Hana Suci Anggraeni (1420302175/Class E) Cause and Effect Essay

The Causes of Poverty in Indonesia

Indonesia is one of the big countries in Southeast Asia which has high population of citizens (Sugiharyanto, 2006:70). That big population of citizens in Indonesia make the government harder for giving attention to his citizens. Whereas, the poverty of Indonesian citizen are spread in very great quantities in most of districts in Indonesia. That case make Indonesia get 15^th rank of the poorest country in Asia (Poorest Countries in Asia by GDP rank, 2015). Indonesian’s poor citizens usually live in the small islands of Indonesia which rarely reached by government and technology. Some of them also live near the central government, but they still can not get their prosperity. The case of poverty in Indonesia is motivated by several reasons, either internal reasons (inside Indonesia) or external reasons (global effect).

There are many reasons that cause poverty in Indonesia, the first one is termination of employment. The causes from termination of employment is because of many crises in Indonesia that make some companies decide to reduce some of its employee. The crises are consist of several kinds, they are moneter crisis, knowledge crisis, and political crisis. A moneter crisis is one of the external reason which happens because of instability of the global economy, while a knowledge crisis occurs because of incompetence labor are replaced by competence labor. The last is political crisis which occurs because of the game that played by executive circle in the company. They sacked their employees and replace them with their families or their relations.

The other causes behind the poverty case in Indonesia is about government’s policy which is one of the internal reason. Some of government’s regulation are not giving advantages for the citizens. One example of the rules that make the citizen are getting miserable is an increasing of BBM price. The price of foods, clothes, and transportations are definetely increase and hard to decrease.

The last big problem that make the number of poverty are getting increase is the high rates of corruption. Indonesia even placed at the most corrupt country in Asia Pacific (Political & Economic Risk Consultancy, 2008-2010). Many cases of corruption are mostly happened inside executive circles in Indonesia. They took citizen’s money for their individual needs without thought about citizen’s prosperity.

The high rates of poverty in a country always cause many negative impacts for the country itself. Several things that will be happened as impacts of the poverty are high dropout rates, criminal cases, and declining health of citizens. The Government should begin to take a step for decreasing so many poverty case in Indonesia.

           Shortly, Indonesia is one of the big countries in Southeast Asia which has a high population of citizens (Sugiharyanto, 2006:70). Most of the citizens are on the stage of poverty. There are three cases that causes  the high poverty rate in Indonesia, they are: termination of employment, government’s policy, and the high rates of corruption. The impacts from the high poverty rates in Indonesia are high dropout rates, criminal case, and declining health of citizens.

Cause and Effect Essay Made By : Hana Suci Anggraeni (1420302175/E)