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E D I S I 0 2 T A H U N X V I I 2 0 1 1 The first topic is the determinants of multidimensional poverty
for household, with special attention given to operationalise conceptual thinking of multidimensional poverty. The second
topic adopts multiple correspondence analyses MCA in order to construct an index which better reflects poverty
measurement. The third topic looks at how multidimensional poverty index can play a major role in observing whether
people are trapped in poverty over long periods to establish the extent of chronic and transient poverty in Indonesia.This
paper estimates the incidence of multidimensional poverty to reach higher level compared to monetary poverty. Two types of
poverty are quite positively correlated and have similar trend. It is also found that chronic poverty has characterised the pattern
for the long run.
Keywords: Multidimensional poverty, chronic poverty, transient poverty, multiple correspondence analyses.
I. INTRODUCTION
Several definitions of poverty have prior conception of welfare, the choice of a “poverty line” divides the population into those
who have an adequate level of welfare and those who do not. Traditional poverty measurement has been receiving criticism
in defining welfare attributes. Sen 1976 and Townsend 1979 have altered the perception of how poverty is conceptualised.
This results in alternatives to the traditionally accepted poverty measures Tsui, 2002.
The multidimensional approach to poverty has been discussed by several authors. Practical research that attempts to apply the
new approach include the UNDP’s Human Development Index 1994 as well as more general research that considers multiple
dimensions of poverty simultaneously Sahn 1999 and Duclos et al., 2006. Supporting evidence for the multidimensional
measurement of poverty is abundant. The justification behind the measurement of more than one dimension of poverty is
based on the idea that income indicator is incomplete and its shortfalls lead to inaccurate estimations of poverty Diaz, 2003.
When choosing the measure, it is important to ensure a fit between the properties of a poverty index and policy objectives.
This suggests that different indices lead to different images and thus the poverty picture can be highly dependent on the
indicators chosen. Consequently the poverty measurement field is littered with various measures each assessing a particular
dimension of poverty.
This research proposes exploration of multidimensional poverty measurement in Indonesia which aims to examine empirically
the significance of identification and attempts to throw light on the construction of multidimensional poverty indicator. In
addition, analysing dynamic patterns of poverty will produce major benefits for being able to formulate efficient policy
toward specific areas which are likely to benefit poor people. Concern for poverty is therefore of fundamental importance.
Indonesia is considered as good examples in reducing poverty incidence, although there has been no in depth analysis on
establishing to what extent poverty persists over time and characteristics associated with multidimensional poverty.
II. SOCIAL AND ECONOMIC DEVELOPMENT IN INDONESIA
