The study aim is to analyze how the effects of fiscal decentralization and Human Development Index (HDI) on poverty in Indonesia. This study employ secondary data in the form of time series from 2010 to 2017, and cross section data consisting of 33 provinces in Indonesia, so that the type of polled data can be categorized that is a combination of time series data (for 8 years) with cross section data 33 Province in Indonesia. The analytical method used is PLS (Panel Least Square) with a comparison of two models namely the Fixed Effect and Robust Least Square models. From the results of the Fixed Effect regression model shows that DDF has a negative and insignificant effect on Poverty, while HDI has a negative and significant effect on Poverty. The study found that each additional unit of DDF reduced poverty by 10.97 percent if the HDI remains. In addition, the Human Development Index unit reduced the number of poor by 79.83 percent if the DDF remains. These findings implied that to reduce the poverty, efforts to improve HDI need to be focused.

This research aims to identify alternative areas as the new growth pole and formulate a development strategy in the South West region of Aceh. The methods used are Klassen typology, gravity models, and breaking point. The scope of this research covers 7 (seven) districts and 1 (one) city for the period of 2011 to 2016. The entire district and city are assumed to be an economic unit treated as a parent area for all districts/cities. The results showed that, firstly, there could be 2 (two) growth poles if we divided by coastal areas, namely Nagan Raya District for the west coastal region of Aceh and  Southwest Aceh District for the southern coastal region of Aceh.  However, Nagan Raya Regency is the alternative choice for the new growth pole in South West  region of Aceh. Secondly, the improvement of the agricultural, forestry and fishery sectors as well as the development of human resources in accordance with the needs of the labor market is necessary to be able to develop the new center of economic growth.