Human Development Proven More Effective Than Income Equality in Reducing Poverty

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Surabaya, Indonesia – Improvements in education, healthcare, and living standards have been found to be the most effective factors in reducing poverty in Bojonegoro and Tuban Regencies, East Java. The finding comes from a study conducted by Yogi Nur Hidayat and Syamsul Huda from Universitas Pembangunan Nasional Veteran Jawa Timur and published in the 2026 edition of the East Asian Journal of Multidisciplinary Research (EAJMR).

The research compared the influence of income inequality and the Human Development Index (HDI) on poverty levels in two neighboring regencies with different economic characteristics. The study found that human development plays a much greater role in reducing poverty than income inequality.

Poverty remains one of Indonesia’s major development challenges. The issue became more visible during the COVID-19 pandemic when many households experienced declining income and employment opportunities. Beyond economic factors, poverty is closely linked to access to education, healthcare, infrastructure, and employment.

Bojonegoro and Tuban provide an interesting comparison because both regions have experienced economic growth over the past decade while showing different poverty trends. Bojonegoro managed to reduce poverty more consistently, whereas Tuban experienced greater fluctuations over time.

Using official data from Statistics Indonesia covering 2012–2021, the researchers analyzed the relationship between poverty, income inequality measured through the Gini Index, and human development measured through the Human Development Index.

The data revealed continuous improvements in HDI across both regions. Bojonegoro’s HDI increased from 64.20 in 2012 to 69.59 in 2021, while Tuban’s HDI rose from 63.36 to 68.91 during the same period. These improvements reflected better education, healthcare, and purchasing power among residents.

At the same time, poverty rates declined. Bojonegoro’s poverty rate fell from 16.66 percent in 2012 to 13.27 percent in 2021. Tuban’s poverty rate decreased from 17.84 percent to 16.31 percent over the same period.

The analysis found that income inequality did not have a statistically significant effect on poverty levels in either regency. Changes in income distribution alone were not directly associated with changes in poverty rates.

In contrast, the Human Development Index showed a significant negative relationship with poverty. Higher levels of education, healthcare quality, and living standards were associated with lower poverty rates in both regions.

According to Yogi Nur Hidayat and Syamsul Huda from Universitas Pembangunan Nasional Veteran Jawa Timur, poverty is not solely a matter of low income. It is also strongly linked to the quality of human resources. When people gain better access to education, healthcare, and opportunities to improve their well-being, their chances of escaping poverty increase substantially.

The findings support human capital theory, which argues that investments in education and health improve productivity and economic performance. Individuals with better skills, knowledge, and health are more capable of securing employment, adapting to economic change, and creating greater economic value.

The study suggests that economic growth alone is not sufficient to reduce poverty sustainably. Growth must be accompanied by investments in human development to ensure that its benefits reach broader segments of society.

For policymakers, the research highlights the importance of prioritizing education, healthcare services, vocational training, and social protection programs. Such investments may provide more effective poverty reduction outcomes than strategies focused solely on economic expansion.

The findings also reinforce the idea that development success should be measured not only by economic indicators but also by improvements in people's quality of life and opportunities.

As Indonesia continues pursuing sustainable development goals, the experience of Bojonegoro and Tuban demonstrates that investing in human development remains one of the most powerful strategies for long-term poverty reduction.

Author Profile

Yogi Nur Hidayat – Universitas Pembangunan Nasional Veteran Jawa Timur

Syamsul Huda – Universitas Pembangunan Nasional Veteran Jawa Timur

Research Source

Article Title: Comparison of the Influence of Human Development and Economy on Poverty Levels in Bojonegoro and Tuban Regencies

Journal: East Asian Journal of Multidisciplinary Research (EAJMR)

Publication Year: 2026

DOI: https://doi.org/10.55927/eajmr.v5i5.112

Journal URL: https://journaleajmr.my.id/index.php/eajmr

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