The Effect Of Program Keluarga Harapan (PKH) Effectiveness On Welfare With Productivity As A Mediation And Government Policy As A Moderation

Author: *Muhammad Ali, Hafasnuddin, Muslim Indonesia

Abstract:Program Keluarga Harapan (PKH) is a program of assistance for poor families in the district of Pidie, Indonesia, by providing assistance based on established criteria, to continue and develop their economic activities to make them more prosperous. The purpose of this study was to examine the effect of PKH effectiveness on community welfare with productivity as a mediation variable, and government policy as a moderation variable. The research object was the recipients of the PKH assistance program in the year 2019. The research sample was taken as much as 320 people from the number of the population of 36.230 people, based on krejcie table at a significance level of 0,05, and the confidence level of 95% to the population, by using the proportionate stratified random sampling technique as one of the probability sampling techniques. Data is collected through questionnaires, interviews, and observation. The data was analyzed using Structural Equation Modeling (SEM) techniques processed by the AMOS software. The result showed that the effectiveness of the PKH had a significant direct effect on community welfare of PKH recipients in Pidie district, the government policy moderated the effect of PKH Effectiveness on Productivity of PKH recipients in Pidie district, and productivity mediated the PKH effectiveness on the welfare of PKH recipients in Pidie district. These findings prove the causality model that involves effectiveness, productivity, policy, and welfare. The interesting issue that government policy is significantly needed to stimulate the effectiveness to improve productivity. Further researchers need to develop the model by elaborating concepts and variables like the factors that can stimulate the productivity to sustain the welfare, or what policy sector needed to sustain the welfare.

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