International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 9 - Issue 2, February 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Determinant Analysis Of Household Income Inequality And Poverty In Indonesia

[Full Text]



Muammar Rinaldi, Muhammad Fitri Rahmadana



Basic electricity tariffs, fuel oil, income inequality, poverty.



Inequality and poverty problems in Indonesia continue to be the main government's target to realize the welfare of society, high income inequality can affect the low purchasing power of society and causing poverty. Purchasing power is influenced by nonmonetary factors such as fuel prices and basic electricity tariffs. The purpose of this article is to examine the effects of the fuel prices increase and the basic electricity tariffs on the household income inequality and poverty in Indonesia, both in short and long term. The analysis model used in this study refers to the basic model of multiple linear regression equation with ECM method in estimating short-term and long-term relationship. Result obtained is wether in short-term or long term, variable that used in this study significantly influence the household inequality and poverty in Indonesia.



[1] W. Easterly, “Inequality does cause underdevelopment : Insights from a new instrument,” J. Dev. Econ., vol. 84, no. 2, pp. 755–776, 2007.
[2] A. Bigsten, “Poverty, Inequality and Development, in Gemell, N (eds),” in Surveys in Development Economics., England: Oxford: Basil Blackwell, 1987.
[3] A. Sen, Development as Freedom. Oxford University Press, 1999.
[4] I. Maipita, M. Dan Jantan, and N. A. A. Razak, “The Impact Of Fiscal Policy Toward Economic Performance And Poverty Rate In Indonesia,” Bull. Monet. Econ. Bank., no. November, 2010.
[5] Statistics Indonesia, Human Development Index 2015. Jakarta: Statistics Indonesia, 2016.
[6] M. Rinaldi, “Education is as The Encouragement Of The Increasing Of Human Development,” no. April, 2017.
[7] UNDP, Human development report 2016, Communicat. USA: UNDP, 2016.
[8] UNDP, Indonesia’s Human Development Index Rises but Inequality Remains. United States of America, 2017.
[9] I. Maipita and S. T. Wahyudi, “Income Distribution and Inequality in Indonesia: Study on Middle Class Household,” J. Ekon. Pembang. Kaji. Masal. Ekon. dan Pembang., vol. 18, no. 1, p. 131, 2017.
[10] UNDP, “Human Development Report 2016: Indonesia,” Human Development for Everyone Briefing note for countries on the 2016 Human Development Report, pp. 1–8, 2016.
[11] O. F. Norheim and Y. Asada, “The Ideal of Equal Healt revisited : Definitions and Measures of Inequity in Health Should be Better Integrated with Theories of Distributive Justice,” Int. J. Equity Health, vol. 9, pp. 1–9, 2009.
[12] E. Chiappero-martinetti, “Poverty As Lack Of Opportunity : A Comparison Between John Roemer and Amartya Sen,” Sulla Riv. della Soc. Ital. di Econ. Demogr. e Stat., pp. 1–21, 2009.
[13] S. K. Annim, S. Mariwah, and J. Sebu, “Spatial inequality and household poverty in Ghana,” Econ. Syst., vol. 36, no. 4, pp. 487–505, 2012.
[14] A. Rodriguez-pose and D. Hardy, “Addressing poverty and inequality in the rural economy from a global perspective,” LSE Res. Online, vol. 61, pp. 11–23, 2015.
[15] I. Maipita, M. Dan Jantan, and J. Jusoh, “The Impact of Diverting Fuel Subsidy to Agricultural Sector on Income Distribution and Poverty,” Soc. Interdiscip. Bus. Res., pp. 1–23, 2011.
[16] A. Jędrzejczak, “Decomposition of the Gini Index by Sources of Income,” Int. Atl. Econ. Soc., vol. 14, pp. 441–447, 2008.
[17] J. Haughton and S. R. Khandker, Handbook on Poverty + Inequality. Washington DC: The International Bank for Reconstruction and Development, 2009.
[18] S. Alkire and J. Foster, “Designing the Inequality-Adjusted Human Development Index ( HDI ),” OPHI Work. Pap. No . 37, 2010.
[19] N. Dziedzic, World Poverty. United States of America: Information Plus, Wylie, Texas, 2006.
[20] K. Sunderam and S. D. Tendulkar, “Poverty Has Declined in the 1990s,” Economic and Political Weekly, pp. 327–37, 2003.
[21] A. Angelsen, “Poverty And Inequality: Economic Growth Is Better Than Its Reputation,” Fagbokforlaget, pp. 1–20, 2006.
[22] I. A. N. Domowitz and C. S. Hakkio, “Interpreting An Error Correction Model: Partial Adjustment, Forward-Looking Behaviour, and Dynamic International Money Demand,” J. Appl. Econom., vol. 5, pp. 29–46, 1990.
[23] D. A. Dickey and W. A. Fuller, “Distribution of the Estimators for Autoregressive Time Series With a Unit Root,” J. Am. Stat. Assoc., vol. 74, no. 366, pp. 427–431, 2013.
[24] J. P. Lesage and R. K. Pace, “The biggest myth in spatial econometrics,” SSRN, 2010.