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Eduvest � Journal of Universal
Studies Volume 2,
Number 11, November, 2022 p- ISSN 2775-3735- e-ISSN 2775-3727 |
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EXPENDITURE PATTERNS OF THE
POOR IN CENTRAL SULAWESI |
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Meity Ferdiana
Paskual, Santi Yunus, Nuryana Haprin, Failur Rahman Universitas Tadulako,
Indonesia |
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ABSTRACT |
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Eradication
of poverty is one of the SDG's Goals. Increase in regional income and
economic growth of Central Sulawesi has continued to occur in the last 5
years. However, Central Sulawesi still has poverty rates above the national
average and relatively higher than other regions. Permendagri
No. 53 of 2020 notes that one of the strategies related to poverty reduction
is reducing the burden of spending on the poor. This study aims to explain
how poor people allocate their expenditures. So it
is hoped that it can add alternative regional poverty reduction policies. The
data used is household expenditure data with the criteria below the Central
Sulawesi Poverty Line. The database is sourced from raw data Susenas 2020. This study analyzes spending patterns, both
food and non-food consumption components of the poor. The results showed that
the consumption pattern of the poor was relatively larger for food
consumption, namely 64 percent compared to non-food consumption at 36
percent. As for the details of the 5 largest food and non-food expenditure
components, there are the Housing and Household Facilities component, the
Grain component, the Prepared Food and Beverage component, the Miscellaneous
Goods and Services component and the Cigarette and Tobacco component. This
study recommends the interventions to reduce regional poverty through
assistance in reducing the expenditure burden of the poor based on their
needs according to the results of the study. |
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KEYWORDS |
Expenditure, Consumption Pattern, Poverty |
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This
work is licensed under a Creative Commons Attribution-ShareAlike
4.0 International |
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INTRODUCTION
Central Sulawesi's regional income has continued to
increase in the last 5 years and in 2020 it will experience positive growth of
4.86 percent when national economic growth is negative at -2.07 percent (Sumarwan & Hira, 1993). Regional
income is one measure of economic success. At the same time, poverty in Central
Sulawesi, which is quite high, is still a polemic in regional development. It
is known that the poverty rate in Central Sulawesi in 2020 is at 12.92 percent.
This figure is above Indonesia's poverty rate which is at 9.79 percent (Safitri & Yusuf, 2020). Poverty in Indonesia and more specifically in Central Sulawesi has
indeed decreased in the last 5 years, but in terms of the East Indonesia region
in terms of numbers it is still the third highest after Papua and South
Sulawesi (BPS, 2020). This shows that there is economic improvement but is
still not able to have a significant impact on poverty alleviation in the
regions (Yunus et al., 2022).
Poverty
is an important issue not only for Indonesia but also an international issue as
outlined in a historic agreement regarding universal goals and targets known as
the 2030 agenda.(Djunaedi, 2002). The 2030 Agenda
recognizes that eradicating poverty in all its forms, including extreme
poverty, is an absolute requirement for sustainable development (SDGs). The
Central Bureau of Statistics (2022) on the website released
data on household consumption patterns in Indonesia
as shown in the following figure (Prasetyo, 2021).
Figure 1
Consumption Patterns in Indonesia and Central Sulawesi
The figure above shows
the pattern of household consumption in Central Sulawesi which tends to be
greater for food consumption. However, in 2020 it has increased until 2021 with
a larger portion of spending on non-food consumption which shows an improvement
in the level of welfare
(Mahi, 2016). At the same time, the fact that the poverty rate in Central
Sulawesi is quite high is still a polemic in regional development. This means
that there is a need for special interventions in dealing with poverty (Baja, 2012).
Permendagri
No. 53 of 2020 notes that one of the strategies related to poverty alleviation
is reducing the expenditure burden of the poor. The poverty alleviation
strategy by reducing the expenditure burden of the poor can be pursued if there
is a study related to the consumption patterns and components of the population
of Central Sulawesi who are below the poverty line. Therefore, this research is
expected to provide data related to consumption patterns and components of the
poor in Central Sulawesi so that they can provide additional knowledge and
input in formulating policies and interventions that can be carried out by
stakeholders to help reduce poverty in Central Sulawesi. (Rustiadi et al., 2011).
The benefits of this research are as follows:
1.
As a contribution of information and reference for further research
in the form of developing scientific insights.
2.
It is hoped that the results of this study will be useful for local
governments in planning and implementing development in the future to improve
the quality of life and welfare of the people of Central Sulawesi Province.
RESEARCH
METHOD
This research is a
quantitative research with descriptive analysis method. The object of research
is household expenditure for both food and non-food consumption as well as
income (from the expenditure side) of households in Central Sulawesi Province
in 2020 based on the sampling technique carried out by BPS Indonesia in the
2020 Susenas. The consumption component used is the consumption component in
questionnaire �2022 National Socioeconomic Survey� (SUSENAS) code VSEN20.KP.
The selected data
are expenditure and consumption data from people with income below the poverty
line, which is Rp. 483,662 (BPS, 2010). The number of households is 754
households and 4,023 people have income below the poverty line.
RESULT AND DISCUSSION
Description of Poverty in Central Sulawesi
Province
The poverty rate
for Central Sulawesi Province in the last 10 years has tended to decrease, but
is still above the national poverty rate. The following is data on the development
of the poverty rate of Central Sulawesi Province. The data shows that the
number of poor people in Central Sulawesi in 2020 is 398,730 people (Adhihapsari et al., 2014). This
number is quite high and is the second highest at the Sulawesi regional level
after South Sulawesi Province. The number of urban poor people in Central
Sulawesi in 2020 is 80,730 people, while the number of poor rural people is
318,000 people (BPS, 2021). The data shows that pockets of poverty in Central
Sulawesi are in rural areas. The following figure shows the percentage of poor
people in Central Sulawesi (Rustiadi, 2018).
Figure 2
Identification of Problems with the
Percentage of Poor Population in Central Sulawesi Province for the 2016-2020
Period
Source: RPKD Central
Sulawesi Province, 2021
The figure above shows
that in the last five years the percentage of poor people in Central Sulawesi
has tended to decrease from 14.09 percent in 2016 to 12.92 percent in 2020. BPS
data shows the percentage of urban poor is above the average achievements at
the national level. The percentage of urban poor in Central Sulawesi in 2020 is
9.21 percent, which is higher than the percentage of urban poor at the National
level which is 7.88 percent.
The percentage of rural
poor in Central Sulawesi in 2020 is 14.76 percent or greater than the
percentage of rural poor in the National which is only 13.20 percent. In other
words, both in urban and rural areas, the percentage of poor people in Central
Sulawesi is generally in the top 10 nationally or in the high category. The
high percentage of poor people in rural areas shows that program interventions
and activities over the last five years have not significantly reduced the
poverty rate in villages. This shows that the development of transportation and
economic infrastructure in rural poverty enclaves still has little contribution
in reducing the cost of living of rural communities and increasing people's
income. When viewed according to the Poverty Depth Index (P1) and Poverty
Severity Index (P2) indicators, Central Sulawesi also experienced an increase
compared to the previous year. it can be concluded that the poverty indicator
numbers in Central Sulawesi are still at a serious level to be addressed (Reksoprayitno, 2000).
This research uses raw data from the
results of the 2020 National Socioeconomic Survey (SUSENAS), which has a total
sample of 7,418 households. The number of poor households sampled in this study
went through a screening process to find as many as 754 or 10.16 percent of the
sample poor households. The data screening process was carried out using data
on the amount of per capita household expenditure per month below the 2020
Central Sulawesi poverty line, which is IDR 483,662 (BPS, 2020). Of the 754
households, there are 4,023 household members who fall into the category of poor
people with an average household member of 5 to 6 people in 1 household. The
majority of the sample poor households are in rural areas as shown in the
figure below (Stiglitz et al., 2011).
Figure
3
Percentage
of Poor Households Sample
�� The results showed that 85 percent of the poor live in rural areas and
15 percent live in urban areas. This shows that there are more pockets of
poverty in rural areas which have limitations in various basic service
facilities both in terms of infrastructure, Human Resources (HR) and access to
other sources of livelihood.
Figure 4
Consumption Pattern of the
Poor Sample
64 percent of the expenditure of the poor
is allocated for food consumption and 36 percent for non-food consumption. This
shows the low level of community welfare because most of the expenditure is
only to meet food needs. The details of the components of food consumption are
shown in the following figure.
Figure 5
Components of Food
Consumption
Components
of food consumption in poor sample households namely Grains, Tubers,
Fish/Shrimp/Squid/Squishy, Meat, Eggs and Milk, Vegetables, Nuts, Fruits, Oils
and Fats, Beverage Ingredients, Condiments -Seasonings, other consumption,
prepared food and beverages as well as tobacco and betel nut. The three food
components with the highest consumption are: (1). grains; (2). Prepared Food
and Beverages; and (3). Cigarettes and Tobacco. As for non-food consumption can
be seen in the image below.
Figure
6
Components
of Non-Food Consumption
Non-food consumption components include housing and household
facilities, various goods and services, clothing, footwear and headgear,
durable goods, taxes, levies and insurance as well as party needs and religious
ceremonies/festivals. The 3 components of the highest non-food consumption are:
(1). Housing and household facilities; (2). Various goods and services; and
(3). Taxes, levies and insurance.
Overall, the highest value of food and non-food consumption
for the poor is for the consumption of housing and housing facilities by 19
percent. Consecutively the other 4 biggest components for food and non-food
consumption are Grains, Prepared Foods and Beverages, Miscellaneous Goods and
Services and Cigarettes and Tobacco. The following figure shows details of food
and non-food consumption in poor household samples
Figure
7
Components
of Food and Non-Food Consumption
According
to districts/cities in Central Sulawesi, the poor population in 2020 is
Donggala Regency with the highest percentage or 17.39 percent. Then followed by
Tojo Una-Una Regency with 16.39 percent and Parigi Moutong Regency with 15.85
percent. However, when viewed based on population, Parigi Moutong Regency is ranked
first in the area with the highest number of poor people, amounting to 78,760
people. Followed by Donggala Regency with 53,170 people and Poso Regency with
40,200 poor people. This is in line with the distribution of the number of poor
households in the sample that are below the 2020 Central Sulawesi Poverty Line.
As shown in Figure 13 above, the largest sample of poor households is in Parigi
Moutong Regency with 14.19 percent, followed by Buol Regency with 12.07 percent
and Donggala Regency and Banggai Islands Regency each with 11.54 percent.
The
data shows that the average expenditure of poor sample households is IDR
2,051,730 per household per month. The average expenditure for each household
member is Rp. 384,580 per capita per month, with the lowest average expenditure
being Rp. 154,435 per capita per month to Rp. 483,299 per capita per month.
This value is below the provincial poverty line for 2020 of IDR 483,662 per
capita per month.
A
number of these expenditures are used for consumption expenditure both food and
non-food. The average expenditure for food consumption is Rp. 245,837 per
capita per month and for non-food consumption an average of Rp. 138,703 per
capita per month. In other words, 64 percent of poor household expenditure is
allocated for food consumption and 36 percent for non-food consumption (Figure
14). Meanwhile, food consumption has an expenditure component with the
following details.
Table 1
Percentage of
Food and Non-Food Consumption by Expenditure Component
Source: Processed
data, 2022
The
results above show that for food consumption, the largest expenditure is the
grain component (rice, corn, flour and others) with an average expenditure of
IDR 63,586 per capita per month or 25.87 percent. Followed by the prepared food
and beverage component with an expenditure of IDR 44,703 per capita per month
or 18.18 percent and the cigarette and tobacco component with an average
expenditure of IDR 30,901 per capita per month or 12.57 percent. This shows
that the poor people of Central Sulawesi obtain the largest source of
carbohydrates from grains.
It
is interesting that the poor population in the sample allocates quite a large
amount of expenditure for prepared food and beverages. In line with research (Yunus et al., 2022) which shows
that in general, people's consumption patterns in the digital era have shifted
to consumption of prepared food and beverages. This is driven by the high level
of mobility of the community, the increasing number of businesses selling
prepared food and beverages, as well as the growing development of digital
technology that supports the convenience of buying and selling processed food
and beverage transactions online. As for the components of cigarettes and
tobacco, they will be discussed further in the next sub-chapter.
Non-food
consumption accounts for a small percentage of the total expenditure of poor
households in Central Sulawesi, but has an interesting pattern for further
review. Based on the table previously shown, the largest non-food expenditure
is for the housing and household facilities component with an average
expenditure of IDR 74,936 per capita per month or 54.03 percent. Followed by
the Miscellaneous Goods and Services component with an average expenditure of
IDR 34,589 per capita per month or 24.94 percent and Taxes, Levies and
Insurance with an average expenditure of IDR 14,826 per capita per month or
10.69 percent.
The
housing and household facilities component includes costs incurred for renting
a house, maintaining a house, using electricity, water, fuel, repairing and
maintaining motor vehicles, using a telephone account, credit, internet costs
and other housing facility costs. Each item in this component is a very
important requirement in supporting daily activities. The Components of
Miscellaneous goods and services consist of goods and services attached to
self-care, school fees, course fees, education support goods and services,
health services, transportation, entertainment, financial services and other
services. while the components of Taxes, Levies and Insurance consist of Land
and Building Tax, Vehicle Tax, levies/levies, health insurance, life insurance
and others.
Overall,
if the combined weighting is carried out between the components of food and
non-food consumption, there is a pattern that is slightly different, with the
percentage values also having differences. The data shown in
Figure 17 previously shows that the 5 components with the largest expenditure
allocation, namely the first non-food consumption component for housing and
household facilities, which is 19 percent. The second largest component is food
consumption for Grains with an allocation of 17 percent, followed by the
Prepared Food and Beverage component with 12 percent, non-food consumption for
the Miscellaneous Goods and Services component with 9 percent and food
consumption for the Cigarettes and Tobacco components with 8 percent.
Departing
from the consumption component mentioned above, various policies in meeting the
needs of the poor can be formulated. Policies in the form of poverty
alleviation programs that are born from data on the needs of the poor are
expected to be more applicable as mandated in Permendagri Number 53 of 2020
concerning Work Procedures and Work Alignment as well as Institutional
Development and Human Resources Coordinating Teams for Provincial Poverty
Reduction and Coordination Teams Regency/City Poverty Management article 17
letter a). The regulation notes that one of the strategies related to poverty
alleviation is reducing the expenditure burden of the poor.
Food
consumption still dominates the expenditure component of poor households.
However, what is of concern is the high consumption of cigarettes and tobacco
in Central Sulawesi Province. This component is the component of food
consumption with the third highest proportion after grains, processed food and
beverages. Cigarettes are actually not part of basic human needs, but are
routine expenses so that expenses for consumption of basic needs should also be
shared with cigarette consumption.
Expenditure
allocations for cigarettes and tobacco have an impact on reduced or even
non-existent allocations for fulfilling nutrition such as consumption of fish,
milk and protein sources as well as consumption of fruits, vegetables and other
sources of vitamins. On the other hand, the impact left on by smokers and their
families can worsen welfare conditions, especially for poor households. A
health study showed that there was a relationship between family members'
smoking behavior and the incidence of ARI in toddlers (Safitri et al., 2022). The
condition of the low quality of health of the poor as active smokers allows for
additional spending on health services for personal and vulnerable families.
In
general, smoking behavior has a short-term negative impact, namely reduced
purchasing power for goods and services that can increase productivity, such as
nutritious food or education. While the long-term impact of smoking is a
decrease in health conditions which will then reduce the productivity of
oneself and family members as passive smokers, so that they are unable to
generate sufficient income to meet life's needs. This condition will certainly
exacerbate efforts to break the poverty chain in poor families (Setianto & Susilowati, 2014).
The problem of high cigarette consumption requires
government intervention through preventive and curative approaches. The
Preventive Approach is an act of social control carried out to prevent or
reduce the possibility of unwanted things happening in the future. While the
Curative Approach is a guidance effort directed at individuals who experience
problems. The purpose of this approach is to overcome the problems experienced
by individuals.
A preventive approach can be carried out through a
guidance and counseling system both in the health and educational environments,
namely in schools at various levels (elementary, junior high and high school).
Strict regulations need to be applied to students at all levels as well as
socialization and strengthening of the health sector through health workers in
every corner of the village.
A curative approach in dealing with poverty is
carried out as a binding effort for smokers who still live below the poverty
line. This approach can be carried out through local regulations or policies
related to the requirements for beneficiaries of poverty alleviation programs.
Such as the requirement not to pass active smokers as recipients of the Direct
Cash Assistance Program (BLT), Non-Cash Food Assistance (BPNT) and the Family
Hope Program. At the very least, prioritizing recipients of poverty alleviation
program assistance for poor non-smoker households can become a priority. In
addition, interventions can also be carried out by increasing the activities of
the poor through institutional activities, training and providing employment
opportunities. This is done as an effort to reduce free time which is usually
used for smoking activities, and replace it with other activities that are more
productive.
The
results of the data analysis show that the 5 components with the largest
expenditure allocation are the first, non-food consumption for the housing and
household facilities component, which is 19 percent. The second largest
component is food consumption for Grains with an allocation of 17 percent,
followed by the Prepared Food and Beverage component with 12 percent, non-food
consumption for the Miscellaneous Goods and Services component with 9 percent
and food consumption for the Cigarettes and Tobacco components with 8 percent.
It is known that Central Sulawesi consists of 13 regencies and cities.
Therefore, of course there are differences in consumption. The following figure
shows the consumption of the poor in districts and cities.
Figure 8
Components of Expenditures by
Regency/City in 2020
Source: Processed data
The picture above shows that poor households in
Palu City, district. Buol and Kab. Poso has the highest consumption expenditure
on housing and household facilities when compared to other districts. This
shows that these three regions have relatively higher consumption costs for
housing and household facilities than other regions. Therefore, district/municipality
governments need to maintain price stability, the availability of supplies of
goods and other poverty program assistance such as Livable House assistance
with a wider and more targeted beneficiary.
The largest expenditure for components of prepared
food and beverage consumption was made by poor households in the sample from
Palu City, Kab. Poso and Morowali Regency. . These three areas have the
characteristics of urban areas with a high level of mobility. Even though they
are below the poverty line, residents in the areas mentioned above tend to have
a high consumption of prepared food and beverages. This can be taken into
consideration in encouraging the MSME-based culinary industry.
Rice is a staple food for most people in
Central Sulawesi so that it becomes one of the largest consumption components
for the general public, including the poor in Central Sulawesi. the largest
consumption of grain components is in Tojo Una-Una Regency, Banggai Regency and
Banggai Kepulauan Regency with an average amount of more than IDR 70,000 per
capita per month. Therefore, it is important to maintain the availability of
goods, stability of rice prices and rice assistance for the poor.
The largest components of Miscellaneous goods
and services expenditure came from Palu City, Banggai Regency and Poso Regency.
The Miscellaneous goods and services component consists of goods and services
attached to self-care, school fees, course fees, education support goods and
services, health services, transportation, entertainment, financial services
and other services. This illustrates the need to improve services and programs
for the poor in the areas of education, health, transportation and financial
services. One example is increasing access to capital for poor people who meet
the criteria for entrepreneurship.
The next expenditure component is the
consumption of cigarettes and tobacco which is still a polemic amidst the high
poverty rate in Central Sulawesi. The following figure shows the Expenditure of
Cigarettes and Tobacco by Regency/City.
Figure 9
Components of Cigarette and Tobacco
Expenditures by Regency/City
Cigarette and tobacco expenditure is one
of the problems for the poor because it will reduce or even replace expenditure
allocations that should be made for the consumption of other goods and services
that have positive implications for productivity such as health and education.
The figure above shows the high consumption of cigarettes and tobacco by the
poor in Donggala, Toli-Toli and Tojo Una-Una districts. Therefore, local
governments need to carry out appropriate interventions to break the chain of
poverty and reduce cigarette consumption, especially among the poor.
�
CONCLUSION
As for some of the things that became the conclusion of the study,
namely pockets of 85 percent poverty in rural areas. Consumption pattern of the
poor population is 64 percent for consumption of food components of grains
(rice, corn, flour and others) with an average expenditure of IDR 63,586 per
capita per month or 25.87 percent. Followed by the prepared food and beverage
component with an expenditure of IDR 44,703 per capita per month or 18.18
percent and the cigarette and tobacco component with an average expenditure of
IDR 30,901 per capita per month or 12.57 percent. The largest non-food expenditure
is for the housing and household facilities component with an average spending
of IDR 74,936 per capita per month or 54.03 percent. Followed by the
Miscellaneous Goods and Services component with an average expenditure of IDR
34,589 per capita per month or 24.94 percent and Taxes, Levies and Insurance
with an average expenditure of IDR 14,826 per capita per month or 10.69
percent. Components with the largest expenditure allocations are (1) housing
and household facilities components (2) food consumption for Grains (3)
Prepared Food and Beverage components (4) Miscellaneous Goods and Services
components (5) Cigarettes and Tobacco components.
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