Understanding the Socio-Economic Dynamics: COVID-19 Pandemic, Human Development, and Poverty Issues in Indonesia

Articles in Press

Document Type : Research Paper

Authors

1 Department of Economics, Trilogi University, Jakarta, Indonesia

2 Research Center for Population, National Research and Innovation Agency (BRIN), Jakarta, Indonesia

3 Department of Social Welfare Sciences, Halu Oleo University, Kendari, Indonesia

10.22059/ier.2024.378653.1008045

Abstract

The COVID-19 pandemic has presented serious challenges to various aspects of life worldwide, including in Indonesia. It has not only impacted the healthcare sector, but also significantly affected society's social and economic aspects. This study aims to understand the socio-economic dynamics influenced by the COVID-19 pandemic, particularly in the context of human development and poverty issues in Indonesia. The method utilized is panel data analysis using a random effect model involving time series data from 2010 to 2021, covering 33 provinces in Indonesia. The findings indicate that human development is crucial in addressing poverty, where efforts to enhance the quality of healthcare and education are essential to confront these challenges, especially during the COVID-19 pandemic. Additionally, this study finds that investment plays a role in reducing poverty, whereas increases in minimum wages, particularly during the pandemic, and open unemployment rates contribute to its exacerbation. Economic growth and inflation did not have a significant impact on poverty alleviation. The government needs to implement strategic measures, such as investing in the education and healthcare sectors and providing affordable access to both sectors to enhance productivity and the well-being of society. Thus, active government intervention can improve quality of life and reduce the poverty rate in Indonesia.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 02 October 2024

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