Jurnal Ekonomi dan Studi Pembangunan, 9 (2), 2017 ISSN 2086-1575 E-ISSN 2502-7115 167 The Effectiveness of Jalin Matra Penanggulangan Kerentanan Kemiskinan Programme in Village of Ngroto Yeni Nurmawati, Thomas Soseco* Faculty of Economics, Universitas Negeri Malang *Correspondence email: thomas.soseco.fe@um.ac.id Received: June 16, 2017; Accepted: August 20, 2017; Published: November 3, 2017 Permalink/DOI: http://dx.doi.org/10.17977/um002v9i22017p166 Abstract Poverty always appears in the middle of society, especially in the developing countries. Poverty occurred due to people are powerless to come out from poverty problems they face. This condition, indeed, will be a burden in the development process, thus it needs many efforts and attempts to cope with poverty. In order to improve effectiveness towards poverty overcoming strategy and to improve people economy, the government of East Java Province re-established Jalin Matra PK2 (The Other Way to be Independent and Prosperous towards Poverty Vulnerability Overcoming) Programme. This study is a qualitative research using descriptive analysis. The research result showed that: 1) For 29 households (59.19%) stated that there was the increase of income after gaining financing loan, thus the effectiveness of Jalin Matra PK2 Program seen from income aspect run less effectively. The change of income affected by many factors such as the increase of consumption towards target households which influenced by number of family member and more various household needs, also capital or financial needs to sustain the business; 2) For 32 households (65.31%) stated that there was the increase of business turnover after gaining financing loan, thus the effectiveness of Jalin Matra PK2 Program seen from production aspect run effectively. The majority of targeted households able to improve their business; 3) From 477 targeted households listed in almost poor household, so far, that able to get loan was 49 households (10.27%), thus the effectiveness of Jalin Matra PK2 Program seen from financing aspect not run yet effectively. Keywords: Poverty, Effectiveness, Jalin Matra PK2 JEL Classification: I31, I38 INTRODUCTION The poverty problem occurs in society especially in developing countries According to Undang-undang Republik Indonesia (Indonesian Law) number 32 of 2004 about local governance, local government, in development effort, have to put society as a subject as well as object of development, with no exception in its poverty reduction efforts. Each province in Indonesia is required to be active in the implementation of poverty reduction programs. In the Province of East Java, because of various poverty reduction programme that took by whether central, provincial, and district/city government successfully reduce poor population. On March 2009 the poor population in East Java were 6.022.590, or 16,68% of total population. This number reflects a