POVERTY IN SIAK DISTRICT, RIAU PROVINCE: ITS ISSUES AND CONTRIBUTING FACTORS

1 2 3 Wan Muhammad Yunus 4 , Maryunani , Khusnul Ashar , dan Ghozali Maskie

Faculty of Economics and Business, Brawijaya University Email: 1 yunus.wan@yahoo.com

Abstract

This research aims to determine and identify contributing factors to poverty in Siak District based on poverty level guidance. This research took place at Siak District by involving 273 respondents. They are classified into several groups; very poor, poor, near poor and susceptible poor. Multinomial logit is taken as an analysis tool for the research. It describes that poor probability to each level is different and more affected by conditional factors: (i) very poor: land availability and its ownership, weather, infrastructure, public accessibility, size of the family, dependency ratio, asset ownership and job status/level; (ii) poor: social capital and ethnical background; (iii) near poor: land ownership, weather, age, and level of education; (iv) susceptible poor: social isolation, size of the family, asset ownership and job level.

Keywords: Poverty Level, Multinominal Logit, Siak District

(6) have no accessibility to electricity; (7) use

1. INTRODUCTION

wood and charcoal as a main material tohome basic fuel; (8) power consuming frequency is

Poverty associated with the main three concepts (Krisnamurti, 2006) are (1) Poverty

less than two times a day; (9) inability to itself describes inability of personal or family or

consume meat/chicken/milk in a week; (10) inability to buy a new clothes to each member

social group to fulfill their basic needs, (2) inequality of resource distribution to fill their

of family; (11) inability to access of health daily life needs, (3) vulnerability level of

treatments and services in polyclinic or personal and group to be poor or worse level

puskesmas ; (12) major field job of family is condition.

small farmer/fisherman; (13) low education level (elementary junior school gradute or

Indonesia Statistical Bureau defines lower) were obtained by head of household; poverty by the condition of people who are

(14) minimum asset ownership which less than consuming less than 2100 calories per capita a

Rp.500.000 or lower.

day. World Bank defines poverty by the Each level of poverty has its own listed condition of people who are living by less than

$1 per day to low income countries, $ 14 a day indicators : (i) susceptible poor is classified to family who fills less than 9 indicators from 14

to high income countries (developed countries) and $2 a day to developing countries.

lists; (ii) near poor is classified to family who fills 9-10 indicators and local indicators; (iii)

In another hand, Indonesia Statistical poor is classified to family who fills 11-13 Bureau has different indicators to classify poor

indicators; (iv) very poor is classified to family family which divided it into 4 categories are

who fill 14 given indicators and local susceptible poor, near poor, poor and very poor.

indicators.

The indicators include (1) wide floor of home

There are 9 main points of poverty (Simeru home floor made from soil/wood shelter/low

to each member of family is less than 8 m 2 ; (2)

in Krisnamurthi, 2006): (1) inability to fulfill primary needs (food/cloth/shelter); (2)have no

quality materials; (3) home partition or wall made from low quality materials; (4) have no

accessibility to the daily basic needs (health, availability of proper discharge infrastructure

education, sanitation, clean water and proper transportation); (3) have no guarantee or future

(lavatory) and its sanitation; (5) have low accessibility to reach sanitary and clean water;

insurance caused by no investment fund to

Yunus, Maryunani, Ashar & Maskie, Poverty in Siak District … 91

education and family; (4) individual or mass consume clean water, (8) low coverage of land vulnerability; (5) low quality of human

ownership, (9) low quality of life environment resources and low natural resources; (6) social

and limit access of natural resources, (10) low inclusion; (7) have no accessibility to gain

coverage to self safety, (11) low level of further labor field or proper job; (8) inability to

involvement or participation, (12) higher load work caused by physical or mental disorder; (9)

of demography, (13) low quality of good disadvantage of social condition.

governance

inefficiency and inneffectifity of public services, high corruption

caused

The general issue of poverty is linked to

and low sosial insurance.

the low accessibility of natural resources. Accessibility is the main opportunity to create

Most implemented poverty reduction and boost production process. Access limitation

program in Indonesia run under the flagship of involved the access to own technology in their

Millenium Development Goals (MDGs) . hand, information, credit, health treatments and

Through the program many projects and efforts services,

dedicated to whom are living by less than $1 a telecommunication. Todaro and Smith (2006)

day. MDGs focused on poverty alleviation upon define the cause of poverty by various

the social development and economic limitations are; (i) scarcity of job opportunities;

development. Implemented program through (ii) restricted accessibility to production factors;

MDGs was finished on 2015. However in some (iii) low level of asset ownership

particular sectors of MDGs did not offer any advance or optimal progress. Based on various

Based on case study research in Semarang research started by 2013 to 2015 the number of Central Java, Ningsih (2011) claims that dead mother and number of a dead baby in characteristic of urban poverty in Semarang developing countries remained high by 1: 48 of caused by several factors are; low education the birth process. It means the number still level (elementary school or lower) were dominated by 99% compared to developed obtained by head of household and generally countries by 1: 1800 of birth (Kaslam, 2015). their field work major is farmer and they are

responsible for more than 3 members of the There is a further program to optimize family. In addition, there is inequality

through Sustainable distribution of fund assistance to poverty group.

MDGs

Development Goals (SDGs) starts by 2016 to In another hand, cultural dimension value, they

2030 and hold 17 goals. The main priority of show difference which poor people have

program engaged in human development which positive cultural values include philosophy of

stands on three pillars is (i) education, (ii) life, positive work values, well time

health, (iii) environmental development (United management and the harmonic relation between

Nation, 2015). The goal of human development human and nature. In addition, Raihana Kaplale

is linked to long term alleviated poverty (2012) asserts that contributing factors to

program which focuses on increasing the poverty dominated by several issues are; low

quality of education, health, and human life productivity of land and plant, minimum access

environment.

for further labor fields, low education level, Based on data since 2006 to 2011 poverty high dependency level to natural resources or ratio in Siak was declined. Its trend was in line local resources, high cost of tradition or ritual with development in both province and national process and limited access to capital (cash). level. However, the percentage of poverty

State Ministry of National Development reduction trend in Siak seems not optimal. It Planning (BAPPENAS) defines poverty by

was desribed by 5,45% in 2006 and 5,29 % in several indicators which are; (1) low

2011. By percentage, it was declined but by the availability and quality of foods, (2) low quality

real potrait in the field many people whose have and low accessibility to health services and

been living poor remained high. More details threatments, (3) low quality and low

can be seen in Figure1.

accessibility to educational services, (4) job

opportunities restrictiveness, (5) low level of coverage to business assets and existing income gap, (6) low accessibility to own home living and proper sanitation, (7) low accessibility to

92 International Journal of Social and Local Economic Governance (IJLEG)

Vol. 2, No. 1, April 2016, pages 90-102

Table 1 shows the highest number of poor stands to susceptible poor (fourth group) composed of 9.375 family groups. In another hand, the lowest number of poor stands to very poor (first group) composed of 2.618 family groups. The details are described in Table 2.

Table 2. Number of Individual Poor in Siak District

Kecamatan

Group 1 2 3 4

1.625 1.329 3.423 Source: BAPPEDA, Siak District, 2013

1 Minas

2 Sungai Mandau

Figure 1 Macro Poverty Ratio in Siak District Compared to Province and National Level

Based on the census was held by PPLS in

5 Kerinci Kanan

2011 poverty level in Siak is classified into 4

categories: very poor (first group), poor (second

group), near poor (third group), susceptible 1.113 poor (fourth group) which composed by 17.300

8 Lubuk Dalam

family groups. PPLS’s data census is used as

9 Koto Gasib

poverty data guidance by National Team for

The Acceleration of Poverty Reduction

(TNP2K) in Siak District, Riau Province. While 2.811 in field implementationTNP2K was minimized

11 Sungai Apit

12 Bunga Raya

the previous categories to three main categories

13 Sabak Auh

(I,II,III), which the fourth group is expelled.

More details can be seen in Table 1.

Table 1. Number of Classified Poverty : Very

Poor (First Group), Poor (Second Group), Near

Source: BAPPEDA Siak District, 2013

Poor (Third Group), Susceptible Poor (Fourth It seems similar number among the poor Group)

family group and individual while susceptible

No Kecamatan

Group

poor (fourth group) is the highest by 32.388

1 2 3 4 persons. By the whole number of the private

individual who are living poor in Siak District

2 Sungai Mandau

reach 73.369 persons. Even the trend was a

decline in the previous years but it does not

mean implemented program is successful to boost poverty reduction.

5 Kerinci Kanan

Poverty Alleviation program both in national and local levels hold its barriers,

especially in field implementation. Along the

8 Lubuk Dalam

running program, the plan pro poor projects

9 Koto Gasib

tends to focus on the economic point of view

10 Mempura

and aside the others. People are located as an object rather than a subject of development

11 Sungai Apit

while it also ruins the empowerment principle.

12 Bunga Raya

One of the contributing factor cause

13 Sabak Auh

unoptimal outcomes of the poverty program is

14 Pusako

“Top-Down” approach by minimizing the size

Total 2.618 2.654 2.653 9.375

of local government’s involvement in policy

Source: BAPPEDA Siak District, 2013

formulation. ”Top-Down” strategy program

Yunus, Maryunani, Ashar & Maskie, Poverty in Siak District … 93

reputed fails to reflect a regional and local gap assistance to local group business (KUBE), in Indonesia. As a consequence, there are high

establish agribusiness program and the failures of the program to aim its goals and

following projects. In another hand, considering moreover, the worse thing is that the program

the type of people in Siak District, they do not can be stopped immediately in the middle of the

only need more direct fund from the program, process.

but also the following projects and strategies that can stimulate them to be more involved and

Mostly program is approached by state

create progressing results.

driven and money driven formula to serve the people and community. Fund assistance and

Welfare economics is a rational process to social mobilisation are moved by people

free people from any constraint to gain empowerment campaign. In another hand,

progressing results. Social welfare can be political will affects the successful and sustain

measured by several factors: levels of living, the agenda of poverty alleviation. While strong

basic needs fulfillment, quality of life, and political and personal capture can stimulate a

human development. In addition, Amartya Sen vulnerability of the program and its goals. The

(1992) asserts capability approach to the most important thing needed in sustaining the

measure of living standarts. He said, ”the poverty program is consolidation and political

freedom or ability to achieve desirable institutionalization (Eko, 2012).

“functionings” is more importance than actual Based on the previous explanation then

outcomes” (Sen, 2002).

Local Medium Term Development Plan Nicholson (1992) claims that the main (RPJMD) in Siak District in term of 2011-2016

principal of social wealth is the maximum enclose the main mission to poverty reduction

condition where nobody loses from the social program by empowering people centered

transaction. While Bornstein (quoted in economic (ekonomi kerakyatan), empowering

Swasono) proposes performance criteria in village economy, maximizing the labor sectors,

measuring social welfare by considering several controlling demography and creating an equal

values: output, growth, efficiency, stability, economic distribution. More details about the

security, inequality, and freedom which have to missions described by the following goals are:

be correlated to social preference. In another

1) increasing level of social wealth in people 2) opinion, Etzioni (1999) asserts about personal establishing equal distribution, 3) increasing

privacy by adding privacy as a social license. It level of economic wealth in rurals, 4)

means private privacy is a further mandate from establishing people centered economy and

people/group and it is bounded by social boosted small medium enterprise,

guidance and regulation. Thus, individual establishing local economic enterprise as a main

position as the social creature must be vital support, 6) increasing number of labor

highlighted in the economy, especially in the fields and higher quality of human resources, 7)

process of economic development and create increasing labor wealth standarts and its

social wealth.

services, 8) establishing good and proper Dye and Thomas (2005) propose that administration of demography and local civils, people welfare in middle-low class can be

9) Mapping civils based on age, gender, represented by their life indicators include profession, its spread, 10) establishing proper decreasing the number of poor, increasing their civils data information and management. quality in health services and threatment,

Siak government has been implementing increasing the level of education, increasing the several project under the flagship of poverty

number and quality of production. Those cover reduction program including fund supply to

an indication progressing result to mid-low distribute rice assistance to poor, fund supply to

class. More specific Todaro proposes support the implementation of National

explanation by calculation formula as follows: Programme for People Empowerment (PNPM),

W = f(Y,I,P). Y means income per capita, I establish oil palm land to people, local

mean imbalance/unequal, P means absolute productive economic business (UEP), rural

poverty. The variable difference is significant, credit based on business platform (UED-SP),

thus requires the detail calculation in sizing empowerment program for people by group

welfare.

mobilization (POKMAS), cheap market, fund

94 International Journal of Social and Local Economic Governance (IJLEG)

Vol. 2, No. 1, April 2016, pages 90-102

b. An analysis of the contributing factors resources, proper fiscal budget to support its

Siak District has a potential of natural

affected to the existence of poor family in growth above the average of national growth.

Siak District

But in another side, a number of poor remains a

c. Implication of policy tools and formulation high especially susceptible poor group. Thus,

to increase poor family’s life quality stressing focus on the complication of a poor family in the frame of the macro economy and

Table 3 . Village Condition for Sampling endowment factor in Siak Distrik trigger the

Purpose author to elaborate more deeply. The main

Number

purpose of the research is to analyse the

Poor

of Poor

contributing factors to poverty in Siak District

Region

categories Villages Family

relies on their poor level. (Head

2. RESEARCH METHODOLOGY

Siak District is taken as a main location

Tualang

Sebatang

object of research according to several

Barat

considerations. First, Siak is one of the district

2 Agriculture Poor

Jatibaru 232

in Riau Province which remains has a high

number of poor while in another hand its

Bungaraya

Merambai

potential natural resources were huge, thus in

the era of decentralization it gains higher local

Kanan

revenues. In addition, pragmatical reason also

includes by considering the content of RPJM

Kerinci

Bhakti

Siak District by 2011-2016 enclose the main

Kanan

mission to poverty reduction program by

empowering people centered

(ekonomi kerakyatan), empowering village

Sungai Apit

economy, maximizing the labor sectors, controlling the load of demography and creating

Secondary data are choosen from multiple an equal economic distribution.

documents and notes related to the topic. The documents involve data from Regional Work

This research uses purposive sampling in considering the number of poor families. Some

Unit (SKPD) Siak District especially the description data about poor family problems

villages represent location with the highest list number of poor and anothers represent location

and its spread.

with the lowest list number of poor. Ten Then analysis method inserts and relies on samples or respondents will be taken as random

Multinominal Logit based on poor’s level status sampling to each category of poor family in

in Siak District. Choosen Method considers each village. It coveraged very poor, poor, near

about more than two categories to each poor and susceptible poor by conditionality if

probability and it was mutually exclusive. Kim one village has less than 10 of a poor family in

and Kim (2011) made reference to McFedden each category. Thus, all of them will be taken

(1975) assert that Multinominal Logit Model as a sample object. The details about the village

developed by logit model which responses of are described in Table 3.

each variable exerts various categories by including every poor, poor, near poor, and

Accumulative data methods use both susceptible poor. Prinzie and Poel (2008) survey and documentation. Survey is informal

tools to gather any pieces of information and support the previous statement by assert that multinominal logit model is designed to

identify the highest proportion by the direct interpret various responses of the variable, meeting to the respondents. Survey is supported especially the relation among relative variable by questionaires and it requires to elaborate and expalanatory variable. More details into the some points: following determinant formula:

a. Description about the poor family’s

characters in Siak District

Yunus, Maryunani, Ashar & Maskie, Poverty in Siak District … 95

Yi = α+ β 1 D 1i +β 2 X 1i +β 3 D 2i +β 4 D 3i +β 5 D 4i +β 6 D 5i +

Table 4. The Outcomes of Multinominal Logit

β 7 D 6i + β 8 D 7i + β 9 D 8i + β 10 X 2i + β 11 X 3i +

to Very Poor Family and Poor Family

β 12 D 9i + β 13 D 10i + β 14 X 4i + β 15 X 5i + β 16 X 6i +

Very Poor Poor

P Value ME P Value

Dependent Variable consists of 4 variables as

Land

2 follow: Availability and Its

a. Y1: Very Poor

Ownership

Y2: Poor, 0,284

c. 0,918 Y3: Near Poor, dan

d. Y4: Susceptible Poor.

Independent Variable

variablesas follow:

9 Social Capital

0,888 -0,108 0,032*

a. D 1: Isolation

10 Family Size

b. X 1: Land Ownership

11 Dependency Ratio

0,001* -0,006 0,772

c. D 2: Weather

d. D 3: Leadership

13 Asset Ownership

0,063** -0,058 0,211

e. D 4: Equality

f. D 5: Infrastructure

g. D 6: Distribution

16 Job Status and Level

h. D 7: Accessibility i.

17 D Health Status and Level

Social Capital

j. X 2: Family Size Ratio

18 Ethnichal Background

k. X 3: Dependency Ratio Source: Processed Data, 2015. Exp: *

l. D 9: Gender significant at level 5%; ** significant at level

m. D 10: Asset Ownership

n. X 4: Age o. X 5: Level of Education

3.1. Very Poor Family Group

p. X 6: Job Status and Level Land availability and its ownership factor q. D 11: Health Status and Level

have been positively affected by the marginal r. X 7: Ethnical Background

effect to 0,060. It means respondent with no land ownership can be classified in increasing

3. RESEARCH OUTCOMES

potential to be poor by 0,060. Based on statistical data by the average very poor family

Multinominal Logit describes various and group has no land ownership. Inavailability or conditional types of poverty in Siak District. It

inability in land ownership makes them less covered the variables and its number. More

productive, thus, their profession restricted into details are described in Table 4.

farm labor.While more opportunity to own land Very poor seem more vulnerable to some

can stimulate them in raising income. particular factors are the availability of land,

Previous research belongs to Chaudry et all weather, infrastructure, public accessibility,

(2009) claim that land ownership as the main family size, dependency ratio, asset ownership

factor to expel both poor family and private and job status/level. While poor category more

from poverty. Characteristic of land availability affected by social capital and ethnical

is measured by wide of the land size owned by backgroud. Near poor dominated by the issue of

the family. According to the research, the land availability and ownership, weather and

highest number of poor stands to whom has level of education. While susceptible poor

noland ownership by 58,3%. 27,1% represents dominated by isolation, family size, asset

family whose owned the land by 1-1,5 ha. They ownership and job status/level.

found poverty size close to 18,9 % means the number of the family has no land ownership.

96 International Journal of Social and Local Economic Governance (IJLEG)

Vol. 2, No. 1, April 2016, pages 90-102

An unequal form of benefits shares in Similar to Sawada, Hulten et all (2006) agribusiness brings them to be poorer. The form

propose about the importance of infrastructure relies on negotiating process among land owner

to the effort of poverty reduction. Since 1972 to and labor. White and Wiradi assert that profit

1992 was infrastructure massive development share is not only represented by equal

era in India and it took sollow growth model as number/nominal but also in some cases labor

guidance. Massive infrastructure covered roads can gain 1/3 from the whole profit they worked

and electricity lines as the main program. It for. In another opinion, Scott (1972) claims that

invites more demand of labor and capital ex colonial region in South East Asia creates a

circulation. In addition, it also boosts the wide gap among the land owner and it brings

existence and number of manufacturing impact to the balance of exchange disparities.

industries. It means there is a strong correlation Scott makes the stressing point that in some

between infrastructure and poor people by rurals region exist wider gap, moreover the

connected them to the market. Growth impact labor welfare is strongly dependent on landing

from massive infrastructure has a positive slope owner policy.

to raise income and bring them to get more wealth. Premise explanation also similar to

While weather factor has a negative slope Besley and Burges (2003) to very poor family by marginal effect close to -

0,085. It defines that good weather (rain, Winters (2014) supports the previous temperature, sunlight) invite the labour to raise

argument by assert that infrastructure quality is income, increase their productivity and invite

a vital part of the process of wealth more demand of labor. Iyer and Topalova listed

transmission. Infrastructure facilities are rain rate as the main factor affected family

intercconnecting people by means it also welfare. (Dell et all 2014). Less rain rate invites

interconeccting their economic cycle and giving less productivity and less income. In the end, it

a chance to create international trade. brings family into poor or worse condition.

raise income by specialization, boost economic scale, and in the

Infrastructure

can

On the other hand, infrastructure also has a end, it will stimulate to create full employment. negative slope to very poor family by marginal Shortly, the main purpose of infrastructural effect close to 0,111. It indicates that increasing development is in line with poverty reduction. infrastructure will decrease their potential to be

poorer. Increasing quality and quantity of Public accessibility has a positive slope to infrastructure in the region will invite more

poverty by its marginal effect value close to accessibility

0,068. It means increasing number of public Infrastructure can be measured by the

accessibility possibly raise poverty rates. The availability of roads, irrigation pipelines,

closer they are to the public facility means bridges and supporting buildings which

closer they are to be poor. It relies on their connected them to the market. The more

characteristic of spending budget. In other connection they made to the market, thus the

words, the existence of public facilities will more potential to be expelled from poor.

lead to a behavioral change of consumption. Increasing demand for goods and services

Public facility existences include hospital, invites more demand for labor, productivity,

government administration office, and the and income.

modern market will raise their consumption. Easier accessibility means an easier way to

Sawada et all (2010) inserts probit model spend more expenditure. Moreover, an in their previous research to investigate and expensive transportation to hold public facilities compare correlation in employing irrigation also brings them to be poorer. pipelines both in the rainy season (Maha) and

dry season (Yala). The research delivers an Canto et all (2014) assume that there is a explanation that irrigation system can reduce

strong correlation between poverty and people poverty by increasing permanent income and

health. Poor people are potential to be sick and minimize the risk of transitory poverty through

vulnerable to the spread disease because of less their spending budget. In other words, the

nutrition and their inability to get closer into irrigation system can reduce the potential of

health treathments and services. Low food harvest failures in a long term dry season and

accessibility also contributes to raising poverty. high rainy season.

Thus, they claim that friendly cost

Yunus, Maryunani, Ashar & Maskie, Poverty in Siak District … 97

transportation must be implemented at the first unbalancing cost to fill their daily needs. Thus, in supporting the works of public and food

they can be poorer.

facilities. Tambunan mentions several reasons

Family size also has a positive slope to behind the high poverty phenomenon in the poverty by marginal effect value close to 0,049.

agricultural sector. First is low productivity of It describes the bigger size of a family member

farm which the number of labor farmer more is more vulnerable to be poor than smaller size

than the size of land, capital, and technology, of a family member. The bigger size of a family

thus their low income in line with low member means more costly and more unable to

productivity. Second, their education level is fill their daily needs properly. Most respondents

average low which urbans area cover 5,5 years work as a small fisherman and farm labor

and rurals cover 4,3 years. Low education level without contract support, thus, they can not

has correlated to low creativity of farmers and it raise their salary. Imbalance limit salary to

caused low employment rates. cover high cost needs brings them to be poorer.

3.2. Poor Family Group

Dependency ratio has negative slope by marginal effect value close to -0,077. It means

Social capital has a negative slope to the increasing dependency will decrease their

poor family by marginal effect value close to – potential to be poorer. Dependency ratio value

0,108. It describes that respondents whose can be obtained from comparing a number of a

handling social capital better than respondents family member with a job to the member

whose not. Listed social capital includes trust without a job. In the case of this research, a

and social networks which can help them leave number of a family member with the job more

poverty. Social capital stimulates them to be than a member without a job, thus probalility to

more linked to the community thus they gained

be poorer is decrease.Work participation ratio is bigger chance to raise income by wider one of a component of employment. Iyer and

networking, open for the business chance, get a Topalova

better job and also open for better information. participation ratio is significantly affected to

Walby (2009) claims that poverty is decrease poverty number. It means a number of

dynamic and complex, thus social capital is family member belong to the job, it gives highly demanded to insert in this case. bigger chance to raise income and fill their

Christakis and Fowler (2010) also mention that proper daily needs. Shortly, by gradual, it will

listed social networking as a family, friendship, decrease the number of poor. and informal worker communities are vital to

be improved and developed. Halpem (2010) very poor family by marginal effect value close

Asset ownership has a negative slope to

also supports the argument and listed social to – 0,087. It means the more they gain and

capital as a vital asset owned by an individual. own asset it potentially decreases their

Social capital can help them in sharing profit, vulnerability to being poorer. It similar to

information, and idea. Thus, social capital Beverly and Stephan (2014) who argue that a

invites for both social and economic number of asset and capital can help poor in

advantages.

gradually to leave poverty. In another hand social capital is easier in

In a life cycle hypothesis is explained that theory than its practice. Brook Lyndurst individual tend to gain and accumulate their

Consultancy (2010) claims that the practice of capital as long as they belong to a job with a

social capital relies on culture, local values and maximum income then they will spend it in

norms of believe in society, thus, the practical retired time. It means saving asset can help

can be vary to each society. It also related to the them to survive when they are no longer belong

ethnical background which its marginal effect to the job and it potentially decrease to be poor.

value close to 0,062. Most dominated ethnic can be found in this research is Melayu by

Job status has a positive slope to very poor means their potential to be poor is higher than family by its marginal value close to 0,064. other major ethnic such Jawa and Batak. Mostly Mostly respondents work as freelance farm people in Melayu ethnic group in this research labor with few salary and burden for the are found as poor and low education level.

98 International Journal of Social and Local Economic Governance (IJLEG)

Vol. 2, No. 1, April 2016, pages 90-102

Glichrist dan Kyprianou (2011) insert percent. Major respondents of this group are not ethnical background as main part of culture,

only involved in farm sector but also in service history, and language.Goodhart (2004) quoted

sectors include a builder, mechanical worker, in Putnam (2007) add that multivarious ethnical

porter at the traditional market to gain higher background will cause lower charge of social

income.

capital than

the

monoethnical

It is similar to the previous research background.DCLG (2010)supports through his belongs to Both (2004) which asserts that research. He found that culture is inevitable narrow land will encourage them to hand relation existed in the community. His previous another job outside farm sector and gain a research proves that British were not linked to higher salary. Mostly respondents are freelancer the other ethnic except their own. They deny for labor both in the farm sector and outside more complex interaction and integration thus, because farm sector tends to create temporary there was low interaction among ethnical work terms based on the kind plantation of groups, low assimilation of value/culture and

farmer investment.

low share information. Weather shows positive slope too by

Table 5. The Outcomes of Multinominal Logit marginal effect value close to 0,053. It means to Near Poor Group and Susceptible Poor that unsupported weather causes the bigger Group

potential to them to be poorer. In this research,

Near Poor

Susceptible Poor

No Variable ME

mostly respondents spread on some work

P Value

function such fisherman, rubber plantation

labor, oil palm farmer labor which that kind of

2 Ownership -0,070

job far away from good accessibility and

supporting infrastructure. In another hand, those

4 Leadership -0,032

jobs rely on the weather. Here, the weather has

5 Equality -0,036

a strong point to affect their economic cycle

through productivity. Duflo and Pande (2007)

7 Distribution -0,016

offer a solution by creating barrage solution in

water management. Thus, water management

8 Accesibility -0,075

can be the solution to boost productivity when

the weather changes.

10 Size of

Iyer dan Topalova (2014) propose different

argument by the claim that there is a weak

11 Dependency Ratio 0,029

direct correlation among weather and poverty.

Poverty tends to be measured through lowest

income distribution. High rainy season only

13 Asset

Ownership -0,001

transmits its effect to their model of

consumption and it always in line with income. Low productivity caused by bad weather and

15 Level of Education 0,067

0,006* -0,025

the season will encourage them to deliver crime

16 Job Status 0,014

0,624 -0,083

scene action to cover their lower income of

17 Health

current job. Cole et all (2012) propose that high

rainy season create potential disaster to farm

18 Ethnichal Background 0,003

0,908 -0,041

sector such a flood and it affects to harvest failures or lower productivity output and of

Source: Processed Data, 2015. Exp: * course it affects their income. Shortly, they significant at level 5%; ** significant at level

have not linked among weather and poverty, 10%

but they tend to build a link between weather and income.

3.3. Near Poor Family Group

Weather is not only cover both dry and Land availability has a negative slope to

rainy seasons but also about temperature near poor family by marginal effect close to

changes which contribute to farm productivity. 0,070. It describes that no land factor affect

In the previous research belongs to Dell et all their probability to be poor decrease to 0,070

(2012 and 2014) were taking location in India,

Yunus, Maryunani, Ashar & Maskie, Poverty in Siak District … 99

he found that temperature changes affect to employee residents/houses, instruments, and whole farming production. Riau as taken

materials. While non-physic investment location of this research is a region with high

training, migration potential for fire attack for years, especially in

includes

education,

program, health treatments and services and the wild forest or land. Fire and its hot smoke

labor fields. In other words, the non-physic ruin local economy and even the daily activities

instrument also namely human resource of local people. It assumes as causing reason to

investment while in return they gain a cost by lower income and create potential growth

return called wages or income. Sawada et all number of poor.

(2010) imply that head family whose gain a higher level of education and age level tend to

Age has a positive slope to near poor gain better use and operation of irrigation family group by its marginal effect value close

pipelines.

to 0, 0005. Work involvement rates affected by age and its cycle. Type of their informal major

They also make stress point to the role of job such as farm labor, fisherman, and oil palm

education to wealth level. They assume that labor is highly required for physical appearance

head family whose gain a higher education is and strength. It describes increasing age is

highly more demanded to the higher position contribute to the growth of poor. The older they

level of the job. It means that higher education mean the lower ability to do more productive

contributes to raising an income and potential to and it brings impact to their lower income.

decrease the poor number in the rural. Chaudry et all (2009) argue the previous

Raihana Kaplale (2012) supports the statement. He said that the role of head family’s

previous statement by asserting the importance age affects the condition of a whole family

of education level to decrease poverty. Shortly, member. In his previous research he found that

her previous research mentioned about poor rates and its level indicate to be lower

contributing factors of poverty and put when the head of the family is in a proper

education level as one of the vital reason of the condition (more mature age), handle more job

poverty existence. Beside she adds the factor of experiences and higher achievement of income.

lower productivity, narrow labor fields, highly It was quite different with this research

dependent on natural resources, higher tradition outcome based on a different kind of object.

cost and limited accessibility to handling cash. Major respondent of research is farm labor by means their life cycle relies on physical strength

3.4. Susceptible Poor Family Group

and age. Isolation positively contributes to its

In other hand increasing the age to marginal effect value close to 0,111. It indicates respondent whose handling worked force will

that respondent whose living at isolation region encourage them to be more active and

is potential to be poorer or worse. In other productive. Galadima (2014) implies that

words, they are more susceptible to be very worked force productive group among 20-65

poor because of limited access. It similar to years old by average on 40 years old. It

previous research belongs to Cate et all by put indicates that they remain to have an active

Papua New Guinea as taken location of involvement and maximum ability to work. Age

research. Papua New Guinea is a region that has distribution in this research has affected to

a lot of isolated places by its natural contoure. It IFAD – CBARDP program which purpose to

caused to the minimum accessibility of serve and deliver a better life through following

transportation, public services, and limited projects.

labor fields. Those conditions make people who lived there remain poor.

The level of education has positive slope too by its marginal effect value close to 0,0067.

In another hand, the size of the family has Major education level to respondent is

negatively impact to them by its marginal effect dominated by the elementary junior graduate. It

value close to – 0,0069. It indicates that means that potential to be poorer is higher than

respondent with bigger size of the family will respondent whose handling a higher level of

decrease their potential to be poorer. The bigger education. Human capital can be built both

size of the family means more members whose physic and non-psychic investment. The physic

handling jobthus they could raise and gather investment

income to fill their daily needs.

100 International Journal of Social and Local Economic Governance (IJLEG)

Vol. 2, No. 1, April 2016, pages 90-102

While dependency ratio is also low and it social capital and ethnichal background. It is was unsignificantly affected to this group. It is

different to near poor group that holds more caused by more member of the family involve

complexity factors include land availability, to the labor fields and there is no age limitation

weather, age level and level of education. While to work, especially in the farm sector. Galadima

the susceptible poor group is more sensitive to (2014) also points out that family group highly

isolation, the size of family, asset ownership, depends on working participation program that

and job level.

was held by IFAD-CBARDP to improve their life quality which focused on individual

5. ACKNOWLEDGEMENTS

assistance to whom work in the farm sector. Alhamdulillahirobbil’alamin, Thank You Chaudhry et all (2009) propose that

Allah SWT for all grateful things. The author poverty can be measured based on the internal

receives many blessings thusauthor can condition of the family by calculated their

complete whole research process. The author living cost based on the number of family

regards much thankful to those whom concern member. Based on this research can be found

and support into the whole process of the that susceptible poor family close to the family

LPPM Brawijaya with 7-8 members or there is 4 % family whose

research,

especially

University, and people who could not be include to the susceptible level of poor from

mentioned by details.

total population. Then 26 % represents family

whose handling cost more than 8 members. Asset ownership also has a positif impact

6. REFERENCES

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POVERTY IN SIAK DISTRICT, RIAU PROVINCE: ITS ISSUES AND CONTRIBUTING FACTORS