Mitigating global warming has been a challenge, and policymakers are responding to this issue by strengthening the commitment to enhance the renewable energy target from 20 to 31 percent in 2025 for Malaysia. However, adopting renewable energy in stages based solely on microeconomic factors, such as the price of energy, is insufficient. Thus, it is essential to investigate the macroeconomic variables that influence the share of renewable energy in Malaysia. In detail, this study introduces selected macroeconomic indicators, including gross domestic investment, domestic investment, foreign direct investment, trade openness, urbanization, financial development, and carbon emissions level, and their impact on renewable energy in Malaysia. The study utilized ARDL (Auto-Regressive-Distributed Lag) estimation based on annual time series data spanning 50 years of observations, beginning in 1971 and ending in 2020. Long-run elasticities show that greater economic development and urbanization increase the proportion of renewable energy. In contrast, increased foreign investment, trade liberalization, and carbon emissions could reduce the use of these clean energies. This paper concludes with a policy recommendation that could assist the country in achieving its goal of implementing a low-carbon, renewable energy-focused state policy.

LESSONS FROM COVID-19: SMALL AND FINANCIALLY STRONG FAMILY

Microfinance Institutions (MFIs) can help reduce poverty by offering small loans to people who cannot get bank loans due to lack of collateral. However, in Indonesia, access to microfinance institutions is unequally distributed, as shown by the establishment of MFIs in Indonesia, which covers only 22 out of 34 provinces. This condition limits their impact on poverty reduction. This study examines how access to MFIs and the loans they provide affect poverty rates in Indonesia, using cross-sectional data from 22 provinces between 2016 and 2022. The results show that access to MFIs and the loans they provide do not significantly reduce poverty. This is due to poor infrastructure, low-quality MFI services, and insufficient loan amounts. The study also found that education lowers poverty, unemployment increases it, and agriculture helps reduce it. To improve poverty reduction, the government should improve infrastructure and extend MFI coverage to more provinces. Additionally, MFIs should increase their loan amounts to make a bigger impact.

Rural accessibility has been an important situation to enhance people living. Lack of access limiting people’s opportunity to not only economic choices but also educational and health aspects. Various studies found that there was a positive relationship between better accessibility and poverty, health, and educational measurements. One indicator to measure accessibility is Rural Access Index (RAI), which developed by The Worldbank. Eventhough Indonesia has quite high RAI, but in realty Indonesia still experience large disparity of road condition in its regions. Accessibility became big problems because it may cause worse effect on wider aspects, for instance health. Health, which proxied by infant mortality rate, is worse in villages with poor acessibility. Thus, government must do adequate efforts to enhance accessibility and at the same time make sure that more villages can gain better access.Keywords: Rural Access Index (RAI), accessibility, infant mortality rate

Household debts reflect financial insecurity for households to maintain their standard of living because it reflects the financial commitment that must be paid to other parties. However, the share of debts among different household classes, especially among agriculture and rural households in Indonesia still needs to be discovered. This research investigates the distribution of households’ debts in rural areas in Indonesia by utilizing data from the Indonesian Family Life Survey (IFLS) Wave 5 (2014). This research shows that households in rural areas have lower average debts than those in urban areas. At the same time, households in rural areas outside Java Island have higher average debts than their counterparts in Java Island. Two significant contributors to households’ debts are household size and household head educational attainment, where both variables show a positive and significant effect. The government must focus on rural development, including agricultural-based households, creating small but financially strong households, and increasing food self-sufficiency. Keywords: agriculture, debts, households, rural

This study explores the economic, educational, and infrastructural challenges in Srigonco Village, Bantur District, Malang Regency, Indonesia. The village's dependence on agriculture makes it economically vulnerable, while limited educational opportunities and inadequate infrastructure further hinder development. The study emphasises the critical role of financial literacy in empowering residents to make informed financial decisions and better utilise financial services. By implementing Training of Trainers (ToT) programs, the village can enhance financial management skills and promote economic resilience. Improved financial literacy is expected to lead to increased asset ownership, participation in productive activities, and long-term economic stability, ultimately improving the quality of life for the community.