Enhancing Household Resilience in Addressing Multidimensional Poverty Dynamics in Indonesia

This study examines the role of household resilience in shaping multidimensional poverty dynamics in Indonesia using nationally representative longitudinal data from the Indonesia Family Life Survey (IFLS) waves 4 and 5. A Resilience Capacity Index (RCI) was constructed through principal component analysis based on food security framework, while multidimensional poverty was measured and tracked using the Alkire-Foster method and poverty transition matrices. Multinomial logistic regression was employed to analyze the effect of resilience and household characteristics on poverty dynamics. The findings reveal that higher RCI significantly reduces the likelihood of households remaining in multidimensional poverty. Access to basic services and asset ownership emerge as the most critical pillars of resilience, while education, household size, employment sector, and geographic location strongly influence poverty transitions. Female-headed households and those in rural or off-Java areas are particularly vulnerable to persistent deprivation. Policy recommendations include integrating resilience-building into national poverty alleviation programs by expanding access to education, healthcare, and infrastructure, promoting productive asset diversification, and designing targeted interventions for vulnerable groups. Long-term investment in human capital is essential to disrupt intergenerational poverty traps, while social protection systems should evolve to strengthen structural resilience rather than provide only short-term relief. The study underscores resilience as a key determinant of sustainable poverty reduction. Strengthening households’ capacity to absorb and adapt to shocks offers a strategic pathway to address multidimensional poverty and improve long-term welfare outcomes in Indonesia.