Understanding the Relationships between Development Factors and Regional Poverty: What Have We Learned from Indonesia?

This article examines factors that are associated with disparities in regional poverty in Indonesia during the second half of the decentralization decade, from 2006 to 2011. This study finds that types of income growth matter for poverty reduction, particularly growth in income from the nonfood crops and services sectors. Provision of clear water is significant for poverty reduction too. The research also finds that distance from the capital city of Jakarta matters, the longer distance contributes to an increase in poverty rates. Nevertheless, there have been no robust significant relationships between in-migration, out-migration, intergovernmental transfer, and poverty.