COVID-19 Social Assistance Program and Poverty: Evidence from Indonesia

Sri Juli Asdiyanti Samuda; Erna Suprihartiningsih

doi:10.29259/jep.v20i2.19088

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October 1, 2022

Accepted

December 23, 2022

Published

January 15, 2023

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Abstract

The COVID-19 pandemic and policy response caused widespread disruptions to Indonesia's economy. Besides prioritizing saving people's lives during the COVID-19 pandemic, the government's focus is also to minimize the negative economic impact of the pandemic, including allocating social assistance programs to support household well-being. This study examines the role of COVID-19 social assistance programs in protecting households from falling into poverty during the COVID-19 pandemic. Using a longitudinal dataset from SUSENAS March and September 2020, this study employs difference-in-difference estimation with a conditional logit model to estimate the impact of COVID-19 social assistance programs on household poverty status. The result shows that the COVID-19 social assistance programs positively prevent households from becoming poor during the COVID-19 pandemic.

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COVID-19 poverty government assistance panel data

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How to Cite

Samuda, S. J. A., & Suprihartiningsih, E. (2023). COVID-19 Social Assistance Program and Poverty: Evidence from Indonesia. Jurnal Ekonomi Pembangunan, 20(2), 125–134. https://doi.org/10.29259/jep.v20i2.19088

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References

Almeida, V., Barrios, S., Christl, M., De Poli, S., Tumino, A., & van der Wielen, W. (2021). The impact of COVID-19 on households´ income in the EU. Journal of Economic Inequality, 19(3), 413–431. https://doi.org/10.1007/s10888-021-09485-8
Azeem, M. M., Mugera, A. W., & Schilizzi, S. (2019). Do Social Protection Transfers Reduce Poverty and Vulnerability to Poverty in Pakistan? Household Level Evidence from Punjab. Journal of Development Studies, 55(8), 1757–1783. https://doi.org/10.1080/00220388.2018.1448068
Békés, G., & Kézdi, G. (2021). Data Analysis for Business, Economics, and Policy. Cambridge: Cambridge University Press. doi:10.1017/9781108591102
Ben Hassen, T., El Bilali, H., & Allahyari, M. S. (2020). Impact of covid-19 on food behavior and consumption in qatar. Sustainability (Switzerland), 12(17), 1–18. https://doi.org/10.3390/su12176973
Bidisha, S. H., Mahmood, T., & Hossain, M. B. (2021). Assessing Food Poverty, Vulnerability and Food Consumption Inequality in the Context of COVID-19: A Case of Bangladesh. Social Indicators Research, 155(1), 187–210. https://doi.org/10.1007/s11205-020-02596-1
Bonaccorsi, G., Pierri, F., Cinelli, M., Flori, A., Galeazzi, A., Porcelli, F., Schmidt, A. L., Valensise, C. M., Scala, A., Quattrociocchi, W., & Pammolli, F. (2020). Economic and social consequences of human mobility restrictions under COVID-19. Proceedings of the National Academy of Sciences of the United States of America, 117(27), 15530–15535. https://doi.org/10.1073/pnas.2007658117
Chetty, R., Friedman, J. N., Hendren, N., & Stepner, M. (2020). The economic impacts of COVID-19: Evidence from a new public database built using private sector data (No. w27431). national Bureau of economic research.
Gibson, J., & Olivia, S. (2020). Direct and Indirect Effects of Covid-19 On Life Expectancy and Poverty in Indonesia. Bulletin of Indonesian Economic Studies, 56(3), 325–344. https://doi.org/10.1080/00074918.2020.1847244
Givelyn, I., Rohima, S., Mardalena, M., & Widyanata, F. (2022). The Impact of Cashless Payment on Indonesian Economy: Before and During Covid-19 Pandemic. Jurnal Ekonomi Pembangunan, 20(1), 89–104. https://doi.org/10.29259/jep.v20i1.17898
Harris, A. D., Bradham, D. D., Baumgarten, M., Zuckerman, I. H., Fink, J. C., & Perencevich, E. N. (2004). The use and interpretation of quasi-experimental studies in infectious diseases. Clinical Infectious Diseases, 38(11), 1586–1591. https://doi.org/10.1086/420936
Litheko, A. (2021). Small Tourism Business Growth Through Eco-tourism in Mahikeng, South Africa. African Journal of Hospitality, Tourism and Leisure, 10(1), 256–269. https://doi.org/10.46222/AJHTL.19770720-83
Maria del Rio-Chanona, R., Mealy, P., Pichler, A., Lafond, F., & Doyne Farmer, J. (2020). Supply and demand shocks in the COVID-19 pandemic: An industry and occupation perspective. Oxford Review of Economic Policy, 36, S94–S137. https://doi.org/10.1093/oxrep/graa033
Martin, A., Markhvida, M., Hallegatte, S., & Walsh, B. (2020). Socio-Economic Impacts of COVID-19 on Household Consumption and Poverty. Economics of Disasters and Climate Change, 4(3), 453–479. https://doi.org/10.1007/s41885-020-00070-3
Moeis, F. R., Dartanto, T., Moeis, J. P., & Ikhsan, M. (2020). A longitudinal study of agriculture households in Indonesia: The effect of land and labor mobility on welfare and poverty dynamics. World Development Perspectives, 20(September), 100261. https://doi.org/10.1016/j.wdp.2020.100261
Olivia, S., Gibson, J., & Nasrudin, R. (2020). Indonesia in the Time of Covid-19. Bulletin of Indonesian Economic Studies, 56(2), 143–174. https://doi.org/10.1080/00074918.2020.1798581
Suryahadi, A., Al Izzati, R., & Suryadarma, D. (2020). The impact of COVID-19 outbreak on poverty: An estimation for Indonesia. Jakarta: The SMERU Research Institute, 12, 3-4.
Suryahadi, A., Al Izzati, R., & Yumna, A. (2021). The Impact of Covid-19 and Social Protection Programs on Poverty in Indonesia. Bulletin of Indonesian Economic Studies, 57(3), 267–296. https://doi.org/10.1080/00074918.2021.2005519

References

Almeida, V., Barrios, S., Christl, M., De Poli, S., Tumino, A., & van der Wielen, W. (2021). The impact of COVID-19 on households´ income in the EU. Journal of Economic Inequality, 19(3), 413–431. https://doi.org/10.1007/s10888-021-09485-8

Azeem, M. M., Mugera, A. W., & Schilizzi, S. (2019). Do Social Protection Transfers Reduce Poverty and Vulnerability to Poverty in Pakistan? Household Level Evidence from Punjab. Journal of Development Studies, 55(8), 1757–1783. https://doi.org/10.1080/00220388.2018.1448068

Békés, G., & Kézdi, G. (2021). Data Analysis for Business, Economics, and Policy. Cambridge: Cambridge University Press. doi:10.1017/9781108591102

Ben Hassen, T., El Bilali, H., & Allahyari, M. S. (2020). Impact of covid-19 on food behavior and consumption in qatar. Sustainability (Switzerland), 12(17), 1–18. https://doi.org/10.3390/su12176973

Bidisha, S. H., Mahmood, T., & Hossain, M. B. (2021). Assessing Food Poverty, Vulnerability and Food Consumption Inequality in the Context of COVID-19: A Case of Bangladesh. Social Indicators Research, 155(1), 187–210. https://doi.org/10.1007/s11205-020-02596-1

Bonaccorsi, G., Pierri, F., Cinelli, M., Flori, A., Galeazzi, A., Porcelli, F., Schmidt, A. L., Valensise, C. M., Scala, A., Quattrociocchi, W., & Pammolli, F. (2020). Economic and social consequences of human mobility restrictions under COVID-19. Proceedings of the National Academy of Sciences of the United States of America, 117(27), 15530–15535. https://doi.org/10.1073/pnas.2007658117

Chetty, R., Friedman, J. N., Hendren, N., & Stepner, M. (2020). The economic impacts of COVID-19: Evidence from a new public database built using private sector data (No. w27431). national Bureau of economic research.

Gibson, J., & Olivia, S. (2020). Direct and Indirect Effects of Covid-19 On Life Expectancy and Poverty in Indonesia. Bulletin of Indonesian Economic Studies, 56(3), 325–344. https://doi.org/10.1080/00074918.2020.1847244

Givelyn, I., Rohima, S., Mardalena, M., & Widyanata, F. (2022). The Impact of Cashless Payment on Indonesian Economy: Before and During Covid-19 Pandemic. Jurnal Ekonomi Pembangunan, 20(1), 89–104. https://doi.org/10.29259/jep.v20i1.17898

Harris, A. D., Bradham, D. D., Baumgarten, M., Zuckerman, I. H., Fink, J. C., & Perencevich, E. N. (2004). The use and interpretation of quasi-experimental studies in infectious diseases. Clinical Infectious Diseases, 38(11), 1586–1591. https://doi.org/10.1086/420936

Litheko, A. (2021). Small Tourism Business Growth Through Eco-tourism in Mahikeng, South Africa. African Journal of Hospitality, Tourism and Leisure, 10(1), 256–269. https://doi.org/10.46222/AJHTL.19770720-83

Maria del Rio-Chanona, R., Mealy, P., Pichler, A., Lafond, F., & Doyne Farmer, J. (2020). Supply and demand shocks in the COVID-19 pandemic: An industry and occupation perspective. Oxford Review of Economic Policy, 36, S94–S137. https://doi.org/10.1093/oxrep/graa033

Martin, A., Markhvida, M., Hallegatte, S., & Walsh, B. (2020). Socio-Economic Impacts of COVID-19 on Household Consumption and Poverty. Economics of Disasters and Climate Change, 4(3), 453–479. https://doi.org/10.1007/s41885-020-00070-3

Moeis, F. R., Dartanto, T., Moeis, J. P., & Ikhsan, M. (2020). A longitudinal study of agriculture households in Indonesia: The effect of land and labor mobility on welfare and poverty dynamics. World Development Perspectives, 20(September), 100261. https://doi.org/10.1016/j.wdp.2020.100261

Olivia, S., Gibson, J., & Nasrudin, R. (2020). Indonesia in the Time of Covid-19. Bulletin of Indonesian Economic Studies, 56(2), 143–174. https://doi.org/10.1080/00074918.2020.1798581

Suryahadi, A., Al Izzati, R., & Suryadarma, D. (2020). The impact of COVID-19 outbreak on poverty: An estimation for Indonesia. Jakarta: The SMERU Research Institute, 12, 3-4.

Suryahadi, A., Al Izzati, R., & Yumna, A. (2021). The Impact of Covid-19 and Social Protection Programs on Poverty in Indonesia. Bulletin of Indonesian Economic Studies, 57(3), 267–296. https://doi.org/10.1080/00074918.2021.2005519

COVID-19 Social Assistance Program and Poverty: Evidence from Indonesia

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