From Growth to Equity: Assessing Indonesia’s Economic Development Strategies and Their Impact on Poverty Alleviation

Abstract

This paper evaluates the effectiveness of Indonesia’s economic development strategies in achieving poverty alleviation and promoting social equity, with a particular focus on rural and marginalized communities. Over the past few decades, Indonesia has experienced significant economic growth, but this growth has not been equally distributed, with vast disparities in income, education, and access to basic services between urban and rural areas. The study examines key economic policies and programs implemented by the government, including infrastructure development, rural poverty reduction initiatives, and social welfare programs aimed at addressing inequality. By analyzing these strategies through a lens of economic justice, the paper assesses their impact on reducing poverty, improving income distribution, and fostering social mobility for marginalized groups, such as indigenous peoples, women, and rural farmers. The paper also investigates the role of public investment in education and healthcare in enabling upward social mobility. While recognizing the achievements of Indonesia’s economic development, the study identifies gaps in equity and access that hinder broader social inclusion. It concludes with recommendations for improving policies that prioritize inclusive growth, promote sustainable development in rural areas, and address deep-rooted structural inequalities.