The effect of use-side gross domestic product on poverty level achievement in Indonesia

Poverty is an indicator in the economy that shows the level of people’s welfare. One of the factors that affect the level of poverty is the Gross Domestic Product (GDP). This study aimed to determine the effect of use-side GDP on achieving the poverty rate in Indonesia. The research method used is quantitative, and data collection taken from secondary data in the form of poverty data and GDP data sourced from the Central Statistics Agency (BPS) from 2009 to 2021, which were then processed with Excel and analyzed using the Eviews9 application, using path analysis techniques to determine the model used is whether it adheres to the expected effect, fixed effect, and random effect by going through the chow test. The study results show that consumption expenditures, government expenditures, private investment, and net exports affect the poverty level in Indonesia. This study’s findings indicate that poverty is not only solved by increasing economic growth. Thus, improving the quality of human resources will influence poverty reduction significantly.