Such as information and communication technology (viii) Healthcare (ii) access to capital (iii) employmentĪnd business opportunities (iv) access to technology (vi)Īccess to raw materials (vii) access to physical infrastructureĪs well as non-physical infrastructure or economic infrastructure These factors are (i) access to education and Inequality become important variables in analyzing inclusiveĮconomic growth. So, automatically the factors that directly influence poverty and Measuring the inclusiveness of an economic growth. Poverty and inequality are two most important indicators in Table 1 shows previous studies in Indonesia. While other studies only examined one orĪ few provinces. In 2008 only a few provinces showed inclusive growth, whereasĭuring the 2009-2012 period none of the provinces experiencedĪn inclusive growth. In 34 provinces for the 2008-2012 period. Namely from Sholihah (2014) who conducted an empirical research Studies that the authors managed to find, there is only one study, Growth at the provincial level in Indonesia. Until now there has not been so much research on inclusive Iii.What factors that most determine the achievement of inclusive economic growth in 34 provinces? Ii.Are there differences in achieving inclusive economic growth between provinces? I.is Indonesia successful in achieving inclusive economic growth? This research focuses on the following three questions: The definition of inclusive economic growth used in this study is an economic growth that reduces poverty, income distribution inequality and unemployment.
The aim of this study is to evaluate Indonesia’s achievement in inclusive economic growth by analyzing regional data from 34 provinces. This study is part of ongoing research project on “Inclusive Development in Indonesia”. Wide reforms have been carried out in all areas of governance, including in the financial sector, and a new development strategy has been adopted for “inclusive” economic development. In the social, economic, and political fields, Indonesia has seen much progress. Making the country one of the region’s most vibrant democracies. The government has embarked upon institutional transformation, In Indonesia, many reforms have been carried out since the end of the 1997-98 Asian financial crisis. Among these elements, poverty reduction, employment creation and equal distribution of income have received the most attention in empirical studies of, explicitly or implicitly, inclusive economic growth. Inclusive economic growth has a number of elements, which include poverty reduction, employment generation, improvement in quality of employment, agriculture development, industrial development, social sector development, reduction in regional disparities, environment protection, and equal distribution of income. In the same way, inclusive economic growth is one that emphasizes economic opportunities created by economic growth are freely available to all, particularly the poor. It focuses on creating economic opportunities and making them accessible to everyone in society at all levels, not just to the poor. Such as Sen, Sachs, Ali, Son, Rauniyar and Kanbur, and McKinley stress that inclusive economic development is economic growth coupled with equal economic opportunities. The concept clearly encompasses inclusion and economic development, and views inclusion as a process as well as a goal. Keywords:Inclusive economic growth Inclusive growth index Poverty Employment InequalityĪccording to Ali, Zhuang, Ali, Son, and Rauniyar and Kanbur, the term “inclusive economic development” has no widely accepted definition. It was found that access to technology represented by the percentage of households owning a computer and access to energy represented by the percentage of households using LPG as the main fuel for cooking have positive effects on the acceleration of inclusive economic growth in Indonesia. Only a few provinces that have achieved inclusive growth. The results indicate that economic growth in Indonesia is not yet fully inclusive. For this purpose, the study used three indicators of achieving inclusive economic growth, namely economic growth that reduces inequality, poverty, and unemployment (or increases employment), the Poverty-Equivalent Growth Rate (PEGR) method, and the technique of multiple linear regression analysis (i.e. This study evaluates Indonesia’s achievement in inclusive economic growth by analyzing regional data from 34 provinces for the period 2016-2018.