Title:
ANALYSIS OF ECONOMIC POTENTIALS AND CONTRIBUTING FACTORS OF RURAL POVERTY IN THE AREA OF TOMINI BAY, SULAWESI, INDONESIA

Authors:
Fitri Hadi Yulia Akib, Muhammad Amir Arham, Silvana Suratinoyo, Indonesia

Abstract:

Tomini Bay area possesses several resources potentials, in addition to resource potentials, the heterogeneous community can serve as social capital for development. Nevertheless, this area has become one of the poverty enclaves in the eastern part of Indonesia. This research was conducted to analyze the economic factor of each region as the basis of developing the Tomini Bay area to reduce the rural poverty rate. The present work also analyzed the contributing factor of rural poverty in the area of Tomini Bay. It relied on an LQ and panel data regression analyses in 2011 - 2020 and covered ten regencies/cities of three provinces in the Tomini Bay area. Significant findings of this study were as follows: 1) per capita income, unemployment rate, average years of school, the productivity of female and primary sector laborers significantly cut down rural poverty rate; 2) the contribution of the agricultural sector, workers’ education level, i.e., primary school, secondary school, and high school, and a number of family dependents impacted the increase in underprivileged people. It was because the distribution of laborers in the agricultural sector was still quite large. At the same time, farmers’ land ownership was only 0.5 ha on average, not to mention the education level was relatively out of sync with the structure of the available jobs; 3) the contribution of the non-agricultural sector to the economy, access to high school education (net enrollment rate), university graduates, as well as laborers in secondary and tertiary sectors were not impactful on poverty.