Bridging the gap: The impact of suramadu bridge provision on poverty reduction in Madura Island, Indonesia

Abstract

This study estimates the causal impact of the Suramadu Bridge—the longest in Indonesia—on poverty reduction on Madura Island. Employing the synthetic control method, we model the counterfactual poverty trajectory in the absence of the bridge. The results indicate significant poverty reductions emerging years post-construction, suggesting delayed effects. Impacts varied regionally, with poverty reductions being significant in some areas and modest in others. We argue that transport infrastructure can alleviate poverty primarily through enhanced mobility rather than local economic development. Policymakers should thus pair infrastructure investments with remittance-channeling programs and regional industrial policies.