Journal of Accounting Research, Utility Finance and Digital Assets (JARUDA)
Published July 24, 2026 | Version v1
Journal article Open

THE EFFECT OF INFLATION, HUMAN DEVELOPMENT INDEX, UNEMPLOYMENT RATE, AND INCOME INEQUALITY ON POVERTY IN INDONESIA

Authors/Creators

  • 1. ROR icon Universitas Islam Negeri Ar-Raniry

Description

Poverty is a multidimensional problem that is not only influenced by economic factors, but also by the quality of human resources, labor market conditions, and income distribution. This study aims to analyze the effect of inflation, the Human Development Index (HDI), the open unemployment rate, and income inequality on poverty levels in 34 Indonesian provinces during the 2015-2024 period. The data used are secondary panel data sourced from the Central Statistics Agency (BPS) totaling 340 observations, which were analyzed using panel data regression with the help of EViews software. The results of the Chow test and the Hausman test indicate that the Fixed Effect Model (FEM) is the best estimation model. The estimation results show that partially, inflation has a positive but insignificant effect on poverty; the HDI has a negative and significant effect; the open unemployment rate has a negative but insignificant effect; while income inequality (Gini ratio) has a positive and significant effect on poverty. Simultaneously, the four independent variables have a significant effect on poverty with a coefficient of determination (R²) of 98.62%. These findings indicate that improving the quality of human resources and controlling income inequality are key factors in efforts to reduce poverty in Indonesia compared to controlling inflation or reducing unemployment in isolation.

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References

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