Poverty reduction and digitalization in Indonesia: The conditional role of human capital and economic growth in an underdeveloped province

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Panel data analysis reveals that human capital and economic growth play critical roles in reducing poverty.

Digitalization can significantly reduce poverty in underdeveloped provinces only when human capital exceeds a certain threshold.
The analysis shows a 22% spillover effect of local poverty across contiguous provinces, emphasizing interconnectedness.
Significant inverse associations between the Human Development Index (HDI) and poverty levels highlight the importance of education and healthcare.
The proposed phases stress the necessity of investing in human capital to enable efficient digital integration and inclusive development.

Wurarah et al. (2025) studied this question.

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