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   1 CHAPTER 1 INTRODUCTION This chapter is background and main reason why the research is carried out. It is consists of (1) research background; (2) problem statement; (3) research questions; (4) research objectives; (5) research benefits; (6) research limitations; and (7) conceptual framework. It aims to show importance of research which is conducted. Research Background Poverty is a multidimensional social problem in the world and become a central issue in developed and developing countries. Poverty is characterized by  backwardness and unemployment. Then, it can raises income inequality and disparities between population groups. The disparities between rich and the poor can’t  be ignored, because it will lead to various problems in the social, economic, and  political in the future. As we know that, poverty has become social problems which are urgent and critical, so there was an idea from the United Nations Secretary General Kofi Anand makes a commitment to against poverty in the world. It is known as “Global Call to Action against Poverty . In September 2000, Millennium Summit of United Nations which is agreed 189 member states to declare Millennium Development Goals/MDGs. The millennium development goal is reduction 50% of the poor by the end of 2015, so that development of social welfare should prioritize poverty reduction to be focused, integrated, and sustainable. Indonesia is one country that participates in the implementation of the Millennium Development Goals (MDGs) in accordance with the mandate of the State Constitution, Act of Republic Indonesia 1945, and Five Principles of Indonesia. Indonesia as a developing country that has the fourth highest population in the world, also can't avoid poverty problem. Based on the reports of Central Statistics  2 Agency (2013) 1  shows the fact that, the number of the poor (the population with per capita expenditure per month below in poverty line), Indonesia in March reaches 28.07 million people consists of the poor urban population reaches 10.33 million  people while the poor rural population reaches 17.74 million people. From those data, it can be concluded that the number of the poor in rural areas is relative higher than the poor in urban areas. Majority of Indonesian people who live in rural areas is peasants. However,  based on the fact that Indonesian peasants are still the poor. It is caused by several factors: land ownership is relatively narrow, low of human resources, the soil is infertile to be causes of crop failure, lack of technology, and low of attention and government role to alleviate rural poverty. Meanwhile, the main problem of poverty in urban areas is the high unemployment rate. This is a result from imbalance between increases of population in every year compared with jobs available in the city. Thus,  based on these facts lead to the population of Indonesia is still in the poverty line. Poverty raises disadvantages to the sustainability of country’s development. According to Chambers (1983) 2  poverty has many disadvantages consist of: a)   Poverty is marked by inability to fulfill the need of clothes, food, housing and low income.  b)   Physical weakness is high dependency among family members for living c)   Vulnerability, the poor families have no reserve in the form of money or food to deal with emergency situations d)   Powerless, the poor people have no power against powerful people who often exploit them. Poverty problem in Indonesia become obstacle of development process in Indonesia. It is characterized by instability of economic, political, and social. In addition, poverty have various impacts:  first,  the high rate of crime because every person will try to fulfill their daily needs by many ways;  second,  the high number of mortality from the number of people who disease infected due to dirty environment and lack of money for treatment; and third,  the high number of people that get low quality of education. Therefore, the government has taken various actions in the form of policies to address the impact of the poverty problem. It is according Dye in Widodo, 1 Berita Resmi Statistik No. 47/07/Th.XVI, 1 Juli 2013.  Profil Kemiskinan di Indonesia Maret 2013 .(online).Available at:   2  Chambers, Robert. 1983,  Rural Development Putting The Last First  . New York :John Willey&Sons  3 2007:12 3 , says that public policy is whatever which is government to do or not do something. Indonesian government has implemented many policies related to alleviate  poverty. It is accordance with Act of Republic Indonesia 1945 article 34 paragraph 1 4   said that: “ the poor and neglected children are maintained by state”. In addition, based on Law number 11 of 2011 on Social Welfare paragraph 19 5   said that: “poverty alleviation is a policy, programs, and activities which is done towards persons, families, groups and or people who have not income source and can’t fulfill decent needs of humanity.” So from regulation above, it is some policies from Indonesian government to alleviate the poor through community empowerment programs include:   Local Empowerment Program to Overcome Economic Crisis (  Program  Pemberdayaan Daerah Mengatasi Dampak Krisis Ekonomi ), Program of Subsidy Reduction Compensation Fuel Oil (  Program Kompensasi Pengurangan Subsidi  Bahan Bakar Minyak  ), Sub-district Development Program (  Program Pengembangan  Kecamatan ), Urban Poverty Alleviation Program (  Program Penanggulangan  Kemiskinan di Perkotaan ), Coastal Community Development Project (  Proyek  Peningkatan Masyarakat Pesisir  ), Collective Enterprise Group (  Kelompok Usaha  Bersama ), National Program of Community Empowerment (  Program Nasional  Pemberdayaan Masyarakat  ). From the empowerment program above, Indonesian Government has target poverty rate only 7.55% in 2015 (Widi 2007) 6 . Some of programs above have implemented in various regions that have the highest poverty rate and become priority of the government. Implementation of some  policy is a form of response and responsibility from Indonesian government towards  poverty alleviation. Government as policy makers in the first steps have arranged various planning will be implemented in the field as a form of policy implementation has certain goals and objectives in each program. It is according with statement from Howlett and Ramesh (1995) 7   defined that policy implementation as “the process whereby programs or policies are carried out; it denotes the translation of plans into 3  Widodo, Joko. (2007).  Analisa Kebijakan Publik  . Malang:Bayu Media Publishing. 4  Act of Republic Indonesia 1945 5  Law number 11 of 2011 on Social Welfare 6  Waskito, Budi. Strategi Optimalisasi Kinerja Pemberdayaan Masyarakat Melalui Peningkatan Mutu  Hubungan Interpersonal  .Lampung:Universitas Bandar Lampung 7 Howlett, M. and Ramesh, M.1995. Studying Pubic Policy .Oxford University Press.London  4  practice. In addition, Jones in Nawawi (2009:132) 8  explains that implementation is ability to form relationships further in the causal chain that connects the action with  purpose. One of the government programs is the poor empowerment program-social empowerment direct aid. This program comes from Ministry of Social Affairs (  Kementrian Sosial/Kemsos)  and it has been implemented since 2007. It is empowering the poor through strengthening the capital to manage Productive Economic Business ( Usaha Ekonomi Produktif/UEP  ) with use group approach by social empowerment direct aid (  Bantuan Langsung Pemberdayaan Sosial/BLPS  ). It is stimulant funds which are distributed directly to collective enterprise group (  KUBE) through account banking. Existence of Collective Enterprise Group (  KUBE  ) is expected to be instrumental in order to increase Productive Economic Business ( Usaha Ekonomi Produktif/UEP  ). Particularly, it can increase the poor income.  KUBE    becomes motivate for the poor to be more advanced economically and socially side. The social side is creating cooperation and solidarity of each member through interactions among them. Meanwhile, the economic side is teaching for the poor about independent. It means that, after the poor give assistance, they are expected to have a  business, so it can increase income for welfare of themselves and their families. In addition, its business also expected to be managed well or even to be developed further become independent business, not only to fulfill personal needs themselves but also can even help others (Ministry of Social Affairs, 2011) 9 . Development process of the  KUBE implementation has three stages consists of growth, development, and advanced or independent. Thus, it can be used to determine success or failure of the  KUBE implementation in the community. Report of Social Director General (2007) 10  shows that, The poor empowerment program-Social Empowerment Direct Aid (P2FM-BLPS)  through Collective Enterprise Group (KUBE)  has been done in 33 Provinces, 99 Regencies in Indonesia. According to Director General of Social Empowerment and Poverty 8  Nawawi, Ismail.2009.  Public Policy: Ananlisis, Strategi Advokasi Teori dan Praktek  .Surabaya:PMN 9 Dayasos, Maya.2011. Seminar Kelompok Usaha Bersama .(online).Avalaible at:  10  Dirjen Sosial RI. 2007.  Program Pemberdayaan Fakir Miskin (P2FM) melalui Bantuan Langsung  Pemberdayaan Sosial    (BLPS) . Jakarta
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