Analysis of the Impact of Human Capital and Local Government Budget (Social Assistance) on Poverty Levels in Indonesia from 2013 to 2023

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Analysis reveals that human capital significantly reduces poverty in Indonesia, indicating social spending ineffectiveness.

Improvements in education and health decrease poverty levels significantly.
Average years of schooling and life expectancy negatively impact poverty rates.
Social assistance spending via APBD does not significantly reduce poverty.
The findings highlight the need for better targeting of social assistance programs.

Ginting et al. (2025) studied this question.

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