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The Impact of the Suramadu Bridge on Rural Poverty in Kabupaten Bangkalan, East Java, Indonesia

Summary Subject and purpose of work: This research was conducted to measure the influence of the Suramadu Bridge on the reduction of rural poverty and to determine the impact of production factors such as physical capital, natural capital, human capital and financial capital on poverty before and after the Suramadu Bridge began operating in Kabupaten Bangkalan. Materials and methods: This study adapted the model used by Nashwari et al (2017) which was analysed applying Ordinary Least Square (OLS). The data from Village Potential 2007 and 2017 was used in the research. Results: Many production factors in the village did not have a significant effect on the poverty reduction before the Suramadu Bridge began operating. After the Suramadu Bridge opened, it has had a significant negative impact on poverty. The number of farmers, rice fields, non-agricultural activities, superior products, skills facilities and credit facilities has a significant positive effect on the reduction of the poverty level. Conclusions: The existence of the Suramadu Bridge has increased the influence of production factors in the villages on the poverty reduction in Kabupaten Bangkalan.


Introduction
Poverty can be found in rural area especially in a developing country, including Indonesia (Heineman et at, 2011). In 2017, the number of poor people is around 26,98 million by comparison 10,67 million (39,54%) in town area and 16,31 million (60,45%) in rural area (BPS, 2018). The high number of poverties in rural areas indicates that rural development is not optimal in utilizing the existing resource (Hayami, 2001). This condition becomes worse due to the backwash-effect of rural development so that the existing resource 3rd IRCEB (human capital, natural capital and financial capital) in rural area distributed to town area (Ke &Fesser, 2010).
The development paradigm is changing for several last decade. The development which emphasized in the town area at first by using macro indicator has changed into specific and regional development. A Trickle-down effect that expected to stimulate rural development did not happen. Town area grows more and develops faster while rural area is unable to catch up. (Rustiadi et al, 2009).
The description of the lack of trickle-down effect can occur in Kabupaten Bangkalan.
It is in East Java province which is one of the underdeveloped regions with high poverty rate. Geographically, the location is not far from Kota Surabaya as the capital city, but it is separated by Madura strait along 5  On the other hand, the economic impact of beneficial infrastructure is not singular but consists of many factors that are interrelated and related. There are several other factors such as physical capital, natural capital, human capital and financial capital which results in reducing poverty. Education and skills will increase the ability, experience and education level of the resident. A high level of education and skills will reduce the level of resident's poverty (Ogutu & Qoim, 2019 The wide area of rice fields and irrigated ones will increase residents' businesses and reduce poverty levels (Nashwari et al, 2017). The existence of farmers will increase the number of businesses and reduce poverty (Larson et al, 2016).
This research was conducted to measure the impact of the Suramadu bridge on poverty in Kabupaten Bangkalan. Besides, it aims to measure the impact of production factors such as physical capital, natural capital, human capital and financial capital on poverty before and after the Suramadu bridge operates.

Literature Review
The World Bank defines infrastructure by the availability of facilities and means of transportation, telecommunications, sanitation and clean water, education, health, irrigation and energy to meet public needs (World Bank, 1994). Road has a role in creating value of goods. Following neoclassical theory, an item has a value under the cost of production or specifically by the cost of labor's sacrifice spending. The road is a tool that can create higher value on an item to meet customer satisfaction. In this case, the road provides value for an item through the process of moving goods from the center of production to the center of consumption. The creation of value for goods by the road makes it an economic valuable tool (Polak & Heertje, 2001). The road transportation system was built to increase access and mobility of goods/ services so that the transfer of basic needs from the source of production to the final consumer went well. The road's capacity development or improvement will cause industries to move near the location of the road and close to each other so that production costs will be lower. Declining production costs are also the reason for agglomeration and trade-off between economic scale and transportation costs. Companies that sell goods on the urban market can minimize costs by moving factory locations further away but larger production capacities or factory locations which is close to markets but smaller production capacities (Anderson & Lakshmanan, 2004).
Purwoto and Kurniawan (2009) explain the benefits of road construction can be measured by increasing mobility and efficiency that occurs among residents. Increasing the quality and quantity of roads will encourage the traffic of people, goods, and services carried out by the residents within the region as well as inter-regional mobility. In the economic context, the existence of the road will increase the productivity of road DOI  transportation which results in cost efficiencies either in the cost of non-production household transportation and production household transportation. Increased cost efficiency means that there are cost savings calculated per unit of production or unit of consumption so that the potential of the region can be exploited by the existence of the road. On the other hand, roads will also give benefit from the increasing income from sectors that supply inputs (labor, capital, and raw materials) in their development.
An increase in income also means an increase in people's purchasing power which in turn will have an impact on increasing resident economic activity.
The concepts and definitions of poverty are quite diverse, and the diversity is caused by different data and methodologies, as well as the background of the methodology getting an opportunity to try also influence someone to earn an income to meet the minimum basic needs that must be fulfilled. Low income is also used as a measure of poverty, but social, environmental and even empowerment aspects and the level of participation also contribute to influencing these limitations.

Methodology
This study uses a model used by Nashwari et al (2017)

Discussion
Investment in transportation infrastructure is often done to have an impact on the economic performance of a region. There is a hope that good transportation acts as a catalyst for private sector investment, creates jobs, increases economic activity and grows the local economy. Improved transportation enables time and cost savings DOI    access to credit, the public is expected to be able to take advantage of this access and increase their income through lending, especially if it is used for productive activities.
Difficult access to credit causes resident must rely on limited savings for investment and small entrepreneurs must rely on profits to continue the business. As a result, income inequality has not diminished, and economic growth has slowed. The role of credit in DOI

Conclusion
The The implication is that the policy makers must be able to maximize the existence of the Suramadu bridge by making Kabupaten Bangkalan as a supporter of regional growth centers. The center of growth in East Java is in Kota Surabaya, which is on one side of the Suramadu Bridge so that the proximity of the location can make Kabupaten Bangkalan as a provider of housing, trade and tourism facilities. The agricultural sector still has a large role in reducing poverty in rural areas even though the area of rice fields has decreased after the Suramadu bridge operates so that the protection of agricultural land must be increased because the majority of the rural population still works in the agricultural sector. represents non-agricultural activities in the form of housing or warehousing plays a role in reducing poverty so that the trade activities on a large scale must be increased. The presence of migrants abroad does not influence poverty, this shows that the money of migrants returning to the village is not distributed for productive business but for the daily needs of the family that left behind.
The superior products owned by the village influence poverty so that it is important to make serious efforts in developing rural superior products. Suramadu Bridge has encouraged people to visit Kabupaten Bangkalan and they need gifts, souvenirs or food that can be provided by residents in Kabupaten Bangkalan. The existence of a market in the village did not influence the poverty reduction because the scale of the business of a small market economy and the limited involved residents were not significant in increasing resident businesses.
The existence of human capital is illustrated by educational and skills facilities where only the existence of skills facilities influences poverty reduction. This shows that the educational facilities in the village are generally basic education that does not play a role in improving skills. Improving residents' skills can be facilitated by the existence of skills facilities to encourage resident in entrepreneurship.
The existence of credit facilities, especially cooperatives, must be used as a means of reducing poverty in rural areas through increasing the number of cooperatives as providers of resident financial capital. The existence of credit program whose purpose is to reduce poverty does not actually affect poverty. This condition is suspected that many credits program are not properly targeted so there are many credits programs are received by the resident who are not eligible to receive them.