ABSTRACT

Province of North Sumatera is the fourth most populous province in Indonesia after
West Java, East Java, amd Middle Java. The number of poor people in North Sumatera has
changed from year to year due to the monetary crisis in the middle of 1997 and increase in
fuel price. The goverment always launched efforts to reduce poverty from year to year, but
the number poor people in North Sumatera not also showed decrease significantly. Therefore,
the purpose of this study to analyze the factor that influences of the poor people in North
Sumatera.
The study used a secondary data sourced from various agencies, such as The Central
Bureau Statistics, Regional Development Planning in North Sumatera Province, and others.
The data used in the form time series from 1990-2013. The analysis model is a linear
regression.
The results showed that the inflation variable influence positive and significant effect
on the number of poor people, the domestic investment influence negative and not significant
effect on the number of poor people, and the economic growth influence negative and not
significant to the number of poor people in North Sumatera Province.

Keywords : Poor people, inflation, Domestic investment, and economic growth.