The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia

The Indonesian government is trying to reduce the poverty rate, among others, by encouraging investment sourced from within the country and abroad and increasing the number of micro, small and medium-sized businesses. However, until the end of 2020, the category of poor people in Indonesia is still...

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Main Authors: Herman Soegoto, Suryatno Wiganepdo Soegoto, Daniel Francois Meyer
Format: Article
Language:English
Published: IEECA 2022-11-01
Series:Journal of Eastern European and Central Asian Research
Subjects:
Online Access:https://ieeca.org/journal/index.php/JEECAR/article/view/1072
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author Herman Soegoto
Suryatno Wiganepdo Soegoto
Daniel Francois Meyer
author_facet Herman Soegoto
Suryatno Wiganepdo Soegoto
Daniel Francois Meyer
author_sort Herman Soegoto
collection DOAJ
description The Indonesian government is trying to reduce the poverty rate, among others, by encouraging investment sourced from within the country and abroad and increasing the number of micro, small and medium-sized businesses. However, until the end of 2020, the category of poor people in Indonesia is still relatively high, about ten per cent of the total population of Indonesia. This research problem encouraged the authors to examine the role Domestic Investment (DI), Foreign Investment (FI) and Micro, Small, and Medium Enterprises (MSMEs) to reduce poverty in Indonesia. This is also because there has been no previous Indonesian research involving the four variables with data from 2010 to 2020. This study used quantitative methods to determine the impact of DI, FI and MSMEs on the magnitude of poverty. Data combining time series and cross-section data is analyzed using the least square panel method. The results of the study showed that poverty would decrease when there is an increase in domestic investment, an increase in foreign investment, and an increase in the number of micro, small and medium-sized enterprises in Indonesia.
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spelling doaj.art-048cecad0c31470dbe76878062e223b82022-12-22T02:38:32ZengIEECAJournal of Eastern European and Central Asian Research2328-82722328-82802022-11-019510.15549/jeecar.v9i5.1072The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in IndonesiaHerman Soegoto0Suryatno Wiganepdo Soegoto1Daniel Francois Meyer2Universitas Komputer IndonesiaUniversitas Komputer IndonesiaUniversity of Johannesburg The Indonesian government is trying to reduce the poverty rate, among others, by encouraging investment sourced from within the country and abroad and increasing the number of micro, small and medium-sized businesses. However, until the end of 2020, the category of poor people in Indonesia is still relatively high, about ten per cent of the total population of Indonesia. This research problem encouraged the authors to examine the role Domestic Investment (DI), Foreign Investment (FI) and Micro, Small, and Medium Enterprises (MSMEs) to reduce poverty in Indonesia. This is also because there has been no previous Indonesian research involving the four variables with data from 2010 to 2020. This study used quantitative methods to determine the impact of DI, FI and MSMEs on the magnitude of poverty. Data combining time series and cross-section data is analyzed using the least square panel method. The results of the study showed that poverty would decrease when there is an increase in domestic investment, an increase in foreign investment, and an increase in the number of micro, small and medium-sized enterprises in Indonesia. https://ieeca.org/journal/index.php/JEECAR/article/view/1072DomesticForeignMSMEInvestmentPoverty
spellingShingle Herman Soegoto
Suryatno Wiganepdo Soegoto
Daniel Francois Meyer
The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia
Journal of Eastern European and Central Asian Research
Domestic
Foreign
MSME
Investment
Poverty
title The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia
title_full The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia
title_fullStr The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia
title_full_unstemmed The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia
title_short The role of domestic investment, foreign investment and the number of Micro Small and Medium-Sized Enterprises to reduce poverty in Indonesia
title_sort role of domestic investment foreign investment and the number of micro small and medium sized enterprises to reduce poverty in indonesia
topic Domestic
Foreign
MSME
Investment
Poverty
url https://ieeca.org/journal/index.php/JEECAR/article/view/1072
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