The Correlation of Regional Economic Indicators to Poverty, Unemployment, and Economic Resilience in the Kadungsepur National Strategic Area

Authors

  • Bagas Rindirindi Universitas Diponegoro, Semarang, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v7i2.5742

Keywords:

Proverty, Unemployment, Regional Economic Resilience

Abstract

This study analyzes the dynamics of poverty and unemployment in the Kedungsepur National Strategic Area (KSN) during the 2013–2023 period within the framework of regional economic resilience and development policy. A descriptive quantitative approach was employed using secondary data from Statistics Indonesia (BPS) and the Regional Development Planning Agency (Bappeda) of Central Java, covering six administrative areas: Semarang City, Salatiga City, and the Regencies of Semarang, Demak, Kendal, and Grobogan. The analysis was conducted through socio-economic trend calculations and Pearson correlation tests among regional economic indicators, including Regional Own-Source Revenue (PAD), the Human Development Index (HDI), Regional Minimum Wage (UMR), poverty rate, and open unemployment rate (TPT). The results indicate that the average poverty rate decreased from 10.65% in 2013 to 8.20% in 2023, while the unemployment rate decreased from 6.01% to 4.93%. However, Semarang Regency experienced a slight increase in unemployment (from 3.9% to 4.05%), indicating a jobless growth phenomenon. The correlation between HDI and poverty shows a very strong negative correlation (r = –0.976), implying that improved human quality significantly contributes to poverty reduction. Conversely, the positive correlation between minimum wage and unemployment (r = 0.795) suggests that wage increases without productivity improvements may reduce employment absorption. The findings emphasize that economic growth in Kedungsepur remains non-inclusive, being concentrated in urban and capital-intensive sectors. Therefore, a resilience-oriented development and Local Economic Development (LED) approach is required to promote economic diversification, enhance workforce skills, and ensure equitable distribution of development benefits. The study contributes to the formulation of regional development policies that are equitable, resilient, and sustainable.

References

Asian Development Bank (ADB). (2022). Indonesia: Strengthening local economic development strategies. Manila: ADB.

Regional Development Planning Agency (Bappeda) of Central Java Province. (2023). Central Java Regional Economic Performance Report 2023. Central Java Provincial Government.

National Development Planning Agency (Bappenas). (2020). National Medium-Term Development Plan (RPJMN) 2020–2024. Ministry of National Development Planning/Bappenas.

National Development Planning Agency (Bappenas). (2023). Regional Economic Inequality and Resilience Report 2023. Ministry of National Development Planning/Bappenas.

Central Statistics Agency (BPS). (2024). Central Java Province in Figures 2024. Central Statistics Agency.

Blakely, E. J., & Leigh, N. G. (2013). Planning local economic development: Theory and practice (5th ed.). SAGE Publications.

Bristow, G., & Healy, A. (2020). Regional resilience: An agency perspective. Regional Studies, 54(3), 321–334. https://doi.org/10.1080/00343404.2019.1608356

Darma, S., Muslihatinningsih, F., & Adenan, N. (2024). The Influence of the Human Development Index on Poverty and Social Inequality in Indonesia. Indonesian Journal of Economics and Development, 24(1), 45–60.

Foster, K. A. (2017). Resilience capacity and regional economic performance. Journal of Regional Analysis and Policy, 47(1), 1–14.

Hasibuan, A., Juanda, B., & Mulatsih, S. (2019). Determinants of poverty in Indonesia: Panel data approach. Indonesian Journal of Economics and Development, 19(2), 183–202.

Ikhsanudin, M., & Yasin, H. (2021). The Effect of Human Development Index (HDI) and Economic Growth on Poverty in Central Java Province. Journal of Economics and Development Studies, 22(1), 30–42.

Kumo, W.L. (2012). Employment creation and destruction in South Africa: The role of productivity. African Development Review, 24(3), 301–314.

Martin, R., & Sunley, P. (2015). On the notion of regional economic resilience: Conceptualization and explanation. Journal of Economic Geography, 15(1), 1–42. https://doi.org/10.1093/jeg/lbu015

Nazir, M. (2014). Research methods. Ghalia Indonesia.

Pike, A., Dawley, S., & Tomaney, J. (2021). Resilience and regional development in times of crisis. Regional Studies, 55(1), 1–12. https://doi.org/10.1080/00343404.2020.1820839

Pike, A., Rodríguez-Pose, A., & Tomaney, J. (2017). Local and regional development (2nd ed.). Routledge.

President of the Republic of Indonesia. (2022). Presidential Regulation of the Republic of Indonesia Number 60 of 2022 concerning the Spatial Planning of the Kedungsepur National Strategic Area. State Secretariat of the Republic of Indonesia.

Rakhmawan, R., & Aji, W. (2023). Economic growth and regional inequality in Indonesia: An inter-provincial spatial analysis. Journal of Regional Economics and Development Planning, 4(2), 101–118.

Rodríguez-Pose, A. (2018). The revenge of the places that don't matter (and what to do about it). Cambridge Journal of Regions, Economy and Society, 11(1), 189–209. https://doi.org/10.1093/cjres/rsx024

Rodríguez-Pose, A., & Crescenzi, R. (2008). Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe. Regional Studies, 42(1), 51–67.

Setyawan, D., & Firdaus, M. (2022). Spatial disparities and poverty determinants in Indonesia. Journal of Economics and Development Studies, 23(1), 55–70.

Sjafrizal. (2014). Regional development planning in the era of autonomy. RajaGrafindo Persada.

Sugiyono. (2017). Quantitative, qualitative, and R&D research methods. Alfabeta.

Sukirno, S. (1994). Introduction to macroeconomic theory. RajaGrafindo Persada.

Timothy, DJ (2018). Cultural heritage and tourism: An introduction. Channel View Publications.

Todaro, M. P., & Smith, S. C. (2020). Economic development (13th ed.). Pearson Education.

Widodo, T. (2021). Human capital and inclusive growth in Indonesian provinces. Bulletin of Indonesian Economic Studies, 57(3), 345–368. https://doi.org/10.1080/00074918.2021.1902463

Wijesuriya, G. (2015). Managing change: Sustainable approaches to the conservation of the built environment. Getty Conservation Institute.

Yulianti, R., & Pratama, I. (2023). Regional fiscal capacity and poverty reduction: Evidence from Indonesian districts. Indonesian Journal of Economics and Development, 24(2), 112–128.

Downloads

Published

2025-12-24

How to Cite

Rindirindi, B. (2025). The Correlation of Regional Economic Indicators to Poverty, Unemployment, and Economic Resilience in the Kadungsepur National Strategic Area. Dinasti International Journal of Education Management and Social Science, 7(2), 1886–1899. https://doi.org/10.38035/dijemss.v7i2.5742