BASIC INFRASTRUCTURE ROLE TO POVERTY REDUCTION IN INDONESIA
NUGROHO, SIDIQ SURYO (Adv.: Takahiro Akita), Takahiro Akita
The relationship between basic infrastructure and poverty reduction in Indonesia is investigated in this present study. The role of basic infrastructure to fight the poverty will be depicted as the relationship of clean water distribution, electricity transmission and number of health care center in particular areas with the poverty rate. This present study reveals that clean water distribution, electricity transmission and number of health care center have an impact on poverty rate through economic growth which is proxied by human development index (HDI), in the other words the relationship between infrastructure and poverty is indirect relationship. Thus, if the Indonesian government is serious about reducing poverty, then the policy should give more emphasis on the poor and provide them with those basic infrastructures; and also have to improve the accessibility of the infrastructures for the poor people although its effect is indirectly.
Kata Kunci : poverty reduction in Indonesia, the poor people, economic growth, human development index (HDI)