Sum up the impecunious resident (under Poverty Line) in Indonesia at March 2006 equal to 39,05 million (17,75%). Compared to February 2005 equal to 35,10 million (15,97%), meaning impecunious resident amount increase to 3,95 million. Impecunious Resident percentage between area of urban and countryside not many changing. March 2006, most (63,41%) impecunious resident live in the countryside area. (Statistical Formal News No.47/IX/1 September 2006: Poverty Storey; Level in Indonesia Year 2005-2006. www.BPS.go.id).
Poverty have made millions of children cannot get quality education, difficulty defray the health, lack of saving and investments inexistence, lack of accessing to public service, lack of work field, lack of social security and protection to family, strength of it urbanization current to town, and more hard, poverty cause millions of people fulfill the food requirement, gird and board finitely. Poverty cause the countryside society ready to sacrifice any kind of for the shake of safety live, allowing the release of physical energy to produce the advantage for local wholesaler and accept the mismatch fee with the energy expense.
Poverty causes the lower the Human Development Index (HDI). By totally quality of human being of Indonesia relative still be very low, compared to other nations in world. Pursuant To Human Development Report 2004 using year data 2002, number of Indonesian Human Development Index (HDI) is 0,692. The index number represent composite the number of life moment born equal to 66,6 year, number of ability to read of age 15 year up equal to 87,9%, harsh participation number combination of elementary education ladder up to higher education of equal to 65% , and Domestic Earnings Bruto per capita by pursuant to purchasing power parity equal to US$ 3.230. HDI of Indonesia only take in 111 possession from 177 state (Kompas, 2004).
Why Poverty in Indonesia difficult to be lessened even tend to increase? At least there are three cause making program of Poverty eradication meet not optimal result which is: First, approach of Poverty eradication less fitt in with the real condition of social-economic-culture of Indonesia which still have the dualistic characters, that is there still such a great difference among modern-industrial sector and countryside traditional sector (economic [people). Second, approach to responder of program the eradicate of Poverty very individual / individual ness, though in reality of Poverty eradication need the role of society group (Kelompok masyarakat). Third, at area of economic activity assumed the existence of clear dissociation between domestic economic activity everyday by the business included in its bookkeeping. Though this dissociation is one of weakness UKM.
To get the optimal result in poverty eradication, government in making policies should synchronize with poverty eradication programs. The policies to eradicate poverty is not for one or two isolate policies but for a package of complementary and supportive policies, including the following basic elements.
Poverty have made millions of children cannot get quality education, difficulty defray the health, lack of saving and investments inexistence, lack of accessing to public service, lack of work field, lack of social security and protection to family, strength of it urbanization current to town, and more hard, poverty cause millions of people fulfill the food requirement, gird and board finitely. Poverty cause the countryside society ready to sacrifice any kind of for the shake of safety live, allowing the release of physical energy to produce the advantage for local wholesaler and accept the mismatch fee with the energy expense.
Poverty causes the lower the Human Development Index (HDI). By totally quality of human being of Indonesia relative still be very low, compared to other nations in world. Pursuant To Human Development Report 2004 using year data 2002, number of Indonesian Human Development Index (HDI) is 0,692. The index number represent composite the number of life moment born equal to 66,6 year, number of ability to read of age 15 year up equal to 87,9%, harsh participation number combination of elementary education ladder up to higher education of equal to 65% , and Domestic Earnings Bruto per capita by pursuant to purchasing power parity equal to US$ 3.230. HDI of Indonesia only take in 111 possession from 177 state (Kompas, 2004).
Why Poverty in Indonesia difficult to be lessened even tend to increase? At least there are three cause making program of Poverty eradication meet not optimal result which is: First, approach of Poverty eradication less fitt in with the real condition of social-economic-culture of Indonesia which still have the dualistic characters, that is there still such a great difference among modern-industrial sector and countryside traditional sector (economic [people). Second, approach to responder of program the eradicate of Poverty very individual / individual ness, though in reality of Poverty eradication need the role of society group (Kelompok masyarakat). Third, at area of economic activity assumed the existence of clear dissociation between domestic economic activity everyday by the business included in its bookkeeping. Though this dissociation is one of weakness UKM.
To get the optimal result in poverty eradication, government in making policies should synchronize with poverty eradication programs. The policies to eradicate poverty is not for one or two isolate policies but for a package of complementary and supportive policies, including the following basic elements.
1. The policy designed to correct factor price distortions so as to ensure that market or institutionally establishes prices provide accurate signals and incentives to both producers and resources suppliers. Correcting distorted prices should contribute to greater productive efficiency, more employment, and less poverty. The promotion of indigenous technological research and development of efficient, labor intensive methods of production may also be valuable.
2. The policy designed to bring about far reaching structural changes in the distribution of assets, power and access to education and associate income earning (employment) opportunities. Such policies go beyond the realm of economics and thoughts on the whole socials, institutional, cultural and political fabric of the developing word. But without such fundamental structural changes and substantive assets redistributions, whether immediately achieved, the chances of improving significantly the living conditions of the masses of rural and urban poor in any reasonable time frame will be highly improbable, perhaps even impossible. For examples the transmigrations program should be followed with the infrastructure development and providing the public needed in developing their communities.
3. The policy designed to modify the size distribution of income at the upper levels to the enforcement of the legislated progressive taxation on income and wealth and at the lower level to the direct transfer payments and the expanded provisions of publicly provide consumption goods and services, including workfare programs. The net effect is to create social safety net for people who may be bypassed by the development process. The taxation should not encumbering the people who being struggle to go out from the poverty or reducing their incomes that use to be add the asset to develop the small business in to more large scale business.
4. A set of targeted policies to directly improve the well being of the poor and their communities, particularly those caught in poverty traps, that goes beyond safety net schemes, to offer programs that build capabilities and human and social capital of the poor, such as microfinance, health, educations agricultural development, environmental sustainability, and community development and empowerment programs. These can be carried out either by government or by non governmental organizations through local and international support.
Especially in microfinance the law have to be made in order to make the more amount banking for the credit of micro for the society of impecunious. Others also have to be made wholesale fund, so that each and everyone which wish to loan the money to impecunious can borrow from wholesale fund and loan it to impecunious. This is happens in Bangladesh and get very successfully to empowerment the poverty communities.
Various programs and the poverty eradicate policy, requiring serious effort to execute. From other side that needed governmental commitment and all party to see poverty as fundamental problem which must be handled more better, continuation and with the budget support.
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