Urban and Rural Slums: An Exploratory Analysis of Slum Households Formation in Indonesia?

Abstract

Slums are growing. New slums are forming. Characterized by poor shelter, low service provision and lacking in security of tenure, they located in urban and rural areas alike. This article follows a quantitative methodology to explore factors contribute to the formation of slums in urban and rural areas in Indonesia. Data published by BPS-Statistics Indonesia used for this exploration. The proportion of slum households by province in 2019 is used as the dependent variable. The explanatory variables include poverty gap index, poverty severity index, Gini ratio, gross domestic regional product at current price, head count index and percentage of urban population. Since the dependent variable assumes values in proportions and beta-distributed, beta regression is used using betareg function from betareg package implemented in open source R-program. Analysis of the data has found that all proposed explanatory variables are not statistically significant. Discussion provided relating strategies in doing quantitative research in Indonesia.

Keywords: slums; beta regression; urban; rural.