This research analyzes how corruption perceptions, unemployment, and economic growth affect poverty rates in Indonesia, suggesting reforms for improvement.
This study examines the impact of the Corruption Perceptions Index (CPI), Economic Growth, and Unemployment Rate on the Poverty Rate in Indonesia from 2008 to 2024. Utilizing time-series data and linear regression analysis, the research aims to uncover the relationships between these variables and their collective influence on poverty levels. The findings reveal that CPI has a significant negative effect on poverty, indicating that reducing corruption can lead to lower poverty rates. Unemployment shows a nearly significant positive effect, suggesting that higher unemployment exacerbates poverty, while Economic Growth does not exhibit a statistically significant impact in the model. The regression model explains 86.22% of the variation in poverty rates, highlighting its robustness, though autocorrelation issues were identified and warrant further attention. The study underscores the critical role of combating corruption and addressing unemployment as key strategies for poverty alleviation. While Economic Growth alone may not directly reduce poverty, fostering inclusive growth remains essential for long-term poverty reduction. Policy recommendations include enhancing transparency and accountability in public budget management, promoting labor-intensive economic sectors, and implementing skill development programs to reduce unemployment. These measures are vital for breaking the cycle of poverty and achieving sustainable development in Indonesia.
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Merry Wulandari (2025) studied this question.
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