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3/20/2012POLITEKNIK PERTANIAN NEGERI PANGKEP 1

THE STRATEGY TO SOLVE

POVERTY PROBLEM IN INDONESIA

BY : MUH. ARDIANSYAH


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Poverty is a one of the biggest problemfaced in Indonesia, people are categorizedas the poor when their income below the

standard level of income. Most of themcannot fulfill their daily needs. Since 1945,poverty has become difficult problem for

Indonesia, but until now this problemcannot be solved by the government.

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POLITEKNIK PERTANIAN NEGERI

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The number of poor people in ourcountry from 2005-2009

year Population (million)Poor

people(million)Percentage ofpoor people

2005 219,852 35,1 15.96%

2006 222,747 (1,32%) 39,05 17.53%

2007 225,642 (1,30%) 22,1 9.79%2008 228,575 (1,30%) 22,1 9.67%2009 231,547 (1,30%) 34,96 15.1%

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Strategy that has been implemented by thegovernment to reduce poverty

Farming Business Credit (KUT), it takes Rp. 8.4trillion in 1998 , but failed because it did not reallyempower people so that as of September 2000 ,loan of KUT reached 6.169 trillion (73.69%) from

loan disbursements. PKD - PWT in NTT, launched in South Sulawesi,

North Sulawesi, West Nusa Tenggara;, but failedbecause the process of planning, execution and

delivery of assistance is dependent on TPD (VillageImplementation Teams). Subsidy (fuel, fertilizer, etc.) the government does

not effectively help people escape from povertybecause it enjoyed by rich people.

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1st strategy is to give power to the poorby developing their skill to make them asthe important contributor in economic

development.2nd strategy is to provide job vacancy to

the society especially for the poor.3rd strategy is by improving distribution of

national income for poor people

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Why we should implement that

program Development Skill of Society, In the

midst of global changes, improving

the competitiveness is somethingthat is not easy. Moreover, our peoplehave been resistant to changes.Therefore, skill developmentcommunity is in need so that theproblem of poverty can be solved.



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program provide job vacancy to the society

especially to the poor, provide jobs

in all areas that can help peopleout of poverty are not onlygovernments responsibility but

also private industries, nongovernmental organizations(NGOs) and community itself.



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program Improve Distribution of Funds for the Poor,

the data from the World Bank states that 40%of people with lowest incomes earn only 15%

of national income; 40% with earningsthereon, received 32% of national income,and 20% of the highest income groupreceived 53% of national income. This shows

that the distribution of funds to thecommunity need to be corrected and setfairly.



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WHATISTHEMAINAIMOFTHISPROGRAM

The main aim of this program is toalleviate poverty in our country . Themain causes of poverty in this nation

are lack of skill or capabilities of thepeople, lack of jobopportunities/vacancies, or bad

distribution of the state fund to thepoor. Through this proposal, the maincause of poverty in this nation can be

overcame.

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POLITEKN

IKPERTANIAN

NEGER

I

PANGKEP


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The first recommendation aimed at improvingeconomic growth. This synergy can beachieved with policies that accumulate

domestic capital, foreign investment andinvestment policy aimed at a productiveindustrial activity.

The second recommendation is the policy of

strengthening the national education systemand training-oriented employment.

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The third recommendation is apolicy that allows for access tovoice their aspirations and opinions

of the poor. The fourth recommendation is thepolicy governing the distribution of

funds to the poor must be fair andequitable.

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CONCLUSION

The main concept developed in this paperinvites to make the problem of poverty assystemic issues, that should be accomplishedthrough three important steps.

1. The first step is to empower poor people bydeveloping skills / capabilities of the poor to

later become an important contributor toeconomic growth.



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2. The second step is creating jobopportunities for societies. Efforts to create

and provide jobs in all areas that can helppeople out of poverty are not onlygovernments responsibility but also private

industries, non governmental organizations(NGOs) and community itself. Privateindustries for example through CorporateSocial Responsibility (CSR), conducting abusiness partner with small and middlescale businesses that can grow and createnew jobs for the community.



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3. The third step is improving

distribution system of nationalrevenue to the poor. Right now

the problem of poverty in

Indonesia have not beenresolved due to the inequities in

the distribution of funds.



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thank you very much

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