Indonesia Poverty Rate Drops to 0.85% in March 2025
Indonesia’s Extreme Poverty Rate: A Closer Look at the Numbers and Standards
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Jakarta, Indonesia – July 25, 2025 – The Indonesian Central Statistics Agency (BPS) has provided an update on the nation’s poverty figures, revealing that 3.56 million Indonesians, or 1.26 percent of the population, were living in extreme poverty as of September 2024. This figure, though, is based on an older international standard, sparking discussion about the country’s poverty measurement methodology.
Understanding Extreme Poverty: The World Bank’s Yardstick
During a press conference in Central Jakarta on Friday, July 25, 2025, Ateng, the BPS Deputy for Social Statistics, shed light on the methodology behind these numbers.He clarified that the calculation of extreme poverty adheres to the world Bank’s 2017 standard.This standard utilizes a purchasing power parity (PPP) of US$2.15 per day. For those unfamiliar, PPP is a crucial conversion method that adjusts for differences in purchasing power between countries, offering a more accurate comparison of living standards.
The Discrepancy with the New World Bank Standard
This reported extreme poverty figure presents a notable contrast when compared to the latest World Bank data released in June. The international financial institution recently revised its international poverty line to a 2021 PPP of US$3.00 per day.
If Indonesia were to adopt this newer,more stringent standard,the number of extremely poor individuals in the country as of September 2024 would see a significant increase,reaching an estimated 15.42 million people, or 5.5 percent of the population.This is a substantial jump from the 3.56 million (1.26 percent) reported using the older poverty line for the same period.
Ateng explained the BPS’s continued reliance on the older World Bank standard,emphasizing the need for continuity and alignment with the National Medium-Term Advancement Plan 2025-2029. This development plan, he noted, still references the US$2.15 PPP per capita per day benchmark. “This is for continuity in evaluating it,” Ateng stated,underscoring the importance of a stable framework for assessing progress and planning future strategies.
The Overall Poverty Picture in Indonesia
beyond extreme poverty, the BPS also shared data on the overall national poverty rate.as of March 2025, the overall poverty rate stood at 8.47 percent, translating to approximately 23.85 million people. This figure indicates a positive trend, representing a decrease of 0.20 million people, or 0.10 percentage points, compared to the September 2024 data, which recorded 24.06 million people (8.57 percent) living below the poverty line.
Ateng further elaborated on the data collection process for the March 2025 National Socio-Economic Survey. he mentioned that the data was collected in February 2025, as the month of March coincided with the holy fasting month of Ramadan, a period that could perhaps influence survey responses. The comprehensive survey involved a sample of 345,000 households, strategically spread across all 38 provinces and 514 districts/cities throughout Indonesia, ensuring a robust and representative dataset.
This ongoing monitoring and reporting by the BPS are vital for understanding the socio-economic landscape of Indonesia and for guiding policy decisions aimed at poverty reduction and national development.