Suburban Poverty in Indonesia: Policy Innovation in Combating Extreme Poverty in Kampar Regency

Abstract

This study investigates the dynamics of extreme poverty concentrated in suburban areas of Kampar Regency, Riau Province, Indonesia. Using a mixed-method approach, including Structural Equation Modeling (SEM-PLS), in-depth interviews, FGDs, and policy analysis, the research explores the characteristics of extremely poor households, underlying factors of suburban poverty, current policies, and innovations implemented to address these issues. Results reveal that extreme poverty is prevalent in aging households with low education, marginal farming income, limited access to credit, and weak social capital. Despite policy efforts, structural barriers, misaligned indicators, budget constraints, and sectoral egos impede effectiveness. The study highlights innovative local responses such as PULUT KETAN and PESIAR and offers policy recommendations aimed at contextualized, community-based interventions. This article contributes novel insights into the under-researched phenomenon of suburban poverty in developing countries.