Rural Poverty and Economic Justice: Evaluating the Effectiveness of Indonesia’s Agricultural Policies

Abstract

This paper evaluates the effectiveness of Indonesia’s agricultural policies in addressing rural poverty and promoting economic justice in rural communities. Agriculture is a key sector in Indonesia’s economy, yet rural areas continue to experience high levels of poverty, with limited access to resources, education, and healthcare. The study critically examines the government’s agricultural policies, particularly those aimed at increasing productivity, improving access to markets, and enhancing rural development. The paper assesses the impact of initiatives such as the Village Fund Program, agricultural subsidies, and rural infrastructure projects on the livelihoods of smallholder farmers. Drawing on data from rural communities across Indonesia, the study highlights the gaps in policy implementation, including insufficient support for sustainable farming practices, inadequate credit access, and the concentration of agricultural land in the hands of large corporations. The paper also explores the role of land reform and access to fair trade markets in reducing rural poverty. The findings suggest that while some policies have had positive impacts on rural incomes, the root causes of rural poverty—such as land inequality, market access, and the lack of social services—remain largely unaddressed. The paper concludes by proposing policy reforms focused on sustainable agriculture, rural infrastructure development, and targeted poverty alleviation programs that prioritize the needs of smallholder farmers.