CHAPTER I

INTRODUCTION

1.1 Background
More than 20 percent of the world’s population lives in poverty. Poverty is a big
problem in the whole world, because thousands of people die each year due to this big
issue. It is also a problems faced by Indonesia from year to year. Poverty has always been
a major issue in the economy and social life of a region. More than that, poverty is the
root of crime that occurs in society. Such as violence, robbery, robber, and other crime is
also derived from poverty. In the past year, the percentage of poverty is said to be
decreased, but ironically the real poverty number is actually higher than last year. Poverty
occurs not only in urban areas but also in rural areas. Sadly, the government policy has
not been able to meet the needs of the community. Then the question is, what is the
problem in this country so that poverty does not getting insurmountable? Whom to blame
if a region experiencing poverty? Poverty is not a new issue occurred, but has been an
issue that Indonesia has as a developing country since then. Indonesia's high level of
consumption makes us become ineffective in usage of natural resources, so many of us
are choosing to import rather than cultivate what is in the nation. High levels of
consumption that are not offset by the lack of resources, require the market to raise the
selling price so demand and supply will be maintained. but this will give a negative
impact, due to high inflation can make people who have low purchasing power difficult
to fullfil their needs
This research paper will tell us what poverty is, its cause, effects, what people
could do to help stop it. Poverty is an issue that needs to be address by everybody in the
world because if no one tries to something about it is going to keep getting worst as time
goes on. This research paper is to inform people about poverty, to make sure people
understand what poverty is, what is doing to us, and most important to inform about what
they could do to stop it. By informing people with all this information I would like to see
them taking action towers this issue, it would be very helpful if people help does with
need after reading this research paper. To help stop poverty we must help each other in

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any way we can. Many of you may ask what poverty really means. Well poverty refers to
the condition of not having the means to afford basic human needs such as clean water,
nutrition, healthcare, clothing, food, and a warm place to live. Poverty is a deadly issue
that’s killing our population slowly. Poverty has been around for a long time now, it
started when all rich people began to get richer, by rich people getting richer they were
making other people poor, and let them to live without the humans needs. In my opinion
all those people that are now living in poor conditions should not be living like this if
there is people who could do something to help, by helping them am saying that they
could use money to make sure this people have a place to live, and food for their kids.

1.2 Statement of Problem

1. What Is The Definition Of Poverty?
2. What are the indicators of Poverty?
3. What are the Factors That cause poverty?
4. By how we can clasify that someoe is poor or not?

1.3 Objective of Problem

1. To understand The Definition Of Poverty.
2. To understand the indicators of Poverty.
3. To understand e Factors That cause poverty.
4. To educate reader for clasifying who can be define as a poor person. (discuss
the research)

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 CHAPTER II
THEORETICAL BASIS.

2.1 The definition of Poverty

In popular science dictionary, the word "poor" means not affluent (property not
sufficient) or broke. As for the word "needy" is defined as people who are very poor. In
etymology means poverty laden with consumption issues. It began from the neo-classical
period in which poverty is only seen from a negative interaction (imbalance) between the
workers and the wages earned. Poverty can also be defined as a situation where a person
is unable to meet the needs of everyday life, or it can be said with a deprivation in terms
of lack of material that makes them unable to enjoy education, health care, and other
conveniences.
To measure poverty, Central Bureau of Statistics uses the concept of ability to
meet basic needs (basic needs approach). With this approach, poverty is seen as an
economic inability to meet the basic needs of food and non-food which is measured from
the expenditure side. So the Poor is the population had an average monthly per capita
expenditure below the poverty line. To give us more understanding about ehat is poverty,
there are few concept of pverty line:
1. Poverty Line (GK) is the sum of Food Poverty Line (FPL) and Non-Food
Poverty Line (NFPL). The population had an average monthly per capita
expenditure below the poverty line are categorized as poor.
2. Food Poverty Line (FPL) is the minimum food expenditure, which is equivalent
to 2100 kilocalories per capita per day. Food consumption bundle represented
by 52 types of commodities (grains, tubers, fish, meat, eggs and milk,
vegetables, legumes, fruits, oils and fats, etc.)
3. Non-Food Poverty Line (NFPL) is the minimum requirement for housing,
clothing, education and health. Consumption bundle represented by 51 non-
food commodities in urban and 47 commodities in the countryside

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2.2 Indicator of Poverty
To get to the solution of poverty, it is important for us to explore in detail the
indicators of poverty. As for the indicators of poverty as in the quotation from the Central
Bureau of Statistics, among others, as follows:
1. Inability to meet basic consumption needs (food, clothing and shelter).
2. Lack of access to other basic necessities of life (health, education, sanitation,
clean water, and transport).
3. No guarantee of future (because of the lack of investment in education and
family).
4. Vulnerability to shock the individual and the masses.
5. The low quality of human resources and limited natural resources.
6. Lack of appreciation in social activities.
7. Lack of access to employment and sustainable livelihoods.
8. Inability to strive for physical or mental disability.
9. Inability and social independence (abandoned children, women victims of
domestic violence, poor widows, marginalized groups and remote).

2.3 Factors Contributing to Poverty

There are two condition that leads poverty can occur, that is poverty natural and
artificial poverty. Poverty naturally occur as a result of natural resources (SDA) is limited,
the use of low technology and natural disasters. Artificial poverty caused by the impact
of a less competent bureaucrats in control of the economy and the various facilities
available, resulting in hard to get out of the poverty crisis. The impact, economists have
always severely criticized the development policies that promote growth instead of
equity.
Below are some of the causes of poverty in the opinion of Karimah Kuraiyyim,
1. The decline of the standard per-capita income growth globally.
The important thing to be underlined here is that the standard per-capit income
moves balanced with productivity that exist in a system. If productivity
gradually increases, the per-capita income will rise. Vice versa, if the
productivity of shrinking the per-capita income will fall in tandem. Here are

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 some of the factors affecting the deterioration of the standard per-capita income
growth:
· The increase in the standard development of an area.
· Political economy is not healthy.
· Foreign factors, including:
1) Damage to the terms of trade
2) The debt burden
3) Lack of foreign aid, and
4) War
2. The decline in the work ethic and productivity of society.
Clearly visible is very urgent factor in their influence on poverty. Therefore,
to raise the work ethic and productivity of the people must be supported with
good natural resources and human resources, as well as health care and
education are accountable to the maximu
3. The cost of the high life.
Soaring high cost of life in an area is as a result of the lack of balance the
public interest or income. Of course, poverty is a logical consequence of the
reality of the above. This can be caused by a lack of skilled labor, the weak
role of women in public and unemployment.

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 CHAPTER III
DISCUSSION

3.1 Data Analysis

Research has been carried out against one of the people who, in my opinion, are
in the line of poverty. Interviews were conducted for a moment to ask if the respondent
is said to be poor or not. Here is the identity of the respondent:
Name: Julius suprianto
Age: 54 years
Origin: Pasuruan, Jawa Timur
Occupation: household assistant
Number of children: 4 (four)
Number of family members: 5
Number of dependents: 5 people
Mr. Julius is a household assistant. He worked in the city to meet the needs of his
family. Every day Mr. Julius is a worker at one of boarding house existing in Malang. He
has worked for almost five years, from 2012 until now Mr. Julius lived alone in the city
and left his family who are in the Pasuruan. He is responsible to support his three
daughters, his sons and his wife who were in the village. He worked helped by his first
son who also are studying at one university in Malang. Each month, Mr. Julius granted
his wage of Rp. 1,500,000. The money is sent to the villages, to help his family's economy
in the village _. The wages he receives are paid once a month. This job is not the only
business that he did. In addition to working as a construction worker, he also has a farm
in his hometown, although not so big. Estates he owned in the village is the family's
efforts to help support the economic needs of the family. Wife, and two daughters who
are responsible for the management of the estate. usually, he had to work from 07:00 to
18:00. Work was carried out almost 12 hours, at a cost that is mediocre. Within a week
he works from Monday to Saturday during working hours, but got the holiday schedule
on Sunday. Within a month, on average it should take about 20-25 days to work
effectively.

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 Earnings that he earn each month reach 2-3 million . This rate refer to the total of
income as a household assistant and businesses (farming) located in the village. Every
three months Mr Julius took time to go back to his village to visit his wife and helped her
in the garden. Job that he spent as a household assistant is not a permanent job. Mr. yulius
also must pay for college of his first child , and also cope with the needs of their children
who are still in school bench. With the increasing demands and growing market price
rises, making Mr. Julius family have to be smart in using the income that they have. Most
of the revenue is allocated to finance their children's school who are still in college, and
partly delivered to his hometown as the capital back to gardening.

3.2 Result Analysis

According to the interviews, the income received by Mr. Julius is barely fit. He
must manage his money properly in order to meet the basic needs required. There are
times when the family Mr Julius shortage costs and require them to lend. This is felt
especially when entering the new school year, where children have to prepare for the
needs of the school, pay tuition and college of first child. If the funds they have less, then
Mr. Julius borrowing to the nearest relatives, friends or relatives. And will pay it off if it
gets a salary in the upcoming months. In addition they must also save by not buying needs
that are not too important, such as clothing or other tertiary needs.
With limited funds at their disposal, Mr. Julius families sometimes do not have
the extra money, to be kept as a deposit in the future. However, with all the limitations of
this family style, they can not be said to be poor. Back on the definition of poor by BPS,
that the poor are those who can not meet the needs of food and non-food. In this case, the
family father yulius probably experiencing economic difficulties, but not to lead them
unable to meet their basic needs of food, or non-food, such as housing, clothing, school
or their health. They have had a private home major needs have been met but can not live
exaggerated. The Central Bureau of statistics has determined the extent that a person is
poor or not. Compared to before, the percentage of poor people in Indnesia was noted to
have diminished, but that does not mean it is a good thing. Evidently, in nominal terms,
the number of poor people in Indonesia is growing.

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 So why does this happen? This occurs because the total population of Indonesia
is increasing also affect existing presentation. Although it seems the number of poor
people in Indoneia seen by as quantities, but in fact, as the quality has declined. Standards
conducted by BPS are very low, which is said to be poor are those who have a per capita
income of Rp.354.000 per month, or $ 25. Meanwhile, if we compare the value of poverty
line of the World Bank, which classifies the percentage of the Indonesian population is
living on less than USD $ 1.25 per day as those who live below the poverty line (ie poor),
then the percentage of poor people in Indonesia very different, which will be greater than
now. Furthermore, according to the World Bank, if we count the number of Indonesia's
population is living on less than US $ 2 per day figure will rise more sharply again. This
shows that the majority of the Indonesian population lives below the poverty line almost.

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 CHAPTER IV
CONCLUTION

4.1 Conclution
Like what we have read that someone said to be poor when he is unable to meet
basic needs. A person is said to be poor when he receives income that is less than (on
average) Rp. 350,000 each month, and even lower when compared to other regions. From
the research that has been done through a short interview, we can conclude that a person
who looks poor is not one who is really poor. Proven with sufficient income , Mr. Julius
is not those who are categorized as poor, as though life is very mediocre.

4.2 Sugesstion
4.2.1 For Goverment
Government as a regulator of the policy should be wise in determining a person's
level of poverty. With the results of a survey by the government, can be a benchmark for
all parties to see how the economic conditions of Indonesian society. decrease in the
number or percentage of poverty in the country is expected, but if it is obtained with a
very low standard would be very disappointing. The evaluation will not be accurate and
policies are made are also not to be right on target.

4.2.2 For Society

Poverty is our common enemy. Poverty is not an issue that is coming from outside
influences but also because of the influence of the inside of us. Poverty can be overcome
with hard work and perseverance. If every citizen willing to work harder, take advantage
of the skills and resources available through the SME, poverty inevitably be slowly
dropped. Not because the standards are lowered, but a better quality of life of citizens

4.2.3 For Student

Students are at the forefront of a country. Mass mover, agent of change, a control
of a social life, even politics. Students have the power that is extraordinary in a country.

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Students must truly be fostered, in order to be a candidate for a good leader. Explore the
ability of individuals who owned up to the limit. and most importantly, the student must
be creative in life.

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 BIBLIOGRAPHY

https://www.bps.go.id/Subjek/view/id/23
http://www.indonesia-investments.com/id/keuangan/angka-ekonomi-
makro/kemiskinan/item301?
http://www.worldbank.org/en/topic/poverty/overview#1

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 Attachment

1. Picture

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