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ANALISIS PENGARUH SEKTOR PERTANIAN DAN SEKTOR INDUSTRI PENGOLAHAN TERHADAP KEMISKINAN DI JAWA TENGAH

ANALISIS PENGARUH SEKTOR PERTANIAN DAN SEKTOR INDUSTRI PENGOLAHAN TERHADAP KEMISKINAN DI JAWA TENGAH
Agus Setyawan,Rina Indiastuti dan Tati S. Joesron
Unpad
Inggris

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Poverty is a fundamental issue that became the center of attention of the government in any country. In nearly all developing countries, living standards of mainly its inhabitants tending to very low, one of which eventuate in very low income levels or poverty. One of the problems of development in Central Java is slow declining poverty caused by lack of access to education, health, employment and capital. The other problems are ineffective agricultural productivity, poor farmers ‘ livelihoods and the lack of control over the function shifting of agricultural land into non agricultural land. This research was conducted to find the linkages between the agricultural sector, manufacturing sector, economic growth, education and population growth towards poverty in Central Java. Both descriptive and econometrics analysis have done through fixed effect approach on panel data of 35 regencies/cities in Central Java, from 2003 to 2010. Results showed evidence that manufacturing sector, economic growth and population growth have significant influences in lowering poverty. On the other side, agricultural sector and education have not been proven to be able to reduce poverty effectively. Therefore, the government needs to take the policy of agricultural modernization through development of agricultural technology, provision of materials and the means of production, as well as providing market for the agricultural products. Economic development based on SME’s and labor-intensive industries need to be encouraged, to provide more job opportunities. The government also needs to ensure that high economic growth can reach out to all classes of society. Granting of applicative skills needs to be improved, so the graduates are ready to entering the workforce. Government policy that sets compulsory nine years need to be maintained or even can be enhanced into twelve years. Education facilities should be widely distributed evenly, so they can be accessed by all levels of society. We also need to develop technologies that can increase labor productivity. Moreover, population growth that usually occur in poor families still need to be controlled.