Remittances are an important external financial resource for developing countries. Indonesia is the second largest migrant worker in the world after the Philippines. No less than 700,000 workers from Indonesia each year work abroad (BNP2TKI, 2012). The purpose of this study was to analyze the effects of remittance on poverty reduction in Indonesia. Especially the period 1983-2016. By using Multiple Linear Regression analysis based on the Ordinary Least Square (OLS). The variables used in this research are poverty as dependent variable and GDP, remittance,unemployment rate, Labour force participation rate and Gini index as independent variable. The results showed variables of Remittance, GDP has a significant negative relationship to poverty and Unemployment variables have a positive and significant relationship to poverty. The small amount of remittances earned can be attributed to low levels of education from migrants, low wage rates and the high cost of remittance delivery through institutions.