The process of urbanization leads to the development of rural urban areas, either in the form of transitional area or interactive area, and becomes a site for urban and rural activities aligned, and the natural conditions in the region experiences rapid changes. The construction expansion is expected to create wealth that can be measured through poverty reduction and regional finance improvement. Therefore, the purpose of this study was to examine changes in demographic elements and regional finances in Prabumulih as a result of development in that region. The data used during the data were Prabumulih region data in period of 2000- 2014 for financial data and data of 2010 to 2014 for demographic variables. The quantitative analysis, Pearson Product Moment Correlation (Correlation PPM) was used in order to find out and test the associative hypothesis or relationships among demographic variables used in this study and descriptive analysis to assess the financial condition in Prabumulih region. The findings in this study indicated that the total population which increased due to the development expansion in the process of the urbanization, contributed to the economic development through the poverty reduction and regional finance source improvement in the form of regional income, that showed an increase in the amount of the region's ability to financial expenditure and contributed more to regional income or economic development.
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