The purpose of this study is to analyze how the influence of domestic investment, working capital loans, SME loans to poverty reduction in East Java in 1993-2012. in this regard the proposed hypothesis 1) there is a significant effect of domestic investment with poverty reduction 2) there is a significant effect of working capital loans to poverty reduction in East Java 3) there is a significant impact on poverty reduction SME loans in eastern Java.
This is a research study in the form of quantitative analysis of the factors affecting the level of poverty in East Java. This study uses multiple linear regression method / OLS with the aid of a computer program Evies version 8. The analysis showed that from the T and F arithmetic calculations can be seen that the independent variables have influence together on the dependent variable. domestic investment showed slight positive influence and significant impact on poverty reduction in East Java, while working capital loans and SME loans showed negative and significant impact on poverty reduction in the province of East Java
Based on the conclusions submitted several sran namely: the government should create a favorable investment climate particularly domestic investment, as well as increasing the potential of the region in order to get more revenue so that funding capital loans also increased, in addition, the government must maintain the confidence of financial institutions in order to credit SMEs will continue to run.
Keywords: poverty, penenaman domestic capital, working capital loans, SME loans