Identifying Increasing Poverty in Indonesia: Does the Human Development Index and Unemployment Affect Poverty in Indonesia?

Abstract

This study aims to see the influence of the relationship between human development index (HDI) and unemployment in Indonesia. This research was conducted in the field (field research) with an approach that combines qualitative and quantitative. A qualitative approach is used to understand the context and deeper details of individual experiences, views, and interactions related to poverty, HDI, and unemployment in Indonesia. Quantitative methods use panel data regression. The results showed that the fixed effect method is the best model to see the effect of the human development index (HDI) and unemployment on poverty in Indonesia. The human development index negatively and insignificantly influences poverty in Indonesia. Unemployment has a positive and significant influence on poverty in Indonesia. This research contributes to the government improving workforce skills and preparing employment through foreign and domestic investment policies. The government should improve workforce skills and prepare employment through foreign and domestic investment policies.