Social Entrepreneurship and Poverty Reduction in Indonesia: Measurement, Effects and Policy Implications

This study estimates the impact of social entrepreneurship on poverty in Indonesia and its regional variation. Using Susenas and Sakernas 2014 and 2017, Social Entrepreneurship Index (SEI) is constructed at the provincial level aggregating social, economic and environmental dimensions. Key findings show the social dimension is declining while economic and environmental dimensions rise; SEI slightly declines with Java–Bali–Kalimantan leading while Eastern Indonesia lags; urban–rural SEI disparities persist; and higher SEI reduces poverty rates. The study recommends prioritizing investment in Eastern Indonesia, strengthening the social dimension, and adopting differentiated urban–rural strategies for environmental and economic improvements.