Ismadiyanti Purwaning Astuti, Franciscus Xaverius Sugiyanto and Akhmad Syakir Kurnia
Poverty is a problem in developing countries especially Indonesia, one of which is caused by economic problems. This study aims to analyze the effect of financial inclusion and household characteristics on poverty reduction in Indonesia. The data used in this study is the 2015 Indonesia Family Life Survey (IFLS) data. The analysis used is probit regression analysis. The results of the study stated that financial inclusion had no effect on poverty reduction, while household characteristics variables, namely education, gender, marital status and residence, had a negative and significant effect on poverty reduction. Indonesia's financial inclusion index in 2015 is included in low inclusion so that it does not have an impact on poverty reduction. Increasing household characteristics will have an effect on poverty reduction, so there is a need for policies to increase household human resources in Indonesia in order to alleviate poverty.