The Impact of Social Financial Grants on Poverty Alleviation in Rural Indonesia: A Demographic and Econometric Analysis

ABSTRACT This study examines the impact of social financial grants on poverty alleviation in rural Indonesia, using a demographic perspective and econometric analysis. By utilizing first‐hand survey data from various rural districts, the research investigates the effectiveness of these grants in improving household income, reducing poverty rates, and promoting economic stability. The study employs econometric tools such as regression analysis, difference‐in‐differences (DiD), and propensity score matching (PSM) to assess the causal relationship between social financial grants and poverty alleviation. The findings provide insights into the demographic factors influencing the effectiveness of these grants and offer policy recommendations to enhance their impact on rural poverty in Indonesia.