The Decreasing Target in Poverty Rate in Indonesia: 2018

Johannes, Rene (2018) The Decreasing Target in Poverty Rate in Indonesia: 2018. Universitas Bakrie. (Unpublished)

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The aim of this research is to make an estimate how long Indonesia can decrease its poverty. Between the mid-1960s and 1996, when Indonesia was under the rule of Soeharto's New Order (Orde Baru) government, the country witnessed a significant decline in poverty - both urban and rural - due to robust economic growth and efficient pro-poor programs. During the Soeharto‟s period the number of Indonesians that lived below the poverty line eased from over half of the total population to 11 percent. However, when the Asian Financial Crisis rocked the financial foundations of Indonesia in the late 1990s it had a devastating impact on poverty alleviation, causing the poverty rate to slip back from 11 percent to 19.9 percent in late 1998, meaning that much of the New Order's good work had been undone. One of the impacts of the slowing economic growth in Indonesia is the rise of poverty. About 1.1 million more people from 26 provinces became newly poor (defined as those whose incomes fell below the poverty line) between September 2014 and September 2015. At the same time, 268,000 people from 13 provinces were lifted from poverty. According to Central Statistics Agency (BPS) figures, the total number of people in absolute poverty is now 28.2 million, an increase of 2.8 percent over the same period, but these figures hide the wide differentials of poverty increases among provinces in the country. The Asian Financial Crisis started on 2 July 1997 when the Thai government, burdened with a huge foreign debt, decided to float its baht after currency speculators had been attacking the country's foreign exchange reserves. This monetary shift was aimed at stimulating export revenues but proved to be in vain. It soon led to a contagion effect in other Asian countries as foreign investors - who had been pouring money into the 'Asian Economic Miracle countries' since a decade prior to 1997 - lost confidence in Asian markets and dumped Asian currencies and assets as quickly as possible.

Item Type: Other
Uncontrolled Keywords: poverty - target - decrease - population
Subjects: Finance > Finance Management
Finance > Investment
Divisions: Lembaga Penelitian dan Pengembangan
Depositing User: Ahmad Yani
Date Deposited: 13 Aug 2018 02:31
Last Modified: 13 Aug 2018 04:44

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