The Significance of Family Hope Program (PKH) in Improving the Poor's Welfare as an Indicator of Community Empowerment

Abstract

In light of the crucial role that community empowerment plays in the economic development of nations, this study investigates a sensitive issue pertaining to government welfare initiatives targeting the impoverished population in developing countries. The research focuses on assessing the impact of Indonesia's Family Hope Program (PKH) on elevating life satisfaction, enhancing psychological well-being, and mitigating economic anxiety among marginalized individuals within the Indonesian society. Furthermore, this study examines the mediating role of financial self-efficacy in facilitating the program's ability to promote financial stability among the citizens of Indonesia. Data was collected through a survey of 520 households in ten villages located in Jakarta, Indonesia, and subsequently analysed using SmartPLS v.4. The findings of this research demonstrate that the Family Hope Program, a government-sponsored financial assistance initiative aimed at aiding impoverished individuals, significantly contributes to increasing life satisfaction and psychological well-being among the Indonesian populace. Simultaneously, the program is shown to reduce economic anxiety by providing financial security to those in need. Additionally, the study reveals that individuals' financial self-efficacy significantly interacts with the financial assistance they receive, leading to an improved level of financial stability. This study represents a valuable addition to the existing body of literature in the field of social sciences, as it empirically investigates the positive outcomes generated by Family Hope Programs, moving beyond mere qualitative evidence or the presentation of statistics related to government financial aid for socially disadvantaged individuals.