Factors Affecting Poverty in Indonesia

This research is entitled "Factors that affect poverty in Indonesia”. The purpose of this study is to analyze the effect of economic growth, education level, inflation rate, unemployment rate on poverty in Indonesia. This study uses secondary data obtained from BPS during the period 2011- 2020, with the number of observations consisting of 34 cross-sections and 10 time series. The analysis technique used is multiple linear regression with the Ordinary Least Square (OLS) model. The results are simultaneously the variables of economic growth, education level, inflation rate, and unemployment rate affect poverty in Indonesia. Then individually, the education level variable has a negative and significant effect and the unemployment rate has a positive and significant effect on poverty in Indonesia, while the variables of economic growth and inflation rate do not significantly affect the poverty rate in Indonesia. The unemployment rate variable is the most influential variable on poverty in Indonesia. The implication that the government must optimize the proportion of investment or capital to optimize economic growth, maintain long-term consistency in the field of education, maintain inflation rates in order to achieve targets for each period, optimize labor absorption so as to balance labor-intensive industries and capital-intensive industries