ABSTRACT

As is common in other developing countries, Indonesia has problems with the huge number of people living in poverty, especially youth. As of September 2013, 11.47% of the total population were categorized as poor (Badan Pusat Satistik, 2013), an increase from 11.37% in March 2013. 1 This figure does not include those who are categorized as near poor, which is around 94,000,000, or 38.5% of the country’s total population of 249 million (Ruslan, 2013). Ruslan noticed that poor people are not only categorized as transient poverty (those who became poor due to changes in the surrounding environment, such as the increase of oil prices or monthly inflation) but also, more appropriately, they are categorized as chronic poverty-those that are poor not only in income but also in capability. They have been poor for generations, and without proper intervention they will predictably repeat this cycle of poverty in future generations.