Poverty alleviation efforts have been carried out by theEast Kalimantan Provincial Government in various ways, but so far theseproblems have not achieved the desired results. This study aimstodetermine the direct and indirect effects of direct and indirect expenditure, domestic investment (PMDN), foreign investment (PMA) onGrossRegional Domestic Product, and poverty in East Kalimantan. To analyzethe data used Path Analysis. The data used is secondary data in theformof time-series data from 2007–2020. The results show that the direct effect of direct expenditure, indirect expenditure, PMDN, and PMA on GRDPispositive and not significant. Indirect expenditure and GRDPhaveanegative and significant effect on poverty. Meanwhile, direct expenditurehas a positive and insignificant direction on poverty. PMDNhas a positiveand significant direction towards poverty. Furthermore, the indirect effect of indirect expenditure and PMA on poverty through GRDP is negativeandsignificant and the indirect effect of direct expenditure and PMDNonpoverty through GRDP is negative and insignificant. Simultaneouslythevariables of direct expenditure, indirect expenditure, PMDN, andPMAhave a significant effect on GRDP and poverty in East Kalimantan.
Keywords : direct expenditure, indirect expenditure, domestic investment, foreign investment, gross regional domestic product, poverty.