THE STRATEGY TO SOLVE POVERTY PROBLEM IN INDONESIA

BY : MUH. ARDIANSYAH

POLITEKNIK PERTANIAN NEGERI PANGKEP

3/20/2012

Poverty is a one of the biggest problem faced in Indonesia, people are categorized as the poor when their income below the standard level of income. Most of them cannot fulfill their daily needs. Since 1945, poverty has become difficult problem for Indonesia, but until now this problem cannot be solved by the government.
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3/20/2012

The number of poor people in our country from 2005-2009

year 2005 2006 2007 Population (million) 219,852 222,747 (1,32%) 225,642 (1,30%) Poor people(million) 35,1 39,05 22,1 22,1 34,96
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Percentage of poor people 15.96% 17.53% 9.79% 9.67% 15.1%

3

2008
2009

228,575 (1,30%)
231,547 (1,30%)

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Strategy that has been implemented by the government to reduce poverty

Farming Business Credit (KUT), it takes Rp. 8.4 trillion in 1998 , but failed because it did not really empower people so that as of September 2000 , loan of KUT reached 6.169 trillion (73.69%) from loan disbursements. PKD - PWT in NTT, launched in South Sulawesi, North Sulawesi, West Nusa Tenggara;, but failed because the process of planning, execution and delivery of assistance is dependent on TPD (Village Implementation Teams). Subsidy (fuel, fertilizer, etc.) the government does not effectively help people escape from poverty because it enjoyed by rich people.

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 1st

strategy is to give power to the poor by developing their skill to make them as the important contributor in economic development. 2nd strategy is to provide job vacancy to the society especially for the poor. 3rd strategy is by improving distribution of national income for poor people
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Why we should implement that program Development Skill of Society, In the midst of global changes, improving the competitiveness is something that is not easy. Moreover, our people have been resistant to changes. Therefore, skill development community is in need so that the problem of poverty can be solved.
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Why we should implement that program

provide job vacancy to the society

especially to the poor, provide jobs in all areas that can help people out of poverty are not only governments responsibility but also private industries, non governmental organizations (NGOs) and community itself.
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Why we should implement that program

Improve Distribution of Funds for the Poor,

the data from the World Bank states that 40% of people with lowest incomes earn only 15% of national income; 40% with earnings thereon, received 32% of national income, and 20% of the highest income group received 53% of national income. This shows that the distribution of funds to the community need to be corrected and set fairly.
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WHAT IS THE MAIN AIM OF THIS PROGRAM

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The

main aim of this program is to alleviate poverty in our country . The main causes of poverty in this nation are lack of skill or capabilities of the people, lack of job opportunities/vacancies, or bad distribution of the state fund to the poor. Through this proposal, the main cause of poverty in this nation can be overcame.

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The first recommendation aimed at improving economic growth. This synergy can be achieved with policies that accumulate domestic capital, foreign investment and investment policy aimed at a productive industrial activity. The second recommendation is the policy of strengthening the national education system and training-oriented employment.
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3/20/2012

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 The

third recommendation is a policy that allows for access to voice their aspirations and opinions of the poor. The fourth recommendation is the policy governing the distribution of funds to the poor must be fair and equitable.
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CONCLUSION
The main concept developed in this paper

invites to make the problem of poverty as systemic issues, that should be accomplished through three important steps. 1. The first step is to empower poor people by developing skills / capabilities of the poor to later become an important contributor to economic growth.

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3/20/2012

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2. The second step is creating job opportunities for societies. Efforts to create and provide jobs in all areas that can help people out of poverty are not only governments responsibility but also private industries, non governmental organizations (NGOs) and community itself. Private industries for example through Corporate Social Responsibility (CSR), conducting a business partner with small and middle scale businesses that can grow and create new jobs for the community.
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3. The third step is improving distribution system of national revenue to the poor. Right now the problem of poverty in Indonesia have not been resolved due to the inequities in the distribution of funds.

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thank you very much

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3/20/2012