Issues in Business Management and Economics
Vol.4(6), pp. 54-62 September, 2016
Available online at https://www.journalissues.org/IBME/
Article ID /BM/16/035/09 pages
Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.
Original Research Article
A policy scenario modeling of poverty alleviation program in Indonesia: An application of Promethee method
Nafiah Ariyani1, Akhmad Fauzi2, Bambang Juanda3, and Irfan S., Beik3
1Department of Rural and Regional Development Planning Faculty of Economics and Management Bogor Agricultural University (IPB), Indonesia.
2Department of Economics Natural Resources and Environment, Faculty of Economics and Management Bogor Agricultural University(IPB), Indonesia.
3Department of Economics, Faculty of Economics and Management Management Bogor Agricultural University(IPB), Indonesia.
*Corresponding Author E-mail: nafiah_ariyani(at)yahoo.com
One of the challenging issues in poverty alleviation programs is to determine the set of multi criteria which encompass aspect of inputs, process and output that yield the best alternative program. This is important due to the fact that poverty is a multidimensional issue and criteria for input, process and output are varying. This study aimed to address such a challenge by employing a multi criteria analysis. A Promethee (Preference Ranking Organization Method for Enrichment Evaluation) was used to assess existing various poverty alleviation programs. In addition, a hybrid policy was introduced in order to compare with existing policies. The results of the study show that the Zakat program performs well in terms of data accuracy, the accuracy of the program, planning, implementation, monitoring and evaluation, achievement of targets, sustainability and the establishment of public institutions. In contrast, a program initiated by the private sector, i.e. CSR performs well in the availability of funds and monitoring and evaluation, while the pattern of government programs excel in aspects such as planning and the availability of funds. Overall, the newly introduced policy of hybrid program offers the best performance for all aspect of inputs, process and output in administering the poverty alleviation program.
Key words: Poverty, alleviation, hybrid, Promethee.