CHAPTER be a strong reason why many

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1.1  Background

fulfill their needs, people always struck by troubles which hinder them from
being wealthy.It may be caused by biological factor, limited employment, bad
economical system, geography, incapableness, and the other switch make people
become poverty. What is the definition of Poverty?. According to Reitsma and
Kleinpenning, Poverty is an inability of individuals to fulfill their needs,
both material and non-material

people, especially the eastern.Is still trapped in the chain of poverty. How it
can be? The eastern people only have low quality education, lagging industry
development, low lifestyle and habits which still far from worth to compete
compared with the western Indonesian people in order to succeed the country.
Also, eastern people’s opportunities for working are very low. The limited
educations, relations, and employments make them just able to become casual
labor in foreign companies which spread over their land. They never have a
chance to taste anything from their plentiful land resources. It’s a sad truth
that the foreigners were the ones that taste the natural resources instead of

is a complex and difficult issue for the government to deal with because it has
interrelated factors. In my opinion, the factor that  most affects one’s economy is education. If
someone lacks of formal education, they also lack the skills needed by the
works. These people will lose competitiveness with the modern labors. Lack of
education makes Indonesian people unable to work. Lack of works and human
resources quality make some companies to use machines or foreign workers,
rather than the Indonesian itself. In addition, laziness is a thing that can be
a strong reason why many Indonesian people are still unemployed and trapped in

is a serious matter which is an important task to be resolved by the
government. Poverty causes people to suffer from the rest of their lives. It’s
difficult to eat, live in decent places, get education properly, and much more.
Therefore, through this paper, I will discuss how important it is to understand
and reduce poverty.


1.2  Problem Identifcation

on the elaborated background, the problem identification for this paper are:

What is

What is the
cause of Poverty?

How to solve

How is
Poverty viewed from the perspective of Pancasila?





























2.1     Definition of Poverty

In the popular scientific dictionary, the word “Poor” implies no treasure
(insufficient possession). In Indonesian language, the word “fakir” which also
translated into “poor man” is defined as condition of a very poor person.
Etymologically, the meaning of poverty is loaded with consumption problems. It
starts from the neo-classical period before in which poverty is only seen from
negative (imbalance) interaction between the worker and the wages earned.

Poverty can also be interpreted as a situation where a
person can not fulfill the needs of everyday life or could be said with a
condition of all-deficits in other words lacks of material, in which they are
not able to get the facilities of education, health services, and other
conveniences available in modern times.


Causes of Poverty

general, there are several factors which caused poverty, including the

Low Level of Education

         A low level
of education can lead people to poverty. This is because the people have no
education  skill that can be used to earn
income, raise their standard of living and be able to meet their needs.

Lack of Creativity

         If people could use their creativity,
without any doubt they could have an income and able to raise their standard of
living. Also, they could use every aspect and infrastructure that exist to seek
and obtain income sources.

High Birth Rate

High birth rate also leads Indonesian People to poverty.
This is caused by large expenditure cost and it is possible the wealth will be
depleted over time. But, this won’t happen to a social group that has enough or
more incomes. They are not considered as poor social group, because they are
still able to support their family members. This seems to be mostly seen in big

Influence from the Environment

The environment can affect the level of poverty. Someone
who lives in a poor neighborhood will also carry the poverty flow. Moreover,
inside a group there are individuals that are unable to take care of themselves
and meet their needs. They are considered as ignorance groups or member of the
group who are always lazy to work.


Economic level of the social group could be seen
influencing clearly. A person from the poor, absolutely will also cause him to
become poor. Or, because their parents couldn’t fulfill all of their needs, so
they consider their life as destiny that has been determined by the Almighty.
Thus, they are lack of willingness and effort to change their condition.

Another factors which could be seen as real cause of poverty are a flow of
urbanization in big cities. Many people from village come to town and most of
them looking for work, without good skills.


Solutions to Overcome Poverty

is one of the most difficult social matters to be solved. Therefore, there are
several solutions to taking out Poverty

Handling the
Problems of Malnutrition and Food Shortage

From the problem of
inequality in the amount of nutrition received compared to children with the
rich family and the poor family surely could influence to the child’s health
and mental. If the people get a good nutrition for a good food, it is expected
to reduce the level of poverty.

Expansion of
Education Opportunity for the Poor

Each child of a nation
that is categorized as poor should be the priority over Education Assistance
from the government. The government must create justification and equality in
the society in access to gain education.


Expansion of
Business Opportunities

Indonesian people that
are categorized as poor should be encouraged to create their own employment,
business, or company through training and capital provision. Thus, the society
could start entrepreneurship and the new job creation is expected to improve
the society welfare.


Poverty from the
Perspective of Pancasila

There are two principles of Pancasila which is related
with to this  matter, those are the
Second Principle and the Fifth Principle, explained as follows

According to the Second Principle “A Just and Civilized

Poverty is very
contrary to the values of humanity. If there are people that can not fulfill
their needs and do not get access to education and good health service, it is
contrary to the values of humanity.

According to the Fifth Principle “Social Justices for All

Poverty shows that
injustice exists and could be felt directly. Poverty is a reflection of
injustice, such as differences food quality, access to education, good health
service, and economically in the income gap. Any gap between “The Rich” and
“The Poor” must be reduced.



















Poverty is a common thing in life.
From the increasing progress of science and technology, the needs will also be increased.
Poverty alleviation is not only the duty of the government, but also the
community. They must realize that this social matter is the duty and
responsibility for the government and society. Poverty could be caused by
heredity, environmental influences, and low levels of education. This problem
could be diverted from the distribution of good nutrition and food quality,
accessing facilities to education and health, lastly encouragement of
entrepreneurship. Poverty itself is very contrary to the Second and Fifth
Principle of Pancasila, because poverty is against value of Humanity and
Justice. With hope that the Government can create pro-small society policy and
society can take an active role in alleviating poverty, at least by killing
their laziness.

Categories: Entrepreneurship


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