Track: Energy

Abstract

Lack of electricity and high dropout rates create conditions of poverty everywhere in Indonesia. Poverty becomes a very complex problem that has broad impacts. Poverty destroys purchasing power, decreases human quality, and decreases economic welfare. Lately, efforts to fulfill electricity and basic education have become crucial because electricity can be used in a variety of activities and education will open views to improve the situation individually and socially. Therefore, the econometrics model in this study is the effect of electricity and basic education on poverty in the Indonesian Territory. This study uses secondary data cross section as many as 501 districts and cities in Indonesia. The analytical method in this study is Robust Least Squared Model. The results of the analysis of this study conclude that an increase in electricity and the level of participation in primary school education can significantly reduce poverty. Every 1% increase in household access to electricity will reduce the poverty gap index by 0.058, then each increase in participation primary school education will reduce the poverty gap index by 0.067. This study suggests that the policy of fulfilling electricity and basic education is crucial to combating poverty in regions in Indonesia.