The Effectiveness of Economic Education in Reducing Extreme Poverty in Indonesia

Abstract

This research aims to evaluate the effectiveness of economic education as an instrument for reducing extreme poverty in Indonesia through a systematic literature review approach. While various social assistance programs have been implemented, the sustainability of poverty alleviation heavily relies on human resource capacity in managing economic resources. By analyzing diverse academic literature, government policy reports, and secondary data from the 2020–2025 period, this study synthesizes the roles of financial literacy, entrepreneurship education, and digital economic inclusion in transforming the economic structure of vulnerable communities. The review results indicate that economic education is effective in breaking the cycle of structural poverty by shifting consumption behavior toward productivity and enhancing household resilience against economic shocks. However, its effectiveness is often hindered by digital access disparities and curricula that lack relevance to local wisdom. This study recommends the integration of non-formal economic education based on digital ecosystems to accelerate the target of zero percent extreme poverty in Indonesia.