DOI: https://doi.org/10.14710/politika.14.1.2023.68-86

Mobility Restriction Policy and Poverty Impact of Covid-19 in Indonesia: Evidence from District-Level Data

Department of Politics and Government, Diponegoro University, Indonesia

Open Access Copyright (c) 2023 Politika: Jurnal Ilmu Politik under https://creativecommons.org/licenses/by-sa/4.0/.

Citation Format:
Abstract

This paper analyze the poverty impact of Covid-19 on regions of Indonesia using district-level data. Six provinces employed non-pharmaceutical measure namely PSBB (Pembatasan Sosial Berskala Besar) mobility restriction are set as the treated group. Meanwhile, our poverty variable is the share of population living below the poverty line against district total, calculated based on the basic needs approach. We employ difference-in-difference (DID) estimator to explore the poverty impact. Results state that while the Covid-19 impact is significant in the more industrialized and globally connected regions such as Java and Bali, provinces implementing PSBB policy suffer from 0.07 – 0.09 percentage points higher poverty incidence compared to the control. The impact is observed to be larger in the urban (city) area compared to the non-urban (districts). The finding suggests inadequacies of the government’s complementary responses in controlling poverty increase, suggesting the need for a more inclusive strategy such as implementing Universal Basic Income.

Fulltext View|Download
Keywords: mobility restrictions; Covid-19; poverty; regional analysis; impact evaluation

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
Why does female voters prefer vote buying in local head elections? Analisis Platonian atas Fenomena Regresi Demokrasi di Indonesia Refleksi Budaya Politik dan Perilaku Memilih Suku Sunda More recent articles
Most cited articles
PARTISIPASI MASYARAKAT DALAM PROGRAM PENYEDIAAN AIR MINUM DAN SANITASI BERBASIS MASYARAKAT (PAMSIMAS) di KABUPATEN BREBES (Studi Kasus Desa Legok dan Desa Tambakserang Kecamatan Bantarkawung) Politika Jurnal Ilmu Politik PEMEKARAN DAERAH DI INDONESIA FAKTOR DETERMINAN KEMENANGAN KANDIDAT PADA PEMILUKADA KABUPATEN BATANG 2011 KEBIJAKAN PENDIDIKAN GRATIS DI TINGKAT REGIONAL: Konsep dan Pelaksanaan di Kabupaten Rembang More cited articles
  1. Anugerah, A.R., Muttaqin, P.S., & Purnama, D.A. (2021). Effect of large-scale social restriction (PSBB) during COVID-19 on outdoor air quality: Evidence from five cities in DKI Jakarta Province, Indonesia. Environmental Research, 197, p.111164
  2. Ariansyah, A (2020). Update Sebaran Daerah PSBB COVID-19. BNPB, https://bnpb.go.id/infografis/ update-sebaran-daerah-psbb-covid19
  3. Asmorowati, S., Schubert, V., & Ningrum, A.P. (2021). Policy capacity, local autonomy, and human agency: tensions in the intergovernmental coordination in Indonesia's social welfare response amid the COVID-19 pandemic. Journal of Asian Public Policy. Doi: 10.1080/17516234.2020.1869142
  4. Auliya, S.F. & Wulandari, N. (2021). The Impact of Mobility Patterns on the Spread of the COVID-19 in Indonesia. Journal of Information Systems Engineering and Business Intelligence, 7(1), pp.31-41
  5. Barro, R.J., José, F. U., & Weng, J. (2020). The Coronavirus and the Great Influenza Epidemic—Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects on Mortality and Economic Activity (Issue 8166), CESifo. https://ideas.repec.org/p/ces/ceswps/_8166.html
  6. Beutels, P., et all. (2009). The economic impact of SARS in Beijing, China. Tropical Medicine & International Health no. 14, pp. 85–91
  7. Card, D, & Krueger, A. (1994). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. American Economic Review, vol. 84 no. 4, pp. 772–793
  8. Chathukulam, J, & Tharamangalam, J. (2021). The Kerala model in the time of COVID19: Rethinking State, Society and Democracy. World Development no. 137, 105207
  9. Chen, L., Raitzer, D., Hasan, R., Lavado, R., & Velarde, O. (2020). What works to control COVID-19? Econometric analysis of a cross-country panel. Asian Development Bank Economics Working Paper Series 625
  10. Duflo, E. (2001). Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. The American Economic Review vol. 91 no. 4, pp. 795–813
  11. Fitriana, I.N.L., & Mabruri, M.O. (2020) Cluster Analysis of Covid-19 Impact On Poverty In Indonesia Using Self-Organizing Map Algorithm. Jurnal Aplikasi Statistika & Komputasi Statistik, 12(3), 85-94
  12. Gathergood, J, & Guttman-Kenney, B. (2021). The english patient: Evaluating Local Lockdowns Using Real-Time Covid-19 & Consumption Data. Covid Economics no. 64, pp. 73–100
  13. Gibson, J., & Olivia, S. (2020). Direct and Indirect Effects of Covid-19 On Life Expectancy and Poverty in Indonesia. Bulletin of Indonesian Economic Studies, vol. 56 no. 3, pp. 325-344. doi: 10.1080/00074918.2020.1847244
  14. IMF. (2020). World Economic Outlook: The Great Lockdown (Chapter 1), International Monetary Fund (IMF), Available at: https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/ weo-april-2020
  15. Huber, C., Finelli, L., & Stevens, W. (2018). The Economic and Social Burden of the 2014 Ebola Outbreak in West Africa. The Journal of Infectious Diseases no. 218 (Supplement_5), S698-S704. doi: 10.1093/infdis/jiy213
  16. John Hopkins University (2021). Monthly Confirmed Covid-19 Cases, https://ourworldindata.org/ explorers/coronavirus-data-explorer, accessed 4 January 2021
  17. Keogh-Brown, M.R., & Smith, R.D. (2008). The economic impact of SARS: how does the reality match the predictions? Health Policy vol. 88 no. 1, pp. 110–120
  18. Khoirunurrofik, K., Abdurrachman, F., & Putri, L.A.M. (2022). Half-hearted policies on mobility restrictions during COVID-19 in Indonesia: A Portrait of Large Informal Economy Country. Transportation Research Interdisciplinary Perspectives, 13, 100517
  19. Laborde, D., Martin, W., & Vos, R. (2020). Poverty and food insecurity could grow dramatically as COVID-19 spreads. International Food Policy Research Institute (IFPRI), Washington, DC
  20. Midões, C., & Seré, M. (2021). Living with reduced income: An analysis of household financial vulnerability under COVID-19. Social Indicators Research, pp. 1–25
  21. Oosterbeek, H., Van Praag, M., & Ijsselstein, A. (2010). The Impact of Entrepreneurship Education on Entrepreneurship Skills and Motivation. European Economic Review, vol. 54 no. 3, pp. 442–454
  22. Peraturan Kepala Badan Pusat Statistik Nomor 37 Tahun 2010 (2010). https://sirusa.bps.go.id/webadmin/doc/ MFD_2010_Buku_1.pdf
  23. Rahmayani, D., Oktavilia, S., & Putri, P.I. (2021). The Impact Of Covid-19 Pandemic On Inflation In Indonesia. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
  24. Setyadi, S., & Indriyani, L. (2021). Dampak pandemi Covid-19 terhadap peningkatan resiko kemiskinan di Indonesia. PARETO: Jurnal Ekonomi Dan Kebijakan Publik, 4(1), 53-66
  25. Smith, K.M, et all. (2019). Infectious Disease and Economics: The Case For Considering Multi-Sectoral Impacts. One Health no. 7, 100080
  26. Statistics of Indonesia. (2020). Poverty and inequality https://www.bps.go.id/subject/23/kemiskinan-dan-ketimpangan.html#subjekViewTab1 (Accessed on January 30, 2021)
  27. Sparrow, R., et all. (2020). Indonesia Under the New Normal: Challenges And The Way Ahead. Bulletin of Indonesian Economic Studies, vol. 56 no. 3, pp. 269–299
  28. Sumner, A., et all. (2020). Estimates of the Impact of COVID-19 on Global Poverty (Issue 2020/43), WIDER working paper
  29. Suryahadi, A., Al Izzati, R., & Suryadarma, D. (2020). Estimating the Impact Of Covid-19 On Poverty In Indonesia. Bulletin of Indonesian Economic Studies, 56(2), 175-192
  30. Syafarina, I., Shabrina, A., Latifah, A.L., & Adytia, D. (2021). Evaluation Of The Social Restriction And Its Effect To The Covid-19 Spread In Indonesia. In 2021 9th International Conference on Information and Communication Technology (ICoICT) (pp. 19-24). IEEE
  31. Valensisi, G. (2020). COVID-19 And Global Poverty: Are Ldcs Being Left Behind? The European Journal of Development Research, vol. 32 no. 5, 1535–1557
  32. Yusuf, A.A., et all. (2020). Strategi Ekonomi Sector Pertanian di Tengah Pandemi Covid-19’, Center for Sustainable Goals Studies. May. http://sdgcenter.unpad.ac.id/strategi-ekonomi-sektor-pertanian-di-tengah-pandemi-covid-19/

Last update:

No citation recorded.

Last update: 2024-04-19 00:07:30

No citation recorded.