Measuring the physical infrastructure development as poverty reduction program in Kalimantan, Indonesia

Infrastructure plays a vital role in rural development. There is frequently a disparity in infrastructure development between rural and urban areas in developing countries, including Indonesia. Thus, a comprehensive analysis of infrastructure development is required. This study seeks to evaluate the impact of infrastructure development in Kalimantan, Indonesia, using the Physical Infrastructure Index framework. Using principal component analysis, this study develops the Physical Infrastructure Index. Derived from the Village Potential Survey data, the data consists of 30 indicators organized into 7 dimensions. The findings from this research show a disparity in Physical Infrastructure Index between municipalities and districts. This reflects the fact that infrastructure development in Indonesia focuses more on municipalities than districts, which are geographically difficult to access. This disparity contributes to Indonesia's poverty dilemma. It has also been demonstrated that the development of infrastructure has an effect on poverty reduction, whether in regions or municipalities.