Does the Quality of Real Economic Growth Occur in Indonesia? Pro-Poor Based on Human Capital Perspectives

This study aims to investigate whether the quality of real economic growth occurs in Indonesia which is pro-poor based on human capital. The data used in this study is panel data sourced from the Indonesian Central Bureau of Statistics. The panel data covers 505 regencies/cities spread across 33 provinces in Indonesia during 2014-2020. The total number of panel data is 3535 in 7 years. The panel data model is used to attain the purpose of this study. The results of this study show that the economic growth of the 505 regencies/cities in Indonesia during 2014-2020 has not been pro-poor economic growth yet or the economic growth has not improved the economic conditions of the poor. This highlights that the quality of economic growth in Indonesia is still low. Therefore, the Indonesian government has to formulate a new economic framework orientation that is more focused on labor-intensive which is based on human capital through reforming pro-poor education and health programs and public infrastructures (Aggregate Supply Side). In addition, the quality of fiscal and monetary policy management (Aggregate Demand Side) which is pro-poor has to be strengthened. This comprehensive policy will shape the long-term self-sufficient quality of economic growth.