POVERTY DYNAMICS IN INDONESIA: THE ROLE OF INFLATION, POPULATION GROWTH, AND UNEMPLOYMENT

Abstract

This study aims to analyze the effect of inflation, population growth, and unemployment on poverty levels in Indonesia. The background of this study is based on the phenomenon of poverty, which remains a challenge for national development, despite fluctuations in poverty rates over the past few years. This study employs a quantitative approach using secondary time-series data from 2006 to 2024 obtained from the Central Bureau of Statistics (BPS) and the World Bank. The analysis technique used is multiple linear regression with the Ordinary Least Squares (OLS) method. The results of the study indicate that, simultaneously, inflation, unemployment, and population growth have a significant impact on poverty levels. Partially, the variables of unemployment and inflation have a positive and significant impact on poverty levels. Meanwhile, population growth has a negative but insignificant impact. These findings indicate that increases in inflation and unemployment tend to drive up poverty levels, while population growth has not yet shown a strong direct relationship. The implications of this study emphasize the importance of inflation control and job creation as key strategies in poverty alleviation in Indonesia.