The Effect of Migration, Land Conversion, and Village Funds on Strengthening Agricultural Economy and Reducing Rural Poverty in Indonesia

Nur Imam Saifuloh, Nursini, Sabir, Anas Iswanto Anwar


This study examines the problem of rural poverty, which shows a more severe picture than urban poverty in terms of the number of poor people, poverty depth, and severity. The agricultural sector drives economic activity in rural areas, so this variable is used as a medium to reduce existing poverty problems. To uncover this problem, we collected secondary data from all provinces in Indonesia except DKI Jakarta Province. The data were then analyzed using a structural model through R software. The results of this study revealed that the agricultural sector could not reduce rural poverty. Migration has reached its peak, so many people who migrate do not necessarily reduce rural poverty. This situation is exacerbated by the massive conversion of agricultural land to industry. If the government wants to reduce rural poverty, it should be serious about improving the agricultural sector so that it grows, is competitive, and of high quality, not just giving village funds to every village. It aims to balance the structure of the economy and labor in addition to highlighting Indonesia's specific traits as an agricultural nation.


Keywords: migration, land conversion, village fund, agriculture, rural poverty.




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