THE INFLUENCE OF THE PKH AND BPNT PROGRAMS ON POVERTY RATE PERCENTAGE IN CENTRAL JAVA PROVINCE: A QUANTITATIVE ANALYSIS
DOI:
https://doi.org/10.65886/ijde.v2i02.29Keywords:
Poverty, PKH, BPNT, Panel Data, Fixed Effect Model, Social AssistanceAbstract
This study aims to analyze the influence of the Family Hope Program (PKH) and the Non-Cash Food Assistance (BPNT) on poverty levels in Central Java Province. Employing a quantitative approach and panel data from 35 regencies/municipalities over the period 2021–2023, the study applies panel regression methods using the Fixed Effect Model (FEM), selected based on the results of the Chow, Hausman, and Lagrange Multiplier tests. The findings indicate that PKH has a negative and significant effect on poverty, suggesting that the program is effective in reducing poverty levels by improving access to education and healthcare for poor households. Conversely, BPNT shows a positive and significant effect on poverty, suggesting that food aid is not sustainable in nature and has not yet succeeded in fostering economic independence among beneficiaries. These findings underscore the importance of reformulating social assistance program designs to not only be charitable but also oriented toward empowerment and sustainability. This study supports the theory of dynamic poverty as well as the concept of social safety nets in the context of evidence-based poverty alleviation.
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