Research Article
The Impact of Village Cash for Work Intensive Program on Poverty Reduction in Indonesia
@INPROCEEDINGS{10.4108/eai.1-11-2023.2355338, author={Novita Riani and Adawiya Taufani and Stephani Eka Putri Maru'ao}, title={The Impact of Village Cash for Work Intensive Program on Poverty Reduction in Indonesia}, proceedings={Proceedings of the 6th Annual International Conference on Business and Public Administration, AICOBPA 2023, 1 November 2023, Malang, Indonesia}, publisher={EAI}, proceedings_a={AICOBPA}, year={2025}, month={12}, keywords={village cash work intensive poverty rural economics developing country}, doi={10.4108/eai.1-11-2023.2355338} }- Novita Riani
Adawiya Taufani
Stephani Eka Putri Maru'ao
Year: 2025
The Impact of Village Cash for Work Intensive Program on Poverty Reduction in Indonesia
AICOBPA
EAI
DOI: 10.4108/eai.1-11-2023.2355338
Abstract
High poverty rates in rural areas are one of the big contributors to poverty in Indonesia. The government has carried out various interventions to alleviate poverty, including the Village Cash for Work Intensive Program (Padat Karya Tunai Desa - PKTD), which originates from village funds. This study aims to find out empirically how much the PKTD program impacts reducing poverty levels. The data used in this study is secondary data for 2021-2022 in 205 districts in Indonesia. This study uses a quantitative approach with a panel data method. The results showed that PKTD had a significant effect on the poverty rate, where if PKTD increased by 1%, it would reduce the poverty rate by 0.35%. In addition, the poverty rate is also significantly influenced by the GRDP growth rate and the average length of schooling in the district. Therefore, the government can use the PKTD scheme as a way to alleviate poverty and make improvements to the program.
