Poverty Dynamics In Indonesia (A Comparison Of Condition Prior To And During The Covid-19 Pandemic)

Abstract

This study aims to determine the effect of the economic growth rate (GRDB rate), participation rate of the labor force (TPAK), average years of schooling (RLS), bank credit, and information and communication technology (ICT) on poverty levels in Indonesia before and during the COVID-19 pandemic. The research method used panel data analysis using a random effect approach. The results of data analysis show that the economic growth variable before COVID-19 had an insignificant positive effect, while during the COVID-19 pandemic it had a significant positive effect on the poverty rate, while TPAK in Indonesia before and during the COVID-19 pandemic had a negative and insignificant effect on the poverty rate. RLS before the pandemic has a significant negative effect; during the COVID-19 pandemic,it has a negative and insignificant effect on poverty. Bank credit before the COVID-19 pandemic has a significant negative effect; during the pandemic, it has an insignificant negative effect on the poverty rate. ICT before the pandemic has an insignificant positive effect, and during the pandemic it has an insignificant negative effect on poverty in Indonesia. ICT use in the community was relatively low prior to the pandemic, but it increased as a result of the transition to digital systems for all activities.