Local Wisdom-Based Social Welfare Policy to Address Structural Poverty and Social Inequality in Indonesia

Abstract

Structural poverty and social inequality remain major challenges to Indonesia's development, despite the implementation of various social welfare policies. This study aims to describe the local wisdom-based social welfare policy model implemented in Indonesia, analyze its contribution to reducing structural poverty and social inequality, and identify supporting factors and barriers to its implementation. The research method used is a qualitative literature study, with data obtained from journal articles, books, and research reports from the past five years relevant to the topic. Data collection was conducted through a literature review, while data analysis employed content analysis to categorize and interpret findings from various sources.

The results show that social welfare policies that integrate local wisdom, such as mutual cooperation (gotong royong), deliberation (musyawarah), the (arisan) system, and customary-based financial institutions, have proven more effective in increasing community participation, strengthening social solidarity, and providing social protection for vulnerable groups. However, the implementation of these policies still faces obstacles such as weak local bureaucratic capacity, limited inter-institutional coordination mechanisms, and the influence of modernization that erodes traditional solidarity values. Thus, this study emphasizes the importance of combining formal government policy approaches with local wisdom-based social forces to realize more inclusive and sustainable social development in Indonesia.