An Indonesian Economic Policy: The Poverty Impact of Nickel Downstream in Mining Regions
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Abstract
This study analyzes Indonesia's nickel downstream policy, examining its impact on poverty in mining regions and the challenges associated with implementing it. This study was conducted to address claims that economic improvement stems from the downstream processing of nickel in mining regions. This study uses a mixed-method approach with a sequential explanatory design, combining quantitative and qualitative research. In the quantitative analysis, a panel-data regression with a Random Effects Model is applied, using Cluster-Robust Standard Errors. Meanwhile, in the qualitative analysis, data were analyzed thematically using manual coding of interview transcripts to identify key patterns. The findings indicate that the estimated panel-data regression model shows a relationship between the dependent variable (poverty) and three independent variables: Industrial Management, Life Expectancy, and Literacy Rate. The findings suggest a relationship between the dependent variable (poverty) and three independent variables: industrial management, life expectancy, and literacy rates related to poverty, so that the downstream contribution of nickel from the mining sector is high or positively influential through industrial management aspects; its benefits do not reduce poverty in nickel mining regions.
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