan Indonesia (SEKI). In analyzing the data, use the application of E-Views 10 with the Ordinary Least Squares (OLS) method. The results showed that: (1). Economic growth has a positive and not significant influence on Indonesia's poverty level, (2). Health has a negative and significant influence on Indonesia's poverty level, (3). Education has a negative and insignificant influence on Indonesia's poverty level, (4). Economic growth, health, and education affected the Indonesian poverty rate of 88.5% which was indicated by the R-squared value of 0.885.