The Influence Of Financial Factors On Poverty In West Halmahera

Introduction/Main Objective: Poverty is a complex and multidimensional global problem, covering various aspects of life, including economic, social, health, and access to education. Background Problems: So far, poverty alleviation has been carried out by the Government, but the poverty rate tends not to decrease. This is the basis for this research to be conducted. This study will examine this phenomenon from an economic perspective. The purpose of this study is to determine the effect of lack of income, low desire to save, and the low role of the private sector/mining in overcoming the problem of limited essential infrastructure facilities on poverty in West Halmahera. Novelty: The novelty in this study examines the influence of the role of the private sector/mining on the development of essential infrastructure in West Halmahera. Research Method: This study uses a quantitative approach. A survey using a questionnaire instrument is a data collection technique for 385 respondents with a sampling technique, namely purposive sampling. To quantify the data obtained, a Likert scale is used. Furthermore, to see the influence of the factors that cause poverty, the analysis tools used are Confirmatory Factor Analysis (CFA) and Principal Component Regression Analysis (PCRA). Findings/Results: The results of the study indicate that factors such as low community desire to save, and minimal role of the private sector/mining in overcoming the problem of limited essential infrastructure facilities and minimal ownership of valuable assets have a significant influence on poverty in West Halmahera. Conclusion: The results of the study indicate that factors such as low community desire to save, minimal role of the private sector/mining in overcoming the problem of limited essential infrastructure facilities, loans mostly sourced from non-formal financial institutions with high interest rates, and minimal ownership of valuable assets have a significant influence on poverty in West Halmahera.