The Effect of BPJS Employment and Average Household Consumption on Poverty in 2017-2021
DOI:
https://doi.org/10.65886/ijde.v1i3.54Keywords:
Poverty, BPJS, Average householdAbstract
This study analyzes the impact of BPJS Ketenagakerjaan (Social Security for Employment) participation and average household consumption on poverty levels in Indonesia during the 2017–2021 period. Using a quantitative approach with panel data from 34 provinces, the study finds that an increase in the number of BPJS PBI (Contribution Assistance Recipients) participants has a positive and significant correlation with poverty. This finding indicates the program's success in identifying and reaching poor and near-poor populations—the primary target groups—suggesting that rising participation reflects improved identification of vulnerable groups. In contrast, average household consumption shows a negative and significant effect on poverty levels, affirming that increased consumption is associated with reduced poverty and reflects better economic welfare. The regression model used explains approximately 33% of the variation in poverty levels and is statistically significant. The results highlight the importance of a cross-sectoral approach to poverty alleviation, where social protection programs like BPJS PBI should be integrated with strategies to boost household consumption and income. Recommended policy implications include routine verification and validation of BPJS PBI recipients, strengthening broader social protection networks, promoting productive consumption, and conducting evaluations based on multidimensional indicators. The study suggests the use of micro-level data and causal estimation techniques in future research to provide a more comprehensive understanding of the complexity of poverty in Indonesia.
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