Pengaruh Belanja Perlindungan Terhadap Ketimpangan Pendapatan dan Kemiskinan di Indonesia

Abstract

Income inequality and poverty are persistent economic issues in Indonesia. Despite reductions in recent years, the Indonesian population remains vulnerable to falling into poverty, especially during economic crises. The Indonesian government is committed to addressing these issues through the Sustainable Development Goals (SDGs) agenda, with a focus on social security policies. This study aims to determine the effect of government social security expenditure on income inequality and poverty in 34 provinces in Indonesia. This study uses panel data regression with a Fixed Effect Model (FEM) for income inequality analysis and a Random Effect Model (REM) for poverty analysis. The data used is secondary data obtained from Badan Pusat Statistik and Direktorat Jenderal Perimbangan Keuangan Kementerian Keuangan Republik Indonesia. The study covers data from 34 provinces in Indonesia. The variables used in this study are social security expenditure as the independent variable, and income inequality and poverty as dependent variables. The results of the study indicate that social security expenditure has a significant negative relationship with both income inequality and poverty in Indonesia. This means that an increase in social security expenditure can reduce income inequality and poverty. These findings provide empirical evidence that social security expenditure is a crucial instrument in addressing the issues of income inequality and poverty in Indonesia.