Global Economic, Social, and Development Review

Determinants of Poverty in East Java: Education, Unemployment, and Minimum Wage

Laila Choirummin Alfin — 2025-02-28

This study aims to analyze the effect of average school years, open unemployment rate, and minimum wage on the number of poor people in East Java Province from 2014-2023. The research method used is quantitative with a descriptive approach, using panel data regression covering 38 districts/cities. The data analyzed were sourced from the East Java Badan Pusat Statistik (BPS), including the number of poor people, average school years, open unemployment rate, and minimum wage. The analysis shows that average years of schooling have a significant negative effect on poverty. Although the minimum wage hurts poverty, the effect is minimal. These findings emphasize the importance of improving education and reducing unemployment as the main strategies for poverty alleviation in East Java.

The Impact of Food Energy Consumption and Poverty Levels on the Prevalence of Food Inadequacy in Indonesia

Nur Afini — 2025-10-29

Food security in Indonesia continues to face serious challenges despite the declining poverty rate, indicating that income growth alone does not necessarily translate into improved nutritional outcomes. This study examines the effects of household food energy consumption and poverty levels on the prevalence of inadequate food consumption across 34 provinces in Indonesia from 2019 - 2024. The findings reveal that higher household food energy consumption significantly reduces the prevalence of inadequate food consumption, whereas poverty levels do not exhibit a significant effect. These results diverge from much of the existing literature that positions poverty as the primary determinant of food insecurity. The novelty of this study lies in demonstrating that food energy adequacy exerts a more direct and consistent influence than poverty status in explaining food insecurity at the provincial level. The policy implication is that poverty alleviation alone is insufficient to address nutritional deficiencies. Instead, interventions should focus on improving household access to energy-dense and nutritious foods through local agricultural development, food price stabilization, and targeted nutrition programs. Such strategies are considered more effective in supporting the achievement of the Zero Hunger target in Indonesia.

21st Century Competition: State & Conglomeration-Driven Capitalism

Yeremia Widjanarko — 2025-06-09

Indonesia needs to choose an economic model in order to realise its target of 8% GDP growth under Prabowo Subianto’s incoming administration. This paper compares both China’s state capitalism and South Korea’s conglomerate-driven capitalism for their relevance to Indonesia. China’s model, with a significant state intervention and SOEs prominent role, greatly driven industrialisation and average of 9% GDP growth over 30 years. Whilst South Korea’s model, dominated by conglomeration, focuses more on innovation in tech and exports, thus achieving a stable 4% average GDP growth. Employing data from the World Bank on FDI, exports, and GDP in constant 2015 USD, this paper examines both of these models using the Comparative Political-Economy framework. The findings showed that the China’s state capitalism to be more suitable for Indonesia due to capability of managing a large scale economy and the need of centralisation of resource control, infrastructure development and economic transitions. The blending of state control and market dynamics offers flexibility to tackle challenges in the economy. Nevertheless, the issues of inefficiencies must be in concern.

Strategies for Empowering Small and Medium Enterprises to Promote Sustainable Tourism in Tourist Villages: A Systematic Literature Review

Yosabah Zahro — 2025-10-14

Micro, Small, and Medium Enterprises (MSMEs) are crucial drivers of sustainable tourism in rural communities, yet their potential is often constrained by structural challenges. This systematic literature review, conducted using the PRISMA protocol covering publications from 2020 to 2025, analyzes empowerment strategies for MSMEs in tourism villages, focusing on Indonesia and the Philippines. The findings reveal that leadership, digital innovation, and capacity development are essential for strengthening economic resilience, environmental preservation, and cultural conservation. Successful cases, such as Ponggok Village (Indonesia) demonstrate how an integrated approach—combining stakeholder collaboration, technology, and training—can enhance operational efficiency and expand market access. However, barriers such as uneven infrastructure, low digital literacy, and dependence on external funding persist, necessitating local policy interventions. This study underscores the need for inclusive governance models that prioritize marginalized groups (e.g., women and rural entrepreneurs) and align with the UN Sustainable Development Goals (SDGs 8, 9, and 11). The limitations of this research include its geographical focus on Southeast Asia and the predominance of short-term case studies. Future research should explore long-term impacts and develop measurable frameworks applicable to diverse socio-economic contexts. This paper contributes to the discourse on inclusive tourism development by providing actionable insights for policymakers, practitioners, and academics to leverage MSMEs as catalysts for sustainable rural transformation.