Proceedings of the 7th International Conference on Social and Political Sciences (ICoSaPS 2022)

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Digitalization and Poverty Reduction: Case in Indonesia

Authors
Dewi Regina1, Febrina Elia Nababan2, *
1Ministry of Transportation, Jakarta, Indonesia
2National Research and Innovation Agency, Jakarta, Indonesia
*Corresponding author. Email: febr013@brin.go.id
Corresponding Author
Febrina Elia Nababan
Available Online 30 December 2022.
DOI
10.2991/978-2-494069-77-0_19How to use a DOI?
Keywords
digitalization; poverty; capacity building
Abstract

The Indonesian government has set a target of 0 extreme poverty by 2024. Pandemic covid-19 make this target become more challenges. Various strategies have been designed by the government to achieve the poverty target, such as digitalization. The purpose of this article is to estimate the impact of digitalization on poverty reduction and economy growth in Indonesia. Using data from 34 provinces in Indonesia from 2015 to 2020. This article’s empirical analysis is based on panel data, Random Effect Model (REM) with an estimation technique of Two Stages Least Square (2SLS). Our results show, digitization has a significant effect on reducing poverty. On the other hand, digitalization has negative impact on economic growth. In order for digitalization to have a major impact in encouraging poverty alleviation, various things are needed, including increasing community capacity and supporting regulations made by the government. Capacity building is carried out so that the community is able to take advantage of digitalization for productive activities so as to encourage increased community welfare. Government policy support is also needed to support the wider use of digitalization.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th International Conference on Social and Political Sciences (ICoSaPS 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
30 December 2022
ISBN
978-2-494069-77-0
ISSN
2352-5398
DOI
10.2991/978-2-494069-77-0_19How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Dewi Regina
AU  - Febrina Elia Nababan
PY  - 2022
DA  - 2022/12/30
TI  - Digitalization and Poverty Reduction: Case in Indonesia
BT  - Proceedings of the 7th International Conference on Social and Political Sciences (ICoSaPS 2022)
PB  - Atlantis Press
SP  - 129
EP  - 137
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-77-0_19
DO  - 10.2991/978-2-494069-77-0_19
ID  - Regina2022
ER  -