SOCIO-ECONOMIC FACTORS AFFECTING POVERTY IN BALI PROVINCE, INDONESIA

ABSTRACT The issue of poverty is still a strategic development issue carried out by the Bali Provincial Government. The poverty reduction efforts have been carried out by the regencies/cities of Bali Province with various development programs, but the number of poor people still shows that there is a level of poverty inequality between regencies/cities in Bali Province. This study aims to examine and analyze the influence of social and economic factors on poverty levels in the Bali Province, Indonesia. The social factors in question are population density, unemployment rate, education, and life expectancy. While several economic factors studied included investment, income distribution, and contribution of the agricultural sector. The data in this study are panel data covering socio-economic data and poverty levels in nine regencies/cities in Bali Province during the period 2007-2017. Data analysis was carried out with a quantitative approach using panel data multiple regression methods and equipped with descriptive analysis. The results of the study showed that education, investment, and the contribution of the agricultural sector has a negative effect on poverty levels. Population density, unemployment rate, life expectancy, and income distribution has a positive effect on poverty levels. Suggestions to policy makers, first, the regencies with low investment levels (Bangli, Karangasem, and Jembrana Regencies) to make innovative breakthrough efforts to attract investors to invest according to the potential of each region to support the sustainable development of Bali; and second, the consistency of pro-poor principles of social assistance spending policies. KEY WORDS Poverty level, population density, unemployment rate, education, life expectancy, investment, income distribution, contribution of agricultural sector.