American Journal of Economics

p-ISSN: 2166-4951    e-ISSN: 2166-496X

2018;  8(1): 23-30

doi:10.5923/j.economics.20180801.05

 

Effort of Poverty Alleviate through the Empowerment of Women Labor in the District of Rokan Hulu

Harlen Deny Setiawan

Faculty of Economics and Business, University of Riau, Indonesia

Correspondence to: Harlen Deny Setiawan, Faculty of Economics and Business, University of Riau, Indonesia.

Copyright © 2018 Scientific & Academic Publishing. All Rights Reserved.

This work is licensed under the Creative Commons Attribution International License (CC BY).
http://creativecommons.org/licenses/by/4.0/

Abstract

This study aims to identify Characteristics of Poor People in Rokan Hulu and identify Poverty Countermeasures Measures through woman workers empowerment in Rokan Hulu that can be grown both through national policy and local government policy. The population that used in this study is poor people that recorded at the Central Bureau of Statistics in Rokan Hulu. The way in determining the sample, the writer used sampling purposive around 150 respondents that are divided into 3 (three) districts, namely Rambah, Bangun Purba, and Kabun and divided by sampling quota. Interview, questionnaire, and documentation are the methods that used for data collection. For data processing, in calculating the index of poverty can use a number of analysis tools, namely Headcount Ratio, Poverty Gap Index-P1, and Poverty Severity Index-P2. Based on the result of the research, it is known that poor woman workers in Rokan Hulu are around 38-57 years old, with average education level finished only in primary school. Working as a farmer is the main job that mostly cultivated by poor woman workers in Rokan Hulu with average income Rp. 1,000,000 to Rp. 1,999,999. In addition, the percentage of poor people is still too big with the poverty line around Rp. 446,426, HCI value of 0.64%. The poverty gap in Rokan Hulu is too large, at 0.250% which indicates the average income and expenditure of poor people are still far from the poverty line. Furthermore, the severity of poverty is indicated the poverty severity index of 0.121% shows an average inequality of income and expenditure among poor people themselves.

Keywords: Poverty, Woman workers, Economic Development

Cite this paper: Harlen Deny Setiawan, Effort of Poverty Alleviate through the Empowerment of Women Labor in the District of Rokan Hulu, American Journal of Economics, Vol. 8 No. 1, 2018, pp. 23-30. doi: 10.5923/j.economics.20180801.05.

1. Introduction

In developing countries, the main problem of development is poverty. Indonesia is not an exception, poverty is like a scourge that impedes development. Poverty is a multidimensional problem, that is not only in terms of inability to meet basic needs such as clothing, food and shelter. But more than that, poverty can also be seen from the limited access to education, health, infrastructure, and economic resources. Development basically aims to improve the welfare of community, because poverty degrades the human dignity and community, then poverty countermeasures is an important reference in implementing development. Thus, the decline in number of poor people is one of the benchmarks of successful development.
Indonesia has a great attention to justice and prosperous community as contained in the fourth paragraph of the 1945 Constitution. So far, implemented development programs are also always give great attention to efforts to alleviate poverty because basically the undertaken development aims to improve the welfare of the community.
Poverty in Riau is an interesting phenomenon, although the percentage of poor people is under the national average, the complexity of poverty itself seems still striking. This situation can not be separated from various aspects that affect such as area, the geographical condition that most of the coastal area, as well as local government efforts in tackling poverty. A large number of poor people and the percentage of poor people in districts / cities in Riau can be seen in the table below.
Table 1. Number, percentage of poor people and poverty line of districts / cities in Riau 2015
     
Rokan Hulu is one of districts in Riau with the relatively high level of poverty. The number of poor people in Rokan Hulu is the third largest number of poor people after Kampar. The percentage of poor people in Rokan Hulu is also the district with the third largest percentage of poor people in Riau after Meranti and Pelalawan Islands. It shows Rokan Hulu has serious problems regarding the poverty. The problem of poverty is not separated from the people’s low income, where in general poor people tend to work in agriculture or other informal sectors or even do not work at all.
Table 2. Percentage of poor people according to their own job sector can be seen in the table below
     
The high percentage of poor people who do not work is inseparable from the inadequate quality of human resources. Poor people are not competing because they have no special expertness or skills and are unable to complete a better education. The percentage of poor people who completed the highest education can be seen in the table below.
Table 3. Percentage of poor people who are able to finish the highest education in Riau 2015
     
The high percentage, the low income, poor people quality of human resources, and the low level of education of poor people certainly become a sad phenomenon where the problem of poverty is not a new thing faced. But the complexity of the problems are caused by the poverty itself is a case that must be solved by the government, both central government and local government. Various kinds of poverty countermeasures programs have also been done, but the effectiveness of the implementation is less targeted to make the program output less than the maximum. The percentage of government programs in attempt to overcome poor people received by poor people themselves in Riau can be seen in the table below.
Table 4. Percentage of poor people who receive poverty countermeasures support in Riau 2015
     
United Nation (1997) argues that the most severe poverty situation occurs in developing countries, there are around 1.3 billion of poor people in the world, 70% of them are women. It shows that the extent of women's involvement in poverty.
Table 5. Total of poor people in Rokan Hulu
     
Can be seen from the table above, the highest number of poor people always change every year. In 2014, Rokan IV Koto is 1,040 people, while in 2015 Rambah Hilir with population of 1,166 souls. Furthermore, in 2016 Rambah was amounted to 5,933 with the number of poor people of Rokan Hulu around 20,394 souls which is the highest number of poor people from the previous year. This illustrates the poverty alleviation programs that were planned by government not going well. So it had an impact on the high number of poor people in Rokan Hulu.
The economic activity of poor people in Rokan Hulu is still subsistence, can be seen from the source of income, wherein the people are in the subsystem economy or low income class, so that the participation of women in employment is very important to maintain the household economy. The women allocate all the power they have such as time, skills and financial resources to survive by becoming the second breadwinner. Even in situations where husbands' income is uncertain, inadequate, or even they are unproductive, women are the main support of the family economy (Indraswari and Thamrin, 1994). Thus, efforts to improve the welfare of women through empowering them to increase household incomes are attractive and important to do. In addition, women's empowerment plays an important role in reducing income distribution inequality and contributes greatly to tackling in poverty (Gilbert and Gugler, 1996).
The problem formulations in this research are: (1) How are the characteristics of poor people in Rokan Hulu? (2) How to reduce poverty through empowerment of woman workers in Rokan Hulu? The purpose of this research are: (1) To identify characteristics of poor people in Rokan Hulu, and (2) to identify Poverty Countermeasures through woman workers empowerment in Rokan Hulu that can be grown either through national policy or local government policy.

2. Literature Review

1. Development Issues
Siagian (1994) provides a definition of development as "a business or business series of growth and change that is planned and done consciously by a nation, state and government, towards modernity in the framework of nation building." While Ginanjar Kartasasmita (1994) provides a simpler definition, namely as "a process of change in a better direction through efforts made in a planned manner."
1.1. Economic Development
The definition of economic development as a guideline in this study is defined as a process that causes the real income per capita of a population to increase in the long run (Sukirno, 1985). Based on this definition can be seen that economic development means the existence of a development process that happens continuously that add and improve everything becomes better again. The existence of the development process is expected to increase real incomes of community for long term sustainability. The development of economic sectors that take place in every region in Indonesia must be adjusted to the potentials and priorities of each region so that the whole development is unified in order to realize the national development (Choi Rullah, 2007).
There are four models of development, such as economic development model that is oriented to growth, job creation, poverty eradication and development model that is oriented to the fulfillment of basic needs (Suryana, 2000). All development models are aiming quality of life, goods, and services improvement, creating new jobs for decent wages, with the hope of achieving a minimum level of living for all households to the maximum limit.
1.2. Approach in Community Development
In the seventies, there was a change of approach towards development. Bryant and White (1987) defines development as an effort to improve human ability in influencing its future. There are five implications of this definition:
a. Development means evoking the optimal human capabilities, both individuals and groups.
b. Development means encouraging the emergence of togetherness, equity and well-being.
c. Development means encouraging and trusting to guide itself according to the abilities that exist in it this belief, is expressed in terms of equal opportunity, freedom of choice and decision power.
d. Development means reducing country's dependence with other countries and creating mutually beneficial and respected relationships.
2. Poverty
According to the Central Bureau of Statistics, poverty is the inability to meet minimum standards of basic needs that include both food and non-food needs. The rate of population consumption is compared to the poverty line or the number of IDRs for consumption per person per month. The definition of poverty according to UNDP (United Nations Development Programme) is the inability to extend living options, among others by incorporating an assessment of the participation absence in public policy making as an indicator of poverty.
2.1. Causes of Poverty
Poverty has much to do with; individual, or pathological causes that see poverty as a result of behavior, choice, or ability of poor people side itself; family causes, linking poverty to family education; subcultural causes, linking poverty to daily life, learned or practiced in the immediate environment; the cause of the agency, which sees poverty as a result of the actions of others, including war, government, and the economy; structural causes, which gives the reason that poverty is the result of social structure (The World Bank, 2007).
2.2. Poverty Countermeasures Program
In many countries, the programs that have been undertaken in poverty alleviation have been the ban of poverty, or assisting directly with poor people, this approach has been part of the approach of European community since Middle Ages; support to the individual, that is the efforts undertake to change the situation of poor people based on the individual, including law, education, social work, job seekers; preparation for the weak, that is the efforts that made by providing support to the people who are categorized as poor, such as parents or people with disabilities, or circumstances that make the people become poor, such as the need for health care (The World Bank, 2007).
2.3. Labor
Sumarsono, (2009) tells us that a labor is everyone who is willing to work. It means all people who are working for themselves or others without receiving wages or those who are able to work. Which includes as the worker is someone who takes care of households, schools, who are looking for work, or are working around 14-60 years old. The labor market is the entire activity of perpetrator that brings job seekers together with job vacancies or meetings of demand and supply of labor (Sumarsono, 2009). The demand for labor is the amount of labor that demanded by a particular business sector influenced by the wage rate. While the supply of labor is a person's decision to work or not depends on the level of offered salary.
2.4. Women's Workers Participation
Women are an economic resource that is not less important than men, women actually hold a very important function in the family. The existence of women in households is not just a reproduction appendage, but more than that many studies prove that women are often give a great contribution to the economic viability and welfare of households and communities. The rate of woman workers participation in general is still low compared to men. Wherein the number of woman workers engaged in the labor market is only about half of the men (Suyanto, 2006).
But the existence of women which is absolutely greater than the male population, women are a potential that must be utilized to support the smoothness of development process. Empowering women should be done as soon as possible so that women can fill the development activities and the assumption that the woman is only a burden of development can be eliminated.
Women hold the primary key in creating a prosperous family and eventually also create a prosperous nation. In Indonesian labor market, women can not be ignored. In 1993, woman workers reaches ± 1/3 of the need for labor means woman workers are indispensable in various jobs. Thanks to this recognition the role of women who take part outside the household is also recognized.

3. Research Method

Research was conducted in Rokan Hulu, Riau. This location was chosen because Rokan Hulu is one of the districts / cities in Riau with high poverty rate. This research was conducted for 6 (six) months.
The data that used in this research are primary and secondary data types. Primary data includes the determination of criteria in order to identify the characteristics of poor people as well as efforts to achieve the goal of reducing poverty, determining what alternative programs can be taken to reduce poverty. Secondary data is an obtained data from the institutional survey through relevant sources to the studied topic, i.e. from relevant agencies such as the Central Bureau of Statistics and other.
As for data processing, in calculating the index of poverty can use a number of analysis tools (BPS, 2016), namely:
1. Headcount Ratio
2. Poverty Gap Index-P1
3. Proverty Severity Index-P2
A. Poverty Line
Formula to calculate poverty line is:
GK = GKM + GKNM
Where :
GK = Garis Kemiskinan or Poverty Line
GKM = Garis Kemiskinan Makanan or Food Poverty Line
GKNM = Garis Kemiskinan Non-makan or Non-food Poverty Line
The basic formula in calculating Garis Kemiskinan Makanan (GKM) or Food Poverty Line is:
Where :
GKMj = Garis Kemiskinan Makanan (poverty line) in area j (before being equalized to 2100 kilo calories).
Pjk = Commodity price of k in area j.
Qjk = Average quantity of commodity k consumed in area j.
Vjk = Expenditure value for commodity consumption k in area j.
j = Area (urban or rural).
The minimum value of non-food items can be mathematically formulated as follows:
NFp = Non-food minimum expenditure or non-food poverty line of area p (GKNMp).
Vi = Expenditure value per commodity /sub-group non-food of area p (from Susenas consumption module).
ri = Ratio of non-food commodities/sub-categories by region (result of SPPK D 2004).
i = Type of selected non-food commodity in area p.
p = Area (urban or rural).
B. Percentage of poor people
Head Count Index (HCI-P0), is the percentage of the population that is below the Garis Kemiskinan (GK). Headcount ratio is an analysis tool used to measure poverty level.
Calculation formula:
Where:
α = 0
z = poverty line.
yi = Average monthly per capita expenditure of population below the poverty line (i = 1, 2, 3, ...., q), yi < z
q = Number of people below the poverty line.
n = Total population.
C. Poverty Depth Index
Poverty Gap Index-P1, is the average size of the disparity in expenditure of each poor on the poverty line.
Calculation formula:
Where :
α = 1
z = poverty line.
yi = Average monthly per capita expenditure of population below the poverty line (i = 1, 2, 3, ...., q), yi < z
q = Number of people below the poverty line.
n = Total population.
D. Poverty Severity Index
The Poverty Severity Index (P2) provides an overview of the spread of expenditure among poor people.
Calculation formula:
Where:
α = 2
z = poverty line.
yi = Average monthly per capita expenditure of population below the poverty line (i = 1, 2, 3, ...., q), yi < z
q = Number of people below the poverty line.
n = Total population.
The location of this research can be seen from the following map:
Figure 1. Map Location Research

4. Research Result

These data the writer used in data process are to answering the problem formulation and purpose of this research, they are primary data and secondary data. Primary data is conducting direct interviews to poor families in 3 (three) districts with the largest number of poor people in Rokan Hulu, namely Rambah, Bangun Purba and Kabun, with total 150 respondents who are divided proportionally by percentage the number of poor people. The secondary data is used to answer other matters related to the problem and the purpose of this study which has not been answered through primary data.
a. Poverty Line
Poverty line in Rokan Hulu as issued by the Central Bureau of Statistics (2016), amounted to Rp. 420,884. To find out the poverty line in 2017, the poverty line in 2016 multiplied by inflation, so that the poverty line number is Rp. 446,426. That means people who earn below Rp. 446,426 is still below poverty, meanwhile the people who earn above the poverty line number means they have out of the poverty.
b. Percentage of Poor People (Head Count Ratio)
One of the advantages of using this index or ratio is related to the number of poor people, the number of poor people whose income is still below the poverty line can be seen by using this ratio, so the poverty alleviation programs can maximized. In this study, out of 150 respondents of poor families, there are 96 families with household income is below the poverty line. By using Headcount Ratio, the ratio of poverty in Rokan Hulu is 0.64%, which means that from 100 poor people in Rokan Hulu, there are 64 people have income below the poverty line.
This shows that poor people in Rokan Hulu who earn below the poverty line are still very large. This is inseparable from the dependence of poor families on household basic income in the absence of other activities that support household incomes enhancement.
c. Poverty Gap
Index of Poverty Gap shows how far poor people’s income gap from the poverty line, i.e. more high the index value, more great people’s average expenditure from the poverty line. Index of poverty gap (P1) is equal to 0.250% is obtained in this research, it means that poor people’s average expenditure below the poverty line is still far from the poverty line number. The index shows the poverty in Rokan Hulu is a serious problem and requires priority in handling so it can increase the income of poor people.
d. Poverty Severity
This index measures the severity of poverty difference between the average expenditure of people. The poverty severity index gives an idea of the spread of expenditure among poor people. More high the index value, more high the inequality of expenditure among poor people as well. In this research, severity of poverty index is 0.12%, which means the expenditure among the people who have income below the poverty line is still uneven. With a value close to 0 (zero) this indicates income inequality that occurs among poor people is not too severe, but requires more consistent handling so that the equity can increase income and reduce the poverty.
e. Empowerment of Woman workers
Basically, the greatest potential to increase poor families’ income can be achieved through the empowerment of woman workers based on the high proportion of poor people of female such as the table below.
Table 6. Number of Respondent Family Members by Sex in Rokan Hulu in 2017
     
The data above shows that the proportion of poor women has potential to support family’s economy. The role of women in reducing poverty is critical, where the percentage of poor people between men and women is not much different. With percentage figures reaching 48.6% of female poor people indicating the existence of women in poverty is of serious concern. The magnitude of this percentage will be able to reduce poverty if it gets productive activities that have not been seen. The Status of Work that undertaken by woman workers from poor families is also various types. This can be seen from the woman workers’ main job from poor family respondents as in the table below.
Table 7. Type of Woman Workers from Respondent Family in Rokan Hulu in 2017
     
The table below shows that out of 150 poor family respondents, there are 213 workers who can be empowered as a supporter of the family economy. Overall, the woman workers of poor family respondents in Rokan Hulu has a variety of activities that become their main occupation.
Table 8. Type of Woman workers from Respondent Family in Bangun Purba, Kabun and Rambah in Rokan Hulu 2017
     
Generally, woman worker working as a farmer that is equal to 38% or as many as 82 people from total 213 of woman workers. It is also inseparable from the main source of poor families’ income who are generally also from agricultural products. In addition, woman workers who work as merchants also have potential to be developed, where the size of woman workers who work as merchants around 22.5% or around 48 people. This happens because some who live in capital district or sub-district that is the center of the crowd choose to trade, such as trading in vegetables or daily shopping conducted in the market, at home or by trading around.
In general, these poor woman workers are working to support the family economy. But in reality the result of this job has not been able to help these poor families out of poverty. This can not be separated from the productivity of poor people families themselves. Adequate resources that are marked by education level of the workers themselves certainly is required to increase the productivity. This has not been able to be realized where the woman worker’s education level is not adequate as can be seen in the table below.
Table 9. Woman workers’ Education Level of Respondent Family in Rokan Hulu in 2017
     
The table below shows that generally the poor woman workers in Rokan Hulu only finished primary school education level with percentage equal to 36.2% or around 77 people from 213 woman workers which become object of research. This shows the low quality of woman workers education in Rokan Hulu.
Table 10. Poor Woman Workers’ Participation in Social Activities in Rokan Hulu in 2017
     
Woman workers who join social activities in Rokan Hulu is still uneven, where women worker who join social activities only 47,3%. This means that woman workers who are not joining social activities is greater than woman workers who join social activities around the area. Most of social activities that joined are just social gathering and reading 'yasin' which are not productive activities. Knowledge of poor woman workers about woman workers empowerment itself is low as described in the table below.
Table 11. Knowledge of Poor Woman Workers On the Existence of Women Empowerment Program in Rokan Hulu in 2017
     
Respondents’ low knowledge on women empowerment program is inseparable from low quality of woman workers education. With a low education level, an understanding of what empowerment is and how programs are run also very low. In addition to the busy work itself and the lack of massive socialization makes the woman workers’ knowledge on empowerment program become very low. From the results of conducted research, it is clear that the woman workers’ potential is considered to be a solution in efforts to alleviate poverty. The large proportion of woman workers in poor families indicate the importance of women empowerment programs to be able to perform productive activities to increase household income. Local governments should facilitate the potential of woman workers in these poor families. With the right empowerment program expects woman workers can do activities that increase household income.

5. Conclusions

The results of the research that has been done have these following conclusions:
1. Poor woman workers in Rokan Hulu are around 38-57 years old, with average education level only finished in primary school. The main job as a farmer is the job that is mostly cultivated by a poor woman worker in Rokan Hulu with average income Rp. 1,000,000 to Rp. 1,999,999. In addition, the percentage of poor people is still too large with a poverty line around Rp. 446,426, with HCI value around 0.64%. The poverty gap in Rokan Hulu is also too large, at 0.250% which indicates the average income and expenditure of poor people are still far from the poverty line. In addition, the poverty severity which is shown through the poverty severity index around 0.121% indicates there is an uneven inequality of income and expenditure among poor people themselves.
2. The proportion of poor woman indicates the number of woman workers in Rokan Hulu, thus having a potential to be developed. Woman workers in Rokan Hulu generally work as farmers and merchants. However, the low quality of woman workers is characterized by the low level of woman workers’ education causing the lack of productivity of woman workers themselves. In addition, woman workers still do not understand what the empowerment program is, apart from their respective business and education low level, this also due to lack of knowledge of the importance of women empowerment in order to alleviate poverty. And also is reinforced by the expectation of poor woman's workers that the direct government intervenes in pursuing productive programs to optimize the potential of woman workers among poor people.
The results also provide the following suggestions: (1). Improving poor woman workers’ education quality by conducting skills training and encouraging superior product understanding, so that woman workers are more skilled and have skills to produce excellent products. It also improves the educational facilities that are accessible to poor people so that future generations of poor people are able to get decent jobs to increase their per capita income. The government also prepares sustainable poverty alleviation programs, thereby reducing the proportion of the people who have low family income below the poverty line and is able to push poor people out of the poverty line and (2). Include poor woman workers in poverty countermeasures programs, such as creating training programs for woman workers in home industry, producing superior products, or creating woman's groups in carrying out productive activities that increase household income.

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