Yogyakarta – 27 Oktober 2022
The Master of Science and Doctoral Program (MD) FEB UGM collaboration with the Department of Economics, has held a Brown Bag Seminar with the topic “Geographic Poverty Trap in Rural Indonesia: Isolation and Disasters” with the speaker Mr. Wisnu Setiadi Nugroho, S.E., M.Sc., Ph.D., Lecturer of the Department of Economics, FEB UGM. This extraordinary session hosted by Mrs. Heni Wahyuni, M.Ec.Dev., Ph.D. as a moderator. In addition, Mr. Gumilang Aryo Sahadewo, M.A., Ph.D. (Vice Dean for Research, Community Service, Cooperation, and Alumnae), Mr. Rimawan Pradiptyo, M.Sc., Ph.D. (Head of the Department of Economics FEB UGM), Mrs. Eny Sulistyaningrum, M.A., Ph.D. (Secretary of the Department of Economics, FEB UGM), Dr. Evi Noor Afifah, M.S.E. (Head of Economics Laboratory FEB UGM), and Mr. Novat Pugo Sambodo, S.E., MIDEC. (Chairman of the Center for Islamic Economics and Business Studies FEB UGM). The event which was held offline at Hall Lt. 8 FEB UGM Learning Center Building, started at 13.30-15.30 WIB.
On that occasion, Mr. Wisnu presented his dissertation entitled “Geographic Poverty Trap in Rural Indonesia: Isolation and Disasters.” The issue of isolation and natural disasters has crucial impact on poverty levels. With regard to welfare, the term poverty trap reveals that poverty is difficult to overcome because many factors influence each other, so it lock each other and trap people in poverty like a trap. In the dissertation, the issue raised is more specific, namely the poverty trap due to geographical factors. The research object is in the rural area of Indonesia with a low population density but far from the city center, industry, and market access. The suburbs are also remote and experiencing disasters based on available data.
The poverty trap lasts between generations and over time, where people find it difficult to escape from these conditions. That is an interesting issue to study regarding the extent to which existing factors affect the poverty occurs. The results of this study also lead to poverty alleviation policies in remote areas. The independent variables in this study consisted of geographic location (mountain land), less favorable land (agricultural land), minimal market access (distance from markets, industry), physical isolation (quality to banks, distance to sub-districts), and frequency of natural disasters (floods, droughts). The dependent variables in this study are total assets, total wealth, and livelihood index. Regard with asset data collection, it starting from bicycles to homes. The research novelty in this research is to introduce environmental variables, market access, and isolation as the main characteristics. Environment variables are very influential because they are related to access and equitable distribution of policies and their implementation, including in dealing with poverty.
Based on data processing, several results obtained. First, geographical location, which in this context is mountain land, has a negative effect on asset accumulation. The higher the mountains, the lower the accumulated assets. Second, less favorable land, which in this case is agricultural land, has a negative effect on asset accumulation. The poorer the condition of agricultural land, the lower the accumulation of assets. Third, the lack of market access has a negative effect on asset accumulation. The higher the level of lack of market access, the lower the accumulation of assets. Fourth, isolation (distance to sub-district) has a negative effect on asset accumulation. The higher the level of isolation, the lower the accumulation of assets. Fifth, natural disaster (flood) has a positive effect on asset accumulation, while natural disaster (drought) has a negative effect.
Based on the results of study, it can be concluded several things. The government needs to take action to overcome isolation and natural disasters, such as mitigation efforts in the form of infrastructure construction (dams, roads) and increasing digitalization to support the acquisition of information, education, and trade. The lack of market access can be overcomed by building public facilities or improving their infrastructure. It is also crucial in an area to have quality human resources to improve the management village. Therefore, it is necessary to increase the education level and the training implementation that reaches people in rural areas. (Y)
